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landownerPermalink Reply by benny688 on August 5, 2010 at 15:46

I am a landowner and not a landman, but to answer your question, it is always best to pay a mineral attorney on your side to establish a fair price under current market conditions. The attorney's fees have always been minor compared to the gains. I would never negotiate with a landman directly.

GLTA

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Oil & Gas ProPermalink Reply by The_Baron on August 6, 2010 at 3:11

Not every landowner will want an attorney, it would depend on the individual situation.

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landownerPermalink Reply by Frank on August 5, 2010 at 16:03

I negotiated my price after the bottom fell out and offers were withdrawn. I had leverage from total acres, but they are scattered all over the place. I'm luck that the operator had interest in all of them. I can't disclose the bonus, but the attorny said it was one of the best he has seen recently. It took over a year to get where I closed. I was still below what I wanted, but I couldn't walk away either. A one acre trailer lot won't give you much leverage. You need a couple of trailer parks to get that.

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Oil & Gas ProPermalink Reply by The_Baron on August 6, 2010 at 3:10

There is no family secret.

A company will want to make a profit on their prospect. Based on their interpretation of the geology, they will figure the developemnt cost and land costs (including the net revenue intertest they need), the result will be an amount they are willing to pay.

Landmen do not get the "leftovers".... if any one is paying landmen this way let me know!

Landmen typically work as contract employees (some are in house on a salary) working on a Day Rate. Landmen work to aquire acreage on terms acceptable to their employer, the better they do, including the speed they can run title (with accurcacy) the better chance they have of getting more work from the same employer.

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