Replies to This Discussion

Permalink Reply by Snake Stewart on September 30, 2008 at 11:05

Hello Amanda, They will have to pay you 100 % of what your portion is after costs and fees associated with bringing product to market if they do not lease you. They can come to you after said well is producing and still try to lease you. If they wait until after the well comes in to try and lease you , it can give you much more bargaining power if the well is a good one. They aren't looking for business partners. Learn as much as you can and be sure and reply to any pooling notifications if it goes that far. Good luck.

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on September 30, 2008 at 11:42

Amanda,

Snake has given some good advice about waiting until after the well is drilled. If you are not satisfied with the terms that you are being presented with why not lease AFTER the well is drilled. After the well is drilled you will know ALL OF THE FACTS. Do not be intimidated into signing anything that you are not 100% satisfied with.

• ▶ Reply

Permalink Reply by Big Daddy, bcnr on September 30, 2008 at 14:56

Amanda, Snake and Parker have provided you w/ great advice. The only thing I can add after going through the lease process a couple of years ago is EVERYTHING in a lease IS negotiable. If a landman is standing firm on an issue, try contacting the company directly. Lastly, get a depth / Pugh clause. This way the company only leases the depth in question. All minerals above or below that depth are fair game; subject to additional leasing and bonus payments. This the one issue I wish I had known about before leasing. Don't be afraid to ask questions on this site. There are a lot of knowledgleable people who have been there and done that. Remember, leasing in NW La is LONG term. Get it right the first time. Good Luck.

• ▶ Reply

Permalink Reply by Snake Stewart on September 30, 2008 at 16:22

One thing that really sticks out in new peoples questions is the fear of the unknown.The fear of being left out can be much worse then a horrible lease, until we find out later of course that isnt the case.Being someone that hasnt ever faced a lease situation before puts me at a huge disadvantage when it comes down to it.Gaining knowledge is the only way to offset this disadvantage.This site is a God send for that.Through your comments,having dealt personally with leases,we can gain the insight needed to give us some comfort for what we face.Thanks for lending to this discussion C & P ! If Amanda and myself & others like us will apply the information that can be gleaned from this site , then everything will ok when its all said and done.

P.S. Parker , Those R/B & Rice were delicious!

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on October 1, 2008 at 6:09

Thanks.

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on October 1, 2008 at 6:20

Amanda,

I friend of mine has 100 acres in Red River Parish. His daughter was contacted about 1 1/2 ago about leasing her property. There were some problems getting everyone to agree because hers was heir property and still in succession. He told her to give the landman his name so he could go ahead
and lease his property. The offer at the time was for $100 per acre bonus and .1875 (3/16th) royalty. When he didn't hear from the landman, he contacted them himself. They said they had leased enough property and were through in that area. He was sick. He has leased that property several times over the last 20 years. He felt like he had missed out on "free" money. Shout that was $10,000.00. Who couldn't use $10,000.00.
Well fast forward to now. When they came back through and leased he got $1,500 an acre bonus and 25% royalty. He went through an attorney this time (he never had the previous 20 years) and was happy with the details of his lease. $150,000.00 sure beats the heck out of $10,000.00. But 25% is a TON better than .1875 (3/16th) royalty. If he had waited he might have gotten $9,000.00 to $10,000.00 per acre. He made the best deal he could based on the information that he had at the time. He is happy with his deal.
You have the advantage that he didn't have. The cat is out of the bag. Spend your time gathering the best information that you can. And try to sort through what is fact and what is opinion. All that I can offer you is my opinion.
GOOD LUCK and enjoy this as the Blessing that it can be.

• ▶ Reply