Replies to This Discussion

Permalink Reply by Dion Warr, CPL on January 24, 2009 at 5:42

Ray:

Do you need any cash money for something anytime soon?

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Permalink Reply by RAY on January 24, 2009 at 6:48

my first impression was :
they wanted to buy 1/8th of 25% for $3000.

but after re-reading the letter;
they want 1/8th royalty ....which is half of 25% of royalty .

they are trying to catch people in financial turmoil and any lifeline of $$ would be a welcomed sight.

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Permalink Reply by Dion Warr, CPL on January 24, 2009 at 11:26

Ray:

The reason that I ask is that dealing with royalty, there are two things to consider, besides the cash:

1) Whether the royalty deed will be subject to the existing lease, or be a covenant running with the land, and

2) Whether you would wish to sell a portion of your rights to receive royalty.

If the royalty deed lives and dies with the lease, then you would be hedging against non-development of the lease. This may be worth considering, particularly in the down-market environment, if your lease is of limited remaining primary term. If no operations occur to hold the lease, the royalty deed would be extinguished at lease expiration. If the royalty deed becomes a covenant running with the land, its term of existence is at minimum ten years, or as long as good-faith attempts at operations and/or production continue without a lapse of greater than ten years. This of course would diminish your reward in receiving upfront payment for your royalty.

You can opt to sell a portion of your royalty, thus hedging your position by a partial sale of your rights while not conveying all of your rights to receive royalty. You may also inquire about selling royalty for a term of less than ten years, or at specific formations. Certainly the royalty buyer may not be interested in such terms, but it may be worth asking about.

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Permalink Reply by BirdDawg, plain ole' idiot on January 24, 2009 at 11:28

Very good advice, Dion.

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Permalink Reply by Iris on January 24, 2009 at 11:57

This all sounds very interesting. But Ray & Dion is it worth an attorney's fees for checking it out?

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Permalink Reply by Dion Warr, CPL on January 24, 2009 at 17:15

Tiger:

At $3000 per acre, if one wishes to take the offer and do anything but use the paper upon which it is written as a kleenex, I would think so.

As has been preached elsewhere on this site: do some soul searching, some research, and have or hire someone that you trust (lawyer, landman, or someone) give you some good advice. Some folks that blew off offers of $15K - $20K per acre for a lease that wander this site sure wish they wouldn't have just rejected such offers out of hand. On the other hand, they are a fair amount that still sleep soundly in the belief that such offers will return, or even increase, at some point down the road, and are in no hurry.

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Permalink Reply by sesport on January 25, 2009 at 2:21

And there are those of us that have urban lots, not much but it's our investment, that want to make sure we have good leases so our neighborhoods don't take a hit in the comps pocket. Thanks again, Dion.

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Permalink Reply by BirdDawg, plain ole' idiot on January 24, 2009 at 14:03

Gosh Darn,
First off, I find it very offensive for you to repeatedly call me "kid". Hence I will refer to you as "old man". This is due to a total lack of respect for you, which you have earned.
Yes I did disagree with you before, and then I let it go. I have the right to post any opinion I have, as I did today. And I made no disrespectful comment toward you. So, once again, you are wrong. As you said, the record is here to read. I DID NOT start this. You did. I only made a post that basically disagreed with what you said.
You then posted numerous LIES about me for all to see. It is not my temper that caused this. It was your lies. And thats a cold hard fact.
Remember, I also had let you be, old man.
I don't need to be taught about respect by you. You never even told me you were an old man (gotta protect that privacy). You have just made it obvious by repeatedly calling me "kid" old man. I am not a kid. Just another one of you lies. But you are obviously and old man. I have nothing against old people of any sort. I was taught respect by my parents. But I don't give a dang what you think about it.
I do respect your privacy. You are the one that posted lies about me. Anyone would know that I am the one that should make that choice about what is posted about my private life. The only reason you know these things is because I posted them on this site.
And yes, GD, my life has been threatened on several occassions. I have looked down the barrel of several guns, often times with a drunk man holding it. My job has put me in harms way on many occasions. But that doesn't make me want to hide from anybody.
And no, I am proud to say I have never had to work for any state or federal government in any capacity. And for the life of me, I can't see what that that to do with anything. But that is what I have come to expect from you.
And by the way, I just love the way when you ask a question, you always answer it before I have a chance to.
Maybe you should learn from that, because you have been wrong most of the time.
And me referring to myself as an "idiot" is clearly a self direct joke, obvious to anyone but a real idiot.
And I don't need you advice about identity theft, or anything else for that matter.
I'm not taking my game to anybody, only defending myself from your lies.
And I could give a flip about your wit or your intelligence, old man.

Good Day,
BirdDawg, definitley not a "kid", to GD who is definitely an old man

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Permalink Reply by Bobi Carr ("parker") on January 24, 2009 at 15:59

Y'all two could just settle it at the bowling alley.

I would bet that you two would be the "bestest" of friends afterward.

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Permalink Reply by BirdDawg, plain ole' idiot on January 24, 2009 at 16:56

Gosh Darn,
Are you implying I'm drunk? Once again, a lie. I have not had drink in quite a while. Probably also why I am not angry as you said. In the past, maybe. But you are dead wrong, and for that you owe me an apology. And you didn't use the word "assume".
I don't act like a kid, nor will I tolerate being treated like one.
And when I look in the mirror, there is no reason for me to see a bully. I am not one and never have been one.
I have reviewed this thread...sober...as I have been since it started, and have determined exactly what I previously said. I rather politely (by this sites standards) disagreed with your post. And you did attack me personally. I don't care about the legal aspects, This is not a court case.
I think it rather pathetic to post personal accusations on a public forum and then hide behind the word "assume". You said it publically, and it wasn't true. Just like you implied I am drunk tonight. And you didn't say "assume". You didn't say I was drunk but you clearly implied it. And that IS an out and out lie. Another one of your assumptions.
Oh, and by the way, I am not so stupid to be referring the the facts that I am 53 and live in Ruston. Those statements are hardly offensive, and I don't think anyone (including yourself) even remotely thought that was what I have referred to.
And I act no more like a kid than you do.

Now, you can rest assurred that I know that carrying this any farther will serve no constructive purpose. So I am done. I quit. So when you go to bed tonight, pat yourself on the back, and say "I told that kid. I implied he was a drunk and a bully. Even though it was lies (which all I have to do is say I didn't say it, or I said "assume"), I can go to bed tonight knowing I impressed everyone on this site, for I am the all knowing."

Good night Gosh Darn, enjoy your sleep.

BirdDawg, I have no trouble sleeping

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Permalink Reply by fox on January 25, 2009 at 4:03

Gosh Darn---I have enjoyed your threads. BirdDawg, I have equally enjoyed yours.
You both sound like the same guy to me.

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Permalink Reply by sesport on January 25, 2009 at 5:06

I'm not 100% certain, but I wouldn't believe so based on the writing style.

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