Replies to This Discussion

Permalink Reply by Todd M. Baker on February 10, 2009 at 10:33

I've put it in many a lease in limiting form. As with other strange clauses, if you want them in your lease, you will be the one required to "police" it. You want something- you should have to work for it.

TMB

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Permalink Reply by intrepid on February 10, 2009 at 10:40

"As with other strange clauses,..."


I think that sums it up.

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Permalink Reply by BMW42 on February 10, 2009 at 11:36

Yes, some of you are harsh. I am not exactly sure where the land is at this point except that it is in Logansport. We just found out that we are heirs to it. We are from Dallas. I am not sure of the company we should be aware of other than Chesapeake; as, I am new to this. My husband just spoke with the landman this afternoon, and the only information we have at this point is: 3-year lease, 25%, $3500 per acre, by Chesapeake.

I truly appreciate the responses to help me out. It has enabled me to streamline my research instead of "searching in the dark".

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Permalink Reply by Cathaus on February 10, 2009 at 11:44

We are harsh because we are jaded! Keep reading GHS. You will learn more than you wanted to. The $3500 is the first offer. I would tell you to think seriously about a counter offer. Why don't you throw a figure at them and see what they say?

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Permalink Reply by intrepid on February 10, 2009 at 12:30

BMW42,
We'd just hate to see you screw yourself out of something that could be good for you because you get hung up on a 'favored nations' clause or try to haggle up to 27% when it probably won't happen.

Do you only own the mineral rights or do you also have the surface?

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Permalink Reply by BMW42 on February 10, 2009 at 13:20

Hello, we also own the surface rights.

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Permalink Reply by Anna Mauck-Member Services on February 10, 2009 at 13:02

Does the Landman work for Twin Cities? If not who?

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Permalink Reply by BMW42 on February 10, 2009 at 13:21

I am not sure. I will have to find out. I think we both assumed that he worked for Chesepeake. If he does, is this bad?

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Permalink Reply by WHuguet on February 10, 2009 at 13:57

I agree with some that it won't hurt to counter and I also agree with Krow that they are probably about to drill your section (unit), which gives you a little leverage.

As for favorite nations, that is almost certainly not worth the hassle. But some of you guys need to realize that these can be made palatable or changed by the company to be all but meaningless. If you are going to have a chance of getting one it will likely have to be very limited in time and scope. Like any contractual negotiation, it seems logical or "fair" to maybe limit the favorite nations to within the next 6 months and to any other tract located within 1 mile of your property and comprising less than 10 acres . . ., but I still don't think it's likely to happen.

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Permalink Reply by Snake Stewart on February 10, 2009 at 14:12

Favored Nation could/would be skated around anyway at this point.IMO
Next to impossible to prove the way leases are filed at the courthouse.
Dont leave anything up to chance. Do your work and get the best deal that you can at the time that you sign.
Leaving it up to your neighbor to get the best deal possible, shucks your own personal responsibility for the outcome that would best serve your families needs and seems mighty risky to me.
Good luck.

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