Replies to This Discussion

Permalink Reply by Lotza Spotz on July 10, 2008 at 3:42

Well, call me stupid, but we're not signing the Dogwood lease. We have a normal sized lot, probably about a quarter acre. I am hearing from this website that we would probably be better off taking our chances with opting for the 100% royalties once all the drilling company's costs have been settled, since it's such a small lot. We are OK with passing up the bonus, not a problem. The Dogwood HOA now says that 82% of our residents have signed as of 7/9/08, and I guess that's to help encourage the rest of us to do that same. But, I don't like the approach that was taken, and on principle, I don't think I want to get sucked into this in this manner. I'd like to know more about forced pooling, and have checked out the other groups on this, but overall, I get the impression it's not such a bad thing for small landowners like us. Am I misunderstanding this? Comments welcome, thanks!

Permalink Reply by Haughton Area on July 10, 2008 at 4:02

Dont sign, we are getting over $10,000 and 0.25 on the Wafer Road / Winfield / Bellevue Road Area...hold out a lil while longer.

Permalink Reply by Randy on July 10, 2008 at 16:06

There are some force pooling discussions in some other groups like O&G Pro's. If you aren't in the O&G business, you are at a serious disadvantage as a un-leased interest. I know, that coming from me, you probably don't believe me. Which I suppose is fine.

Look more into deductions (and how will you know what deductions are allowed out of the accounting lingo they will show you?), longterm costs, pipeline and transportation fee's that can be passed on to you... etc

Even lessors see some of this, but it is very ramped up for non-leased interests.

I know as a leasing agent, I can't convince you otherwise, but get some more advice from someone you trust who knows.

Randy

Permalink Reply by Lotza Spotz on July 11, 2008 at 3:09

Thanks for being candid, Randy. I've been speaking with a retired O & G engineer with over 50 years in the business here, someone who leases mineral rights all over the state on property he owns, who tells me we should hold tight for awhile longer. Tell you what, if Twin Cities wants to come back with a more generous offer, especially in light of recent information re. drilling results in Elm Grove, we'd be glad to listen. You could easily do that after July 16th, the reported deadline for signing leases in Dogwood, with all the remaining property owners who haven't signed. I'm not happy about not signing a lease, don't get me wrong. But I'm even less happy about the possibility of jumping the gun out of stupidity. To tell you the truth, you're right, we don't know what we can anticipate in "ramped up" expenses that are charged to unsigned property owners, but I suspect even after something like that, we'd still come out ahead of what Twin Cities is offering in the current lease proposal. Just common sense -- how could all this recent news discussed in the CHK press conference result in absolutely no change in an offer that first came about, what, two or three weeks ago? If it's better for you guys, it should be better for us guys, too, don't you think?

Permalink Reply by PM on July 11, 2008 at 4:18

Thank you Lotza Spotz, I agree 100%

Permalink Reply by Johnson on July 10, 2008 at 4:47

Wow....that's a horrible deal. Those guys are getting screwed.

Permalink Reply by revco on July 19, 2008 at 11:43

I live in Sterling Ranch and I felt the same way at first. The more people I spoke to the more the 8750/acre seems like a solid and standard deal. Dogwood HOA got 120% and since I don't know how to drill, market, transport, or store the gas among a plethora of other things... I'll take my 8750 and my 1/4 and get on with my life. I didn't know about it 3 months ago, and quite frankly I am just happy its over!

Permalink Reply by Johnson on July 19, 2008 at 14:40

revco,

No offense....but Dogwood is fast becoming what everyone points to as a "bad deal". IE....don't get "Dogwooded".

Permalink Reply by cmitch on July 21, 2008 at 8:29

I have to agree with revco on this one. Given the circumstances for our neighborhood I'm happy with what we got and that its over. I live in Dogwood and according to what I was told the large landowner north of Dogwood had already signed and the well location has been identified. So the pressure was on to get Dogwood signed which completed the unit. Sure I wish we could have gotten more but how can you negotiate higher prices when your only dealing with one company. What we needed was a bidding process between two or more competing companies.
Did we get a bad deal? Who knows? Yeah there are deals out there better than ours and that will be the case until the fever had died down. Everyday someone somewhere else got a better deal than the day before. So what do you mean "dont get Dogwooded"? We certainly got more per acre than alot of others who signed leases back earlier in the year. People in Desoto parish were signing for $350/ac back in March and April and were tickled to death but now are left wondering what did they miss because 30-45 days later the leases mutliplied 10, 20 even 50 fold and higher. What is the max here?
More power to those who get more...I'm happy for them. But for Dogwood let the drilling begin!

Permalink Reply by Lotza Spotz on July 20, 2008 at 4:36

Brian, in your professional opinion from your perspective as a businessman, what would be a reasonable royalty percentage per acre. I'm looking at this from the perspective of a small lot owner (1/4 acre) in Dogwood, not someone who is fortunate enough to own a lot of land here.

Thanks!

Permalink Reply by Les Bamburg on July 20, 2008 at 5:21

Brian, in case you didn't realize the engineers are the ones that do the value assessments and economics for the major O&G companies, not "businessmen". So I would be a little more cautious before throwing out such condescending comments.

By the way do you care to share your decline curve analysis for individual wells or maybe the impact natural gas imports and climate change regulation will have on future fossil fuel pricing in the US. Maybe you would like to comment about the changes in natural gas regional pricing basis due to the completion of major new pipeline infrastructure projects.

Permalink Reply by dreamcatcher on July 21, 2008 at 12:28

Dogwood,in due time, you will find out just how bad you got hosed. Why your hoa thought they could negotiate as good as an oil and gas attorney, is mind boggling. Some might think they got the best deal possible, many are finding out just the opposite.

• ‹ Previous
• 1
• 2
• Next ›
• Page