I would like to get some input from you folks on an idea I had recently.  I don't know much about the structure of land leases but I have noticed many people on here who lease their minerals in the Eagle Ford.

 

A little background real quick.  My company manufactures, sales, and installs natural gas treating plants.  I spend quite a bit of time wining and dining executives who are leasing your minerals.  As such they may, buy my equipment.

 

Could I pay a "finder's fee" or give some sort of incentive to land owners in exchange for a clause added to their contract that allows them to stipulate or "approve" the design of the gas treating plant that will be installed on their land?  They could add this clause during contract negotiations.

 

Rather than blow our sales budget on executives, I'd like to get that money to the people who really matter, the land owners.  I'm interested in any suggestions that can get my product sold through the land owner so I can pay them to tell the executive what he has to do.

 

Any thoughts?

 

Thanks...

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That's a good point.  My equipment doesn't actually have anything to do with completing or plumbing the well though.  Gas treating equipment goes on the well later.  It is the equipment that gets the gas to pipeline quality.  The neat thing about my equipment is that it is minimally invasive to the land.  Some equipment must have a concreate pad poured and all sorts of stuff that can really mess up your land once the plant is removed.

 

That's why I was wondering if they could have an "approve" clause or something that says that any plant installed must be able to operate without concreate or something like that.

Jayson,

As a land/mineral owner I agree with Jay. I don't see where putting a clause in a lease is practical. I don't think the land owners can dictate site equipment. That's usually done by company/consulting engineers. Just going to purchasing for any given company would probably be the best route. 

I could see it where if one knew the industry well and there were different technologies available with some being less invasive, noisy or intrusive than others and accomplish the same thing if it didn't dictate which company the driller had to use..

Wouldn't be right if a lease stated only Ford trucks (no chevy or toyotas) could cross the property..

Thanks for all the feedback guys.  I agree that it's just a very sticky situation but I was hopping maybe there would be a way.  I just like the idea of paying the land owner more instead of wasting it on impressing the executives.
jayson--- you need to just keep wining-dining the operator like all salesman do. JIMO

Jayson,

 

You may want to target the field operations folks/project managers.  If your system can be setup faster since it doesn't require as much site work, that might be a big selling point.  All things being equal, a few weeks faster setup can mean a lot on the bottom line from this Q or the near.  

 

Regarding landowners, If you have something that is more environmentally friendly, I'd suggest working to educate them and landmen regarding how your system is better than others.  

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