landowner

Can someone answer a few questions about activity in St. Helena?

Our property is in the southeast portion of St. Helena Parish and has been under a lease since 6/12 with an option to extend in 6/15.   We are leased to what we think is a speculator and we, along with several other neighbors, are already being contacted by our Lessor.  They propose that instead of them executing the option to extend the lease in 6/15 through 6/17, they will not extend the lease at that time and are wanting to execute a new lease exactly like the first; for three years and an option to extend for another two.

Besides adding a year to their initial lease, the only difference is the bonus payment.  If we agree to the new lease they will pay us only $100 more per acre than what they will pay on the original lease by extending it for the last two years. 

My thought is that the additional $100 is great but why in the world are they contacting us more than 9 months before our original lease expires in 6/15.  If we agree to their initial offer they want a signed commitment from us now and will forward us 10% of the bonus payment they will pay in 6/15 when we can actually sign the new lease. 

I'm extremely concerned that they know something about what might happen in the next 9 months that would make them want to negotiate now.  We certainly don't want to be greedy (half of something is better than all of nothing) but we don't want to be taken advantage of either.  We just want a level playing ground and to be treated fairly in these negotiations.  Lol, are we asking too much?

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landownerPermalink Reply by marilyn warren on September 23, 2014 at 10:30

Actually, if we don't commit to redo the lease now or anytime between now and when the initial period is up in June of next year, we have no idea if they will still exercise their option to extend for the last two years.  Sorry, I didn't explain that very well.   Not knowing also factors in on our uncertainty of what to do.  Think we'll just hold tight for a while.  Thanks again to everyone that responded!


Oil & Gas ProPermalink Reply by Dion Warr, CPL on September 23, 2014 at 16:45
cs:

For someone who has posted elsewhere in recent memory that it was is written, rather than what is said, between the parties that matters in a legal agreement, I find your interpretation rather convenient, to say the least. You know as well as I do that the Lessee could send a check the day before the extension payment is due via certified or registered letter (return receipt requested) via the terms of most standard lease arrangements and the lease is extended, no matter what the Lessee stated today they might do. Is it their right under the current contract to do so, no matter what is said today, yesterday, or tomorrow.

The poster asked for advice on a proposal made by their lessor (in which is was stated that an intention to not pay the extension, but instead take a new lease at new terms at the end of the primary term, a portion of bonus to be paid up front,) not a psychological assessment of deal dynamics. The fact that Marilyn came here (probably elsewhere as well, GHS does not profess to be the a burning Bush) means that she is not setting herself to be "gamed". Other posters (including myself) gave opinions on either what to do, contribute info as to the supposition of a speculative interest, or an analysis of what they were proposing. You, instead, made it a platform to assail the offer by crying "fraud in the inducement" (inflammatory and erroneous) and then crawfishing from it ("but there appears to be nothing illegal here... but it's near the zone[?!]"). Let's face it: you knew exactly what you were doing, and backing away from the charge doesn't amount to you not saying it. Did anyone here say "OMG?! Take the money before it's gone?" No.

Honestly, I could care about as far as I could throw you about your anti-industry rants, your pointless and/or off point non-sequiturs and google-informed knowledge of what I do for my profession; it's almost amusing in how severe your slant is. I find less respect in you for taking jibes at people that know their business and are willing to take the time to respond in a sincere and informative manner (even if they are informed by their experience in the oil and gas industry), and stand behind what they say in their own name, while you lob verbal grenades from behind the anonymity of a very a propos forum identity. But as you refer to me being out of line, let me point how much of a waste of time it is for the average poster, just wanting to post a question, and get some basic information, to wade past the drivel that you post here, only to find out that there is not much behind it but some skewed, inflammatory and/or pointless rhetoric, or the cheap, CHEAP, shot.

You think I'm out of line? Fine. You stick to the sarcastic jaded rimshots, and I'll get back to substantive commentary, analysis and advice. If you can live with that, so can I. Maybe then we can try to get a working consulting geologist back on the site for advice too, rather than running them off for all the rampant "shoot the messenger" stupidity.

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