Replies to This Discussion

Permalink Reply by Jack Blake on May 21, 2010 at 2:51

You can get "no surface use" and you want it so you can then get plenty more money for pipeling ROW agreements. Jack put in his initial mineral lease that they could put a single P/l, but it could only be used as a gathering line for wells IN MY SECTION (knowing almost certainly that if they put a gathering line on my land it would transport more than just gas from a well in my section). Jack was cypherin' things out ahead of time. I wish I knew all then that I know now!!!!!!!!!!!!!!!!!
Jack should be a lease negotiator as he has learned alot and a lawyer is not really 100% interested in getting you the best deal no matter what you pay him. He has other things to think about, like who to charge his drinks and lunch to and who he can get a percentage from for negotiating a lease and really all he is doing is getting you to sign so he can get money that should have all gone to the land owner. (Jack Blake could be wrong, but ask yourself what you think of any Lawyer you have ever dealt with or talked to).
It is good to be in the corner of a section as far as getting paid for pipeline gathering lines on your land (because your land borders three other sections) so you have a better chance of getting pipelines. Jack Blake was paid for a ROW down two sides of his land (he has only 20 acres) for gathering lines.
The landowner has to ASK-ASK-ASK THE EXPERTS and have sense enough to weed out who knows their stuff and who is blowing smoke. LEARN-LEARN LEARN and you can manage your HS blessing wisely!
Jack Blake has spoken-(DISCLAIMER) he could be wrong, but this is how Jack sees things.
GHS cried Jack Blake!

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Permalink Reply by Shaleeee on May 21, 2010 at 3:34

Jack, you hit on what I fear about using an attorney - that being that my lease will be just one of many and of no personal interest - a pay check - I want to know enough about what is important in a lease to make sure (if possible) that my interest is being protected and not just a computer generated lease with my info inserted - everyone points out you have to live with this lease a very long time. Great news about the possibility of a pipeline on a corner lot. I enjoy your post - you give us a much needed laugh. Thanks

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Permalink Reply by Skip Peel - Mineral Consultant on May 21, 2010 at 3:52

Guys. IMO, there are lawyers and then there are Oil & Gas lawyers. And the difference between the two is often huge. The Shale has been a big incentive for lawyers with absolutely zero O&G experience to do a quick brush up on LA. Mineral Codes and go out looking for some shale clients. Many would tell you it's their negotiating experience that recommends them for this work. I would heartily disagree. Like the personal injury lawyers that advertise on television and are never seen in a court of law, those lawyers taking shale related business are anticipating a quick buck for a little work. There are two challenges in finding a qualified and experienced O&G attorney. Finding one, or a firm, that does not have a conflict of interest as many perform quite a bit of industry work and finding one that can fit you in their schedule. As you can imagine the really good ones are very busy. The ones that I know will provide an initial conference at no charge. If you choose to retain their services, they will charge by the hour in the majority of cases and give you a projection of the number of hours they think will be involved. The biggest and most avoidable of mistakes in managing your HS mineral assets is not retaining professional help when such is justified. If you let a poor opinion of lawyers in general or the fear of the cost dissuade you from seeking that professional help, be prepared to suffer the consequences. For generations to come.

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Permalink Reply by Henry on May 21, 2010 at 4:26

Skip,
I think you are exactly right. The leasing world has changed with the Haynesville Shale, and the mineral owners have more power than in the past. Even if I had only 2 acres to lease, I'd get a good attorney -- the attorney can get you cost-free royalties, good shut-in provisions, surface protections, pugh clause, etc. That would easily be worth the cost of several hours work.

Permalink Reply by Jack Blake on May 21, 2010 at 7:36

Jack Blake would like to have a good oil & gas attorney to review things for him, but he has not found one. If you have a good one, by all meams use him. Two were recommended to me on GHS. The one in Shreveport did not return my calls and the one in Alexandria just added a couple minor changes to a P/L ROW agreement for me.
Jack was very lucky to have a friend who was a landman prior to the HS leasing frenzy who advised Jack on his initial mineral lease. The only mistakes I see I made were I could have got better S/I terms and about three times the bonus payment(if I would have waited about 60 days, but who could have known bonuses would get so crazy.) My landman friend told me to never take the first offer, but Jack could not help it. He had to take the money, in case everything imploded. Jack thinks the guy at CHK, McLendon or whatever his name is is a promoter and Jack thought everything would come crashing down and Jack could get left with no bonus.
Jack Blake needs to take some time and write a couple documents about what to ensure you have in a lease and what to ensure you have in a ROW agreement. He'll try to do that one day. Some of the things people tell you to ask for you will never get so there is no need to ask. Now you do want to ask for a few things you know they will not give you so when they say no you can say OK and they see you will give and take.
NEVER EVER EVER SIGN A STANDARD LEASE OR ROW AGREEMENT THEY PRESENT YOU. Add an addendum page to the lease.
On P/L ROW agreements they seem to want to just alter their standard ROW agreement so they can ust the plats as exhibit A. They will add many things into the standard ROW agreement and take some of the initial items out of it if you negotiate.
Jack has thunk

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Permalink Reply by Shaleeee on May 21, 2010 at 9:46

Jack, I know it would be a lot of work to write what should be in a good lease but please do think about it - think of it as your donation to the less informed. (Me)
Thanks

Permalink Reply by DJG on May 21, 2010 at 8:33

Pretty good starting checkpoint list on items to ask for can be found in this document from the Texas Land Mineral Owners Assoc. website:

http://www.tlma.org/oilgasleasechecklist.pdf

Most of the items detailed there are common terms that the O&G's are used to negotiating.

Do, however, plan to have a competent O&G attorney look over the final documentation of your lease prior to signing/executing. The relatively modest amount spent now on that front will certainly pay itself back in multiples over the long-term production of your minerals.

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Permalink Reply by DJG on May 21, 2010 at 8:34

Also worth it for you to read over Kassi's "Lease Basics" info on this site as well:

http://www.gohaynesvilleshale.com/notes/Natural_Gas_Leasing_Basics

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Permalink Reply by Shaleeee on May 21, 2010 at 12:35

D. Gaar - Both sites are great - especially the oil & gas check list - thanks so much.
Shaleeee

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Permalink Reply by Jack Blake on May 21, 2010 at 13:57

Power to the people was the rallying cry of the day howled Jack Blake!!!!

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