This Gas Leasing Stuff: For Every Move There is a Counter
As most of you know or have heard, Twin Cities has decided to only negotiate with individuals abandoning their previous policy of working with coalition groups. Beyond the additional issues of forsaking relationships which had been developed, and what seems to be a tendency to play loose with their commitments (a PR nightmare), as a private company, they are permitted to implement any policy they desire. But, surely they realize that for every move they make, there is a counter move by the party on the other side of the negotiating table – that being us, the landowner.
Twin Cities has decided to use market forces – a recession and depressed natural gas prices – to bring leverage in their negotiations with the landowner. We had the leverage when prices were soaring which allowed us to command a better leasing bonus and more favorable contractual terms. However suddenly, we find ourselves with an uphill climb – but does this mean we just give in and crown them as King? NO WAY!
My advice as a fellow landowner is to pick yourself off the ground and knock the mud off your knees and regain a second wind. Do the lease bonus prices suck – yes. Do natural gas prices suck – yes. Do 5 year leases with a 5 year option to renew suck – certainly. However, it’s time to put things into perspective and look at the big picture. This is indeed a marathon and not a sprint. If you have your eyes on that boat you want or even that retirement fund you want to fill then you lose. However, if you use long term vision and your goal is to enhance the livelihood of your children, or even your children’s children, then you will win. It’s that easy. Even Chesapeake Energy can’t compete with that.
"It's our new policy for 2009, and what we are doing is, we're giving the individual lessor the opportunity to negotiate on their own behalf for their own oil & gas mineral lease." THE STORY
Director of Community Affairs
Don’t you love how he uses the word “opportunity”….? Last time I checked, they were seeking to lease our land. Surely the opportunity is on both sides.