They are indeed going door to door. A landman contacted me about a lease. During our conversation he told me that he had gone to several of the neighbors houses also.
Bently-Indigo, Section 28, T4N, R5W
He offered $150 per acre lease. I read that that is low. I am not educated in this so I don't know what a fair price is per acre.
Building on the comments of this AM as to the issue in question.
As Skip will probably attest, some people will sign these apparent low ball leases while others will counter for better terms - that is just the nature of the "leasing machine" no matter where you are. This will be along process (leasing) with a lot of negotiation and back and forth communications.
Remember that the brokers (and operator) are wanting to lease for the lowest terms and lowest royalty possible - they are not there to give away present or future money (via royalties). But they will draw a line somewhere - they have a ceiling as to what is to be spent and their well economics are tied to this ceiling.
So it is a poker game.
One of the issues in play is knowledge (or lack there of). The broker / operator holds all the cards and knows everything while the individual landowners are in the dark.
Something to consider - via various communication effort, one can try to promote a "group meeting / town hall meeting" or at least a group discussion among the area landowners to share and pass along info as to lease offers and what is happening.
Of course, there will always be those who don't want to share info but this is worth a try.
Just my opinion on this whole issue from my perspective and history with leasing activities.
Jay Calk
Sep 7, 2018
Christie Jones
They are indeed going door to door. A landman contacted me about a lease. During our conversation he told me that he had gone to several of the neighbors houses also.
Bently-Indigo, Section 28, T4N, R5W
He offered $150 per acre lease. I read that that is low. I am not educated in this so I don't know what a fair price is per acre.
Sep 16, 2018
Rock Man
Building on the comments of this AM as to the issue in question.
As Skip will probably attest, some people will sign these apparent low ball leases while others will counter for better terms - that is just the nature of the "leasing machine" no matter where you are. This will be along process (leasing) with a lot of negotiation and back and forth communications.
Remember that the brokers (and operator) are wanting to lease for the lowest terms and lowest royalty possible - they are not there to give away present or future money (via royalties). But they will draw a line somewhere - they have a ceiling as to what is to be spent and their well economics are tied to this ceiling.
So it is a poker game.
One of the issues in play is knowledge (or lack there of). The broker / operator holds all the cards and knows everything while the individual landowners are in the dark.
Something to consider - via various communication effort, one can try to promote a "group meeting / town hall meeting" or at least a group discussion among the area landowners to share and pass along info as to lease offers and what is happening.
Of course, there will always be those who don't want to share info but this is worth a try.
Just my opinion on this whole issue from my perspective and history with leasing activities.
Sep 16, 2018