Brine Lease Offers? - GoHaynesvilleShale.com2024-03-28T16:31:47Zhttps://gohaynesvilleshale.com/forum/topics/brine-lease-offers?groupUrl=casscounty&commentId=2117179%3AComment%3A4014987&xg_source=activity&groupId=2117179%3AGroup%3A450696&feed=yes&xn_auth=noI expect you are correct, Dam…tag:gohaynesvilleshale.com,2023-10-26:2117179:Comment:40504922023-10-26T18:25:12.054ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I expect you are correct, Damon. When there is money at stake, all parties will be trying to get their share. And that of any of their competitors that they can.</p>
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<p>I expect you are correct, Damon. When there is money at stake, all parties will be trying to get their share. And that of any of their competitors that they can.</p>
<p></p> This will get HEAVILY litigat…tag:gohaynesvilleshale.com,2023-10-26:2117179:Comment:40505922023-10-26T17:56:32.536ZDamon Baxterhttps://gohaynesvilleshale.com/profile/DamonBaxter
<p>This will get HEAVILY litigated. </p>
<p>This will get HEAVILY litigated. </p> You're welcome, John. Pass t…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40474022023-09-06T15:42:56.601ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>You're welcome, John. Pass the word. And suggest that your friends and family follow GoHaynesvilleShale.com</p>
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<p>You're welcome, John. Pass the word. And suggest that your friends and family follow GoHaynesvilleShale.com</p>
<p></p> Thanks Skip, that really make…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40474972023-09-06T15:28:47.860ZJohn Tannerhttps://gohaynesvilleshale.com/profile/JohnTanner578
<p>Thanks Skip, that really makes it clear and easy to understand. I appreciate it. This forum has been a blessing.</p>
<p>Thanks Skip, that really makes it clear and easy to understand. I appreciate it. This forum has been a blessing.</p> I agree but wish to point out…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40474962023-09-06T14:36:15.414ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I agree but wish to point out that leases like this are standard operating procedure by O&G operators and O&G speculators. With Lanxess announcing first production in 2026, there is no reason for lessees to offer competitive lease terms at this time or even in the next year or two. </p>
<p>When a new "play" hits the radar of insiders, their first effort is to target mineral owners with lease terms that favor the lessee or speculator. The rush is to get as many unsuspecting mineral…</p>
<p>I agree but wish to point out that leases like this are standard operating procedure by O&G operators and O&G speculators. With Lanxess announcing first production in 2026, there is no reason for lessees to offer competitive lease terms at this time or even in the next year or two. </p>
<p>When a new "play" hits the radar of insiders, their first effort is to target mineral owners with lease terms that favor the lessee or speculator. The rush is to get as many unsuspecting mineral owners to commit to a lease before the play becomes widely known, competition develops and terms more favorable to the mineral owner can no longer be avoided. This is the opportunity to maximize return on investment. </p>
<p>Although this happened in the early Haynesville Shale land rush, that period did not last long owing to the internet and more specifically to GoHaynesvilleShale.com. When the general public is informed, lessees lose their ability to target those mineral owners who are clueless to the realities of the leasing phase. Mineral owners beware.</p>
<p></p> I read that lease and asked m…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40473292023-09-06T14:21:34.072ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>I read that lease and asked myself "What am I missing?"</p>
<p>Totally ridiculous. </p>
<p>I read that lease and asked myself "What am I missing?"</p>
<p>Totally ridiculous. </p> Ditto. Thanks for posting Jo…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40474952023-09-06T03:16:07.503ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Ditto. Thanks for posting John.</p>
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<p>Ditto. Thanks for posting John.</p>
<p></p> Folks, just when you think th…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40474942023-09-06T03:10:47.332ZJoe B. Lovelacehttps://gohaynesvilleshale.com/profile/JoeBLovelace
<p>Folks, just when you think the Brine Lease terms couldn't get any worse for the Lessor, a lease like this is posted. Sign at your own risk in my humble opinion.</p>
<p>Folks, just when you think the Brine Lease terms couldn't get any worse for the Lessor, a lease like this is posted. Sign at your own risk in my humble opinion.</p> I think by "form" you may be…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40473272023-09-06T02:04:06.183ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I think by "form" you may be thinking of "term", the period of time that the agreement is in effect. O&G leases have been traditionally for a three year period or term. As unconventional O&G plays became the norm, lessees wanted an option to extend the term and the 3/2 leases terms became popular. A 3 year initial term with an option for the lessee to extend the term for 2 years by paying an additional bonus for that right. Some lessees wanted a five year term at the one time…</p>
<p>I think by "form" you may be thinking of "term", the period of time that the agreement is in effect. O&G leases have been traditionally for a three year period or term. As unconventional O&G plays became the norm, lessees wanted an option to extend the term and the 3/2 leases terms became popular. A 3 year initial term with an option for the lessee to extend the term for 2 years by paying an additional bonus for that right. Some lessees wanted a five year term at the one time bonus payment. Those changes came about because unconventional reservoirs like the Haynesville Shale could cover large, continuous areas and it was a challenge for operators to drill fast enough to hold all those leases by production within the lease term. The standard leasing terms basically challenged the industry's ability to drill them all up before they expired.</p>
<p>Mineral owners considering a brine lease should know that the Smackover lithium play is not an unconventional play like the Haynesville. The Smackover is a much more known formation with plenty of well control. Well control being historic wells drilled to the formation which provide data that can be used to make informed decisions on the prospective nature of a particular locale. The Smackover lithium play will be like traditional conventional plays where a locale that is economic will be limited in scope and size. Just as there were many "dry holes" in the days of conventional reservoir development including the Smackover, the areas that have the combination of lithium concentration and brine water volumes will be here and there and not continuous in area. This makes for a lot of risk for lessees and lessors. A bird in the hand would be the bonus offered early in the play against the two in the bush which would be a decent royalty for those whose mineral interest turns out to be in a sweet spot that is economic for lithium production.</p>
<p>Someone with a large acreage interest might be tempted to take a decent bonus offer per acre with a low royalty fraction but those with small to modest acreage would be best served to wait until more information is available. The per acre bonus dollars offered currently are chump change.</p>
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<p></p> Discussing with some friends,…tag:gohaynesvilleshale.com,2023-09-06:2117179:Comment:40473252023-09-06T01:43:37.842ZJohn Tannerhttps://gohaynesvilleshale.com/profile/JohnTanner578
<p>Discussing with some friends, neighbors and extended family this lease came up that I'm attaching and from what I understand has been making the rounds. Not sure what to make of it? Seems like your run of the mill wildcatter cut and paste job, but I really don't know enough to be sure. Is this what Cass County Brine is offering to try and scoop up as many acres as they can while mineral owners in Texas are none the wiser regarding the lithium rush upon us. Josh would this lease be…</p>
<p>Discussing with some friends, neighbors and extended family this lease came up that I'm attaching and from what I understand has been making the rounds. Not sure what to make of it? Seems like your run of the mill wildcatter cut and paste job, but I really don't know enough to be sure. Is this what Cass County Brine is offering to try and scoop up as many acres as they can while mineral owners in Texas are none the wiser regarding the lithium rush upon us. Josh would this lease be favorable to the (DLE) technology in your link?</p>