Do you think if everyone from all the parishes did not sign unless.......
We all could agree on a flat rate amount with all the same contracts royalties ect... how long would it take for the OG companies to give us what we want ?......( a major coalition). And What would we ask for?..
Just a thought
It would be possible to deal with this through the allocation of interests in the group. For example, a DeSoto Parish mineral acre might get 10x the credit that a north Natchitoches Parish mineral acre would get. Of course, everyone would have to agree to the allocations.
I had an opportunity to put my acreage in with a group in a different section but I knew my acreage was in a prime location and did not want to negotiate with those whose bonus would be smaller. Also the person negotiating wanted 1% of royalty.
The people that seem to be getting paid on Barnett are the last available to sign!Being in a central position on the Shale would be an advantage but certainly not the best paying.Surely the powers that be on the Barnett didn't save the best locations for last!Huge subdivisions with 1000 home sites with no drill clauses.Is big O & G stupid enough to lease all the bad spots 1st and take a chance 5 years later that the great spots will still be there.Listen to yourselves people.The truely prime locations are the ones that got leased up last month.That will be the same story told from here to eternity.You will be right on the fringes or its a little deep right here.We really have all we want right now but I guess just because I like you so much,I may be able to get you in.Please!
And then of course the old "penalize the holdout neighbor routine".Instead of the landman having to deal with the ones that may know whats going on and holding out for a "fair"deal,he gets the holdouts own neighbors to jump them for him!Business is business though.Not only are you going to get screwed on your deal,you will probably hate your neighbors guts as much as he hates yours.Thats what I call killing two birds with one stone!Don't get me wrong.Some of the negotiations that are taking place right now are showing some mighty fine numbers!Make no mistake!But why would they be sitting on well numbers(some paying fines to keep from releasing data)if the best had already slipped by.You can be very happy with $8000 in Dogwood! Untill you find out some shmuck in Webster Parish got $16,000 two months later.Or a subdivision that wasn't even supposed to get offers a year ago gets $21,000.You are happy now,I hope you will be able to maintain that same attitude a year from now.My gut thinks that you will feel screwed.I hope on this point I am totally off base.For all of our sakes.
If you listen to the reports that CEO's are telling their stockholders,unless they are completely unable to even know what the truth is,the Haynesville Shale is many times greater than the Barnett.I don't know,I am just taking their word for it.They are the all knowing,I'm just a blogger with a keen sense of skepticism when it comes to the powers that be.They didn't get where they are from selling Girl Scout Cookies.And I am kind of leary of those little gals.(just kidin' gals)
If Haynesville is greater then Barnett,then why are people settling for such a small % of what it is worth.$27,000 per acre for Barnett land that was the worst piece of property out there.It must have been the worst if it took 8 years for somebody to try to lease it.NW Arlington Group were only in negotiations for about 6-8 months.The last of the last ,signing for the greatest amount of money!I guess they were smarter then us! That fringe crap didn't matter to the landowners in Fort Worth/ Arlington
"Well this is still clearly prospective at this point"(QUOTE).Then turn the data loose!Sit back and wait for greed to grab some of the other players by the knap of the neck.Before you know it those imaginary lines the players had agreed on are starting to vanish and they are coming over in to your territory.Right now the big boys are playing rather quietly together but before long the gloves are going to come off, just like they have in every other play.Those landowners that are still available will be cashing in.While everyone else watches quietly.Well I hope its quiet anyway.Because we were warned.
Hey people............. Let's get this thing done so they can start drilling.........accept a good offer and take your money to the bank! Then just sit back and wait for the royalties to start coming in.......that's where the BIG money is.
I am also ready to "get this show on the road".I have said from day one that bonuses were a drop in the bucket compared to the true value of the Play.On the Barnett Shale, estimates are that after all drilling and production costs are paid,one acre of land could be worth around $1,000,000 per acre over the 25 - 30 year life of the play.With a signing bonus of $27,000 and a royalty of 26%,that comes to a rough total of $287,000 per acre before taxes.People that got in a big hurry & ended up with $150 and a royalty of 1/8 (12.5%).That person ends up with about $125,150 per acre over the same length of time, right down the road from Mr. & Mrs. $287,000 per acre.
While everyone is ready to get paid,neither of us would be willing to swap with Mr. $125,150 if we were Mr. & Mrs. $287,000 now would we.Our being in a big hurry will not speed up the drilling companies one bit.They have enough land right now to drill for 10 years at current rig rate according to Big O & G.I don't know that,I can only take their word for it.Being in a big hurry has crushed many in my area big time.
There are many on this site that have drawn the big royalty checks around my part of the country.To the tune of $30 -$40 every quarter,if it was a good quarter.For some ,the bonus is the most money they will ever see from this play.Not all areas are going to produce as well as others.It may be too deep to be viable at this time.It may be too thin to even drill it in some areas.There are many things that could affect this play and the people involved directly or indirectly with it.There are no guarantees.If there were then Big O & G would step up to the plate and write the big checks and get to drilling! Because as you and I know,that is where the Big Money is at,just as those wonderful drilling companies know the same thing.Thanks for your Post,as you have made me do a real gut check on myself.I have enough land to be in fantastic shape!For that I am very grateful!But for many,that is certainly not the case.
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