Just wondering if it is best to contact a company and discuss leasing or is it best to let a company contact you? We have been contacted by one small company who made us a very small offer but have not been contacted by any of the larger companies. Should we call some of the larger companies that are leasing in our area?
Hello JC, That is a difficult decision to have to make. If you are ready to sign and don't call them, the wait can eat you up. If you contact them you show, imo, a lack of willingness to wait them out , thus making yourself a target of the timeline game.
If you can't wait call them, because if you feel the need to hurry and sign you may as well get it over with.If you can wait, make them call you!
Thanks snakestewart. This is all new to me. Our land is in a county that is just now heating up. San Augustine county in Texas. I know Chesapeake and Encana are there but we haven't been contacted by them yet. I am thinking since we have been contacted by a smaller company that maybe a larger company that can make a better offer may contact us.
I waited the out for 6 months (about 1 year ago). I ended up with $200 per acre for 275 acres. If I knew then what I know now, my family would be in a much better place.
IMHO, WAIT, WAIT, and WAIT. The aren't contacting you because "you might" be in a good area.
They have the knowledge. Take your time and get educated. Read all of the lease information Kassi has posted and don't accept anything less.
I used an attorney and didn't have near as good of a lease as she has provided.
I know the money could come in handy now (It always can). That is something they count on. If they offer you "x" now, you are more than likely going to start thinking of what you can do with that money. And eventually you will probably "need" the money. Or at least you will feel like you need the money. Read the posts under "favored nation clause". Actually read every post on here that you can. You'll soon be able to figure out who's - who and take some of the info with a grain of salt. (I do have to give kudo's to the ones who actually proclaim themselves and landmen.)
Everyone comes to this from a different vantage point. Take it all in, and then make your decision.
GOOD LUCK TO YOU. AND THANK GOD THIS SITE WAS STARTED!!!
I was told that some of the better negoiators don't work off offers, they make the companies work off their proposals. So I think once the big companies have made an offer, it is okay to hit them with a proposal. Just remember, what they offer is always much lower than what they will pay.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More