I was told by the landman for camterra who is currently trying to lease in the area that he was "voluntarily" going back to the neigbors that had leased for less money and catching them up to the "going" rate. I hear that there may be a legal requirement for the landman to do this. Can anyone confirm this?
His name is Jeremy Evans. And he is not offering very much either. But we are in the early stages on getting organized in our area. We even have a website now, norrisferryshale.com, but he told me personally that in a "good faith" offer he was going back to the neighbors that had leased earlier for a lower amount on the bonus and paying them the differnce in order to keep everyone happy in the area. To be honest I haven't been very impressed with his business dealings.
There is no statute that requires companies to "catch up" those Lessors who signed for less money or royalty than their neighbor. Each trade made between the individual landowner and the oil company is done on a stand alone basis. In other words, you, as the landowner make the deal that works best for you and your deal has no bearing on the deal that your neighbor makes. Unless, as pointed out by Po Boy, your lease contains a favored nations clause. Should your neighbor be paid more money or royalty by the same company, then they must pay you more money or royalty to equal that which was paid to your neighbor.
It very well could be that because Camterra has other operations planned in this area, there are paying the additional money so as to create goodwill with the landowners in the area.
Chesapeake would not agree to a Favored Nations Clause when I leased 20 acres in T 10 N R 11 W a few months back and I heard from a Petrohawk Landman that they won't do the Favored Nations Clause either.
The only landowners that will get a favored nations clause are the one who have bargaining power i.e. your large landowners. If you are a small lanowner, you most probably will not be given one though it never hurts to ask. Or, if you can convince all of the landowners in your section to lease as a "block" you might be able to get a favored nations clause.
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