Chuck, IMO it is best to take a pragmatic view of the leasing of lands for exploration and production for what it is..... a business. There are a number of rational business reasons why O&G companies do what they do. The industry isn't going to change the way they do business because mineral owners wish it. Mineral owners need to perform their own due diligence and take responsibility for their own decisions. Land companies have no requirement to educate mineral owners and their landmen often don't know the specifics behind the offers they make. Any mineral owner who accepts the first lease offer and does not attempt to seek professional counsel is likely to be disappointed when they learn more later. In the age of the Internet and access to GHS it's relatively easy to find basic information and ask specific questions.
Mr. Peel, you make some very valid and truthful observations. My family and I were approached by our first land/person February of 2011. I had a phone conversation with him but never met him. If memory serves that was Pinebelt.
My family did sign leases with him. My primary concern with the lease was the 4 year primary with the 3 year option. At some point after that I was contacted by phone by a gentleman from Lafayette(TS Dudley)…same terms. I again stated the terms of the lease just didn’t seem appropriate. With my awareness of the Over-Riding Royalty Interest term I can now see why a long-term lease could be useful for them.
I have since contacted my land man and left the message that I was not interested in being “forced pool” and that the next time he was around to call me. I’m thinking that was the end of last year…I haven’t heard form anyone since.
But my point is this…at no time did I get the impression/feeling that these gentlemen trying to “get me”. They were all very cordial and respectful and my communication with them was not confrontational by any means.
I may ever hear from anyone again but I didn’t want my little remark to be taken out of hand. I have nothing but respect and admiration for their business/career. I have known people in this business personally over the years and I had much respect for them and their knowledge.
Herman (Chuck) Plonnigs, III
Thanks Skip for your very well articulated response. I did have a good idea of what it meant but, by all means, not all.
The more I read about this stuff the more it sounds like we’re dealing with the mentality behind running a successful used car dealership!
Thanks again
Apr 29, 2012
Skip Peel - Mineral Consultant
Chuck, IMO it is best to take a pragmatic view of the leasing of lands for exploration and production for what it is..... a business. There are a number of rational business reasons why O&G companies do what they do. The industry isn't going to change the way they do business because mineral owners wish it. Mineral owners need to perform their own due diligence and take responsibility for their own decisions. Land companies have no requirement to educate mineral owners and their landmen often don't know the specifics behind the offers they make. Any mineral owner who accepts the first lease offer and does not attempt to seek professional counsel is likely to be disappointed when they learn more later. In the age of the Internet and access to GHS it's relatively easy to find basic information and ask specific questions.
Apr 29, 2012
Herman (Chuck) Plonnigs, III
Mr. Peel, you make some very valid and truthful observations. My family and I were approached by our first land/person February of 2011. I had a phone conversation with him but never met him. If memory serves that was Pinebelt.
My family did sign leases with him. My primary concern with the lease was the 4 year primary with the 3 year option. At some point after that I was contacted by phone by a gentleman from Lafayette(TS Dudley)…same terms. I again stated the terms of the lease just didn’t seem appropriate. With my awareness of the Over-Riding Royalty Interest term I can now see why a long-term lease could be useful for them.
I have since contacted my land man and left the message that I was not interested in being “forced pool” and that the next time he was around to call me. I’m thinking that was the end of last year…I haven’t heard form anyone since.
But my point is this…at no time did I get the impression/feeling that these gentlemen trying to “get me”. They were all very cordial and respectful and my communication with them was not confrontational by any means.
I may ever hear from anyone again but I didn’t want my little remark to be taken out of hand. I have nothing but respect and admiration for their business/career. I have known people in this business personally over the years and I had much respect for them and their knowledge.
Thanks
Apr 29, 2012