Replies to This Discussion

Permalink Reply by Terry L. Antee on July 30, 2009 at 9:35

I have some land in 17N-10W and I got the same thing a 3 year lease with ($3000) 2 year option at ($1000) an acre and I had two different companys biding. I though it was a good deal.

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Permalink Reply by Henry on July 30, 2009 at 10:51

Patricia,
I won't offer an opinion on whether $3k/25% is a good deal or not. But I will suggest you read the many leasing discussions for ideas as to things you might want to include in your lease. You are not obligated to sign the "standard" Petrohawk lease. You can ask for other terms. Some of the more popular terms include: No surface rights, cost-free royalties, limits on the length of time a well can be shut in, vertical Pugh clause, etc. Read up, and decide what is important to you, before you sign a lease.

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Permalink Reply by mike wilson on July 30, 2009 at 11:09

what is the section , township and range? Thanks

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Permalink Reply by Patricia Murray on July 30, 2009 at 11:40

I'm not sure exactly if this is what you are asking for but papers say: located in section 9, township 16 north, range 11 west. It also said Elm Grove Plantation No.15 Well (serial No. 229326) thanks

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Permalink Reply by Olivia on July 30, 2009 at 12:26

Definitely try to negotiate a bit. We're in a different section, etc., and that can make a huge difference in the offer, but last year our first offer was for $1500. When our father (on his deathbed!) found out that his cousins were getting more he called and said bluntly that his cousins got $4500/acre and that's what he wanted too. They met his offer. So check with neighbors or anyone else in that area and make sure your offer is similar to theirs, and don't be shy about saying that "so and so is getting this much" and letting them know you'd like the same amount. The worst they can say is no, the best they can say is yes.

Good luck!

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Permalink Reply by Parkdota on July 30, 2009 at 12:36

The best recent offer I've seen in the Haynesville Shale area is $6,550/acre. I don't know if it varies from region to region, though. This price was in Gloster, LA.

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Permalink Reply by Mac Davis on July 30, 2009 at 12:55

Don't forget that you don't have to sign a lease to get paid royalties.

In theory, you get paid more money if you're unleased than if you're unleased once the well is paid off. A lot of people believe that the operating company will cheat you if you're unleased.

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Permalink Reply by Patricia Murray on July 30, 2009 at 13:32

Thanks for all the responses. We are in the rural arean ot in Doyline but mail goes through there. Yes those are the right numbers, they have pretty much gotten leases on 80% and it is already going to happen soon. The major land owners are already leased and we are getting better then them. Petro wants to drill befor their leases are up next May. Yes, they are just tying up the loose ends now and I don't think they care if we sign or not. It want hold them up so they don't have to negotiate. We have decided to go ahead and sign. Hope we don't regret it lateer but, I do know the major land owners are only getting 18%, they just have most the land and are going to have the road on their land which will be even more money.
Pattie

P.S. Thanks again for all your responses.

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Permalink Reply by Horseshoe Girl - a1 on July 30, 2009 at 18:20

Pattie,

That isn't a bad deal on your lease, but what Henry said is KEY. You need protective clauses and addendums on your lease. All of the clauses in that lease are designed by the Pethawk legal team to work for Pethawk. Petrohawk is good about allowing the lessor to add some clauses to the lessor's benefit. No surface operations, Vertical Pugh clause, No transport fees clause, Shut-in limits -- all work for the lessor. Ask your neighbors with the majority acreage tracts if you can use a copy of their Exhibit "A" (--attachment to lease: has property description, addendum clauses, and SIGNATURE LINES.) Make sure your Exhibit "A" is referenced in the body of the Lease itself. Also, ask your landman to get you a recorded copy of the lease. The clerks office should put the Instrument File No. on each page of a recorded copy. That way you are insured that its all on record.

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Permalink Reply by Horseshoe Girl - a1 on July 30, 2009 at 18:22

Sorry, Pattie! That's assuming your neighbors with large tracts leased to O&G added an Exh "A" to their leases. Surely someone had the foresight to do so!!

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Permalink Reply by Mac Davis on July 30, 2009 at 22:14

If you're not sure you own the rights, be sure your lease does not require you to "defend the lease" or however they word it. i.e. You don't pay any legal bills for them if there's a dispute about ownership. Actually, you should probably not agree to that in any case.

Definitely be sure that they have NO rights to access the surface at all.

Be sure there's no automatic extension clause.

Do not grant exclusive rights to do seismography. In fact, I'd say not to grant any blanket seismographic rights in the lease. If someone wants to do seismography, require them to negotiate with you each time.

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Permalink Reply by Major Bonnie on July 31, 2009 at 1:05

If you do not get protective clauses you are asking for, you may be better off to be forced pooled. The amount they are offering you appears to be chunk change. Check some of the coaltions around you such as East 80 Oil and Gas Coalition.

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