old as dirt but still trying to get educated. Looking for advice.
Ninety per cent of the answers on this post are probably, and as right should be, for young people. Think of me as standing with one foot in the grave and the other on a banana peeling. If something (pretty good) comes along. it might not be wise for me to pass it up waiting on something real good.On the other hand, since you never get too old to learn, I might seize on something no good at all in trying to rush things up a bit. This is where you folks are helping me out a lot and I 'preciate it.
Getting down to reality. I am supposed to sign Monday or Tuesday, 25th and 26th for 17,500.00 and 25%. But---also heard that the lease if for 5 years. I presume that means that I'm gonna be held to that for 5 yrs. and that they probably won't drill before then. Now since I have already signed an agreement with this home owners et. al. I must sign or if I do not and then sign with someone else within the next six months, I will still have to pay their lawyer 500.00 per acre. Now some of you young whippersnapper have got to come up with some good advice for th is old man
Getting down to reality. I am supposed to sign Monday or Tuesday, 25th and 26th for 17,500.00 and 25%. But---also heard that the lease if for 5 years. I presume that means that I'm gonna be held to that for 5 yrs. and that they probably won't drill before then. Now since I have already signed an agreement with this home owners et. al. I must sign or if I do not and then sign with someone else within the next six months, I will still have to pay their lawyer 500.00 per acre. Now some of you young whippersnapper have got to come up with some good advice for th is old man
Views: 41
Replies to This Discussion
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Permalink Reply by Jeff on
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YOU COULD SELL YOUR MINERAL RIGHTS LOCK STOCK AND BARREL FOR A NICE CHUNK, BUT IT WOULDNT BENEFIT YOUR HEIRS AS MUCH, MORE NOW FOR NOTHING LATER?
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Permalink Reply by P.G. on
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One way to find out what will be going on would be to try and get a shorter lease term. If the O&G rejects it, then one can assume they don't plan on drilling anytime soon!
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Permalink Reply by KT on
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An old man told me this and I try to remember it in every circumstance. There was this man he knew that was doing "pretty good." One day he looked around and got dissatisfied, thought he could do better. So he packed up and went out and tried to improve his lot. Things didn't work out just right for him there either - so he came back - only to find "pretty good" had gone. This fellow aint done well since. In my circumstance "pretty good" is as good as it gets.
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Permalink Reply by P.G. on
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Of course in this shale play, the land owner is still sitting on what he O&G companies want, no matter how many games get played. If the markets get better for Nat. Gas, sitting tight on it might be the best thing anyone could do.
But of course that only works for someone who has the time on their side.
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Permalink Reply by Grice on
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First, confirm if the lease is for a complete 5 year term, or a 3 year (with a 2 year renewal option).
The length of the lease, provides a "time frame" for which production must begin. If production begins within 3 years, you will be held to the lease for the remaining time in which production exist, and a following 10 years upon the abandonment of production. With the current expectations of the HS, there is good chance of production to begin within the first 3 years. If so, it would not matter if the lease were for 3/2 or 5 years, you will be held by production. You would not be offered a renewal bonus after 3 years (3/2 lease) if production does begin within the primary (3 years) of the lease. Basically, a 5 year lease will only allow more time for the company to begin production.
Also, I would be concerned with other potential legal ramifications of you breeching your contract with the HOA. While the reimbursement to the lawyer is geared to deter people from breeching their contract, it may not immune you from other legal actions.
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Permalink Reply by Grice on
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While I usually try not to tell anyone what they should or should not do, but simply attempt to offer ideas that may "help" them decide, I would have to agree with you here.... "Sign the deal".
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Permalink Reply by Coyote Ugly on
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I know what I'd do. But what do I know. I signed 2yrs ago for 125.00. That is my perspective on it. Good luck on it, whatever you do.
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Permalink Reply by old as dirt on
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I am a person that believes you are only as good as your word. $17,500 is probably more than you ever dreamed of getting from leasing your land. In February, I would have been thrilled with a $200 lease. Do as you wish, but I like you don't have much time before my dirt turns to dust. So if someone wants to make an old man happy I can guarantee you I would lease 150 acres for $17,500 an acre. Bring it on!
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Permalink Reply by Snake Stewart on
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A "not as good as" lease with your word given is far greater then an outstanding lease with your word broken. Hang in there "O.A.D" , its on its way ! Two permits due north of you with 2 wells on each permit !
2 CV and 2 Haynesville.
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Permalink Reply by old as dirt on
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I agree you still have to have a good lease no matter the $ amount.
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