Replies to This Discussion

Permalink Reply by Hal Peyton on January 10, 2011 at 13:11

Be carefull.  Who is offering the lease?   and ask  what  the hurry is.  This could be a good deal or one sold  with problems.

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Permalink Reply by Skip Peel - Mineral Consultant on January 10, 2011 at 13:20

Section 24 - 10N - 12W is under HA unit order to SWEPI and SWEPI or Encana will operate the wells drilled in the unit.  Since the unit operator must honor the lease terms no matter the company (lessee) that Mr. jenkins (lessor) signs with under the terms of the force pooling agreement,  it really doesn't matter who J W Porter is leasing on behalf of.  It is simply a matter of lease terms.

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Permalink Reply by Henry on January 10, 2011 at 13:23

Skip,

I agree it won't matter ultimately, in terms of his payments, as long as Mr. Jenkins makes sure he has cost-free royalties.

 

But it is always good info for the rest of us to know what companies use sleazy tactics when dealing with landowners.  JWPorter only does what the company behind it instructs it to do.

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Permalink Reply by Skip Peel - Mineral Consultant on January 10, 2011 at 14:06

A cost free royalty is a good suggestion.  As one for employing the services of a O&G attorney to review the lease would be also.  To make the determination that J W Porter is employing sleazy tactics from the initial  statement made by Mr. jenkins would be jumping to conclusions in my opinion.  I suspect that this may be the first lease negotiation for Mr. jenkins.  And he has performed his due diligence by going online and finding GoHaynesvilleShale where hopefully he will receive honest and accurate suggestions to help him make an informed decision.

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Permalink Reply by BirdDawg, plain ole' idiot on January 11, 2011 at 15:22

GoshDarn,

I agree and I think your advice is great.

Sounds like a very fair offer, just get the right clauses in your lease.

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Permalink Reply by Frank on January 10, 2011 at 14:23

JWP was representing CHK a couple of sections away in the summer of 2009.  They approached me and I did better with someone else before CHK shipped them out.  My landman was up north not long after settling.

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Permalink Reply by Two Dogs, Pirate on January 10, 2011 at 15:11

Frank, what do you mean by "Shipped them out" and what do you mean by settling"

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Permalink Reply by Frank on January 11, 2011 at 0:11

Miller Land did my work for CHK.  Russel Poole was sent up north when CHK reduced forces on leasing. 

I only talked with JWPs associate a couple of times with no price improvement before putting all my eggs in the same basket under Miller.  It took some doing since they had established regional boundries to keep CHK land companies from out bidding other CHK land companies.  The company landmen inside CHK were also managing regions at the same time.  I had to get two people I didn't know talking in order to close the deal on everything with one.

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Permalink Reply by Stevew on January 10, 2011 at 22:16

I agree $7,500 right now is a very good bonus.  What is the average bonus right now, around 5,000 or 2500?

 

Actually I am mostly posting my agreement so I can get a shameless plug in for the Oregon Ducks who took it down to 2 seconds and a field goal.  The game could have gone either way. Uncle Phil Knight is very proud tonight.  Auburn is a heckva team and they deserve the win.

 

Ok, sorry for horizontalling the thread ... Yeah, $7500 is a good bonus these days.  Cost free royalties would also be good. There is a section here on how to negotiate a lease, check it out.

 

Logger

 

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Permalink Reply by Henry on January 11, 2011 at 1:54

Logger,

I don't know the "average bonus."  But the Shreveport Times recently had an article which talked about how Chesapeake would readily pay $6000 to DeSoto Parish in the upcoming round of state mineral leasing.

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Permalink Reply by Skip Peel - Mineral Consultant on January 11, 2011 at 2:14

Correct, Henry.  But not just any mineral tracts in DeSoto Parish.  It's two that Chesapeake was nominating for the state auction.

 

DeSoto panel sets lower bid for leasing

 

By Vickie Welborn • vwelborn@gannett.com• January 4, 2011

 

 MANSFIELD — Minimum lease bids set in recent months by the DeSoto Parish PoliceJury have failed to gain any takers at the state Mineral Board sales so the parish's Administrative Committee has recommended a lower price. 

 

 The full panel will vote next week on Monday's committee recommendation to set the minimum at $6,000 an acre. That's an estimate Chesapeake Energy officials said they are comfortable with, and that's the company which
will nominate two separate tracts for bidding.

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Permalink Reply by Terry L. Antee on January 11, 2011 at 5:01

I have known Whit Porter for 30 years and he is an honest and caring person.  If he says that the amount will go down that is what his client has told him. It is not that complicated lease or don't.  Not all oil people are crooks or are trying to screw someone.             

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