I signed an agreement with Arnie Castenello this past week, so I can give you the information you want. He is a CPA who has been in the O&G business as well for about 20 years. He has 7 acres over on Shreveport-Blanchard Hwy, and when he started receiving low offers, he contacted a O&G attorney friend of his and they got together to "negotiate" a pooling lease with a major O&G. Because he is acting as a contract negotiator, he does receive 5% of the bonus ONLY. No royalties from the landowner goes to him AT ALL at any time. No one has signed the actual leases yet. We signed a contract with him stating that we would include our land in the "land pool" so that he would have an accurate total of acreage to take back to the company in the negotiations. We should have the lease to sign in about 30 days, I believe along with a check (not a bank draft.)
Anyway, the option was open to anyone owning their mineral rights in 18N15W, any section. And the amount we agreed to take was $15, 250 per acre plus 25% royalty. The O&G company pays Castenello's 5% of the bonus off the top, so each landowner is really getting $14,487.50 per acre, and that is all we will be taxed on (not the 5% that was paid to him, which I also liked). Last I had heard, the offer was good through last Wednesday night of this week, at which time he had to turn the total acreage amount over to the company, and it was over 1,200 acres on Monday, with more people signing each day up until that deadline.
I replied to you directly b/c there seem to be a few people on the Board who have some bad things to say about Mr. Castenello and I really didn't want to post this and then have it followed by lots of negative comments about how he is a "conman", etc. I met with him, as did everyone else who pooled their land and he seemed like a very honest person, and was much more knowledgable than the landman who had spoken to our neighboorhood the week prior when we were offered $7,500 per acre (whose company also has public records of leasing for that amount and then leasing it to the O&G for more than twice that.)
Before I learned about this Castenello deal, I had emailed every O&G company with my property description and asked if they were intersted in leasing my property so I could get the best deal. I also read this Board every day, almost nonstop, and became very educated on who was being offered what where. The morning after I turned in my paperwork to pool my land LITERALLY, I received a call from XTO in response to my email. I told him I had committed my land, but had not signed a lease, (and wasn't obligated to if I had a better offer). He told me that there was no way they could top that deal, and that I did well to get that where we are. It made me feel better, because I was afraid he was about to offer me $30k or something!!!!
Anyway, it is best deal I ran across even with the 5% off the top, which doesn't bother me in the least. I feel more comfortable that way, actually, b/c these 2 guys know the laws, what they are doing, and Mr. Castenello will be signing the same exact lease we are all signing since he has land in 18N15W also, so I can't see how we can go wrong. It may not be the best choice in some opinions, but everyone has to make an individual decision in this game of chance. For me, my offer went from $7500 to over $14000 in less than 5 days, and I took it. I wanted it least $10K, so I was happy with it. I just wanted to make a decision so the drilling could begin!!!!!! That's what I want to be able to look forward to!
Arnie Castenello 688-8299 (You can call and find out if the offer still stands.) And good luck to you in all of this :) Jeanie
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I signed an agreement with Arnie Castenello this past week, so I can give you the information you want. He is a CPA who has been in the O&G business as well for about 20 years. He has 7 acres over on Shreveport-Blanchard Hwy, and when he started receiving low offers, he contacted a O&G attorney friend of his and they got together to "negotiate" a pooling lease with a major O&G. Because he is acting as a contract negotiator, he does receive 5% of the bonus ONLY. No royalties from the landowner goes to him AT ALL at any time. No one has signed the actual leases yet. We signed a contract with him stating that we would include our land in the "land pool" so that he would have an accurate total of acreage to take back to the company in the negotiations. We should have the lease to sign in about 30 days, I believe along with a check (not a bank draft.)
Anyway, the option was open to anyone owning their mineral rights in 18N15W, any section. And the amount we agreed to take was $15, 250 per acre plus 25% royalty. The O&G company pays Castenello's 5% of the bonus off the top, so each landowner is really getting $14,487.50 per acre, and that is all we will be taxed on (not the 5% that was paid to him, which I also liked). Last I had heard, the offer was good through last Wednesday night of this week, at which time he had to turn the total acreage amount over to the company, and it was over 1,200 acres on Monday, with more people signing each day up until that deadline.
I replied to you directly b/c there seem to be a few people on the Board who have some bad things to say about Mr. Castenello and I really didn't want to post this and then have it followed by lots of negative comments about how he is a "conman", etc. I met with him, as did everyone else who pooled their land and he seemed like a very honest person, and was much more knowledgable than the landman who had spoken to our neighboorhood the week prior when we were offered $7,500 per acre (whose company also has public records of leasing for that amount and then leasing it to the O&G for more than twice that.)
Before I learned about this Castenello deal, I had emailed every O&G company with my property description and asked if they were intersted in leasing my property so I could get the best deal. I also read this Board every day, almost nonstop, and became very educated on who was being offered what where. The morning after I turned in my paperwork to pool my land LITERALLY, I received a call from XTO in response to my email. I told him I had committed my land, but had not signed a lease, (and wasn't obligated to if I had a better offer). He told me that there was no way they could top that deal, and that I did well to get that where we are. It made me feel better, because I was afraid he was about to offer me $30k or something!!!!
Anyway, it is best deal I ran across even with the 5% off the top, which doesn't bother me in the least. I feel more comfortable that way, actually, b/c these 2 guys know the laws, what they are doing, and Mr. Castenello will be signing the same exact lease we are all signing since he has land in 18N15W also, so I can't see how we can go wrong. It may not be the best choice in some opinions, but everyone has to make an individual decision in this game of chance. For me, my offer went from $7500 to over $14000 in less than 5 days, and I took it. I wanted it least $10K, so I was happy with it. I just wanted to make a decision so the drilling could begin!!!!!! That's what I want to be able to look forward to!
Arnie Castenello 688-8299 (You can call and find out if the offer still stands.) And good luck to you in all of this :) Jeanie
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