Lease Contracts Should be More Like 50/50

 
I think the owners of these mineral rights should have a much larger interest in the production and royalty, it's really like ah 50/50 deal, the oil companies have the equipment to develop and we have the mineral to be developed, one with out the other just won't work.  They put a 250k in your face and basically bribe you to drill for a low royalty percentage...

 

The Saudi's and the rest of the mineral rich families in the middle east don't play that... just saying

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landownerPermalink Reply by adubu on May 22, 2011 at 13:41
2 dog--you lost me on comment about the Cat Dozer relationship to discussion--sorry

landownerPermalink Reply by Max on May 22, 2011 at 13:48
We've shipped out the "small" equipment to other countries.  It's been several years, but anything under a hundred horse is not built here anymore.  Let's get it back.  I read everything's label, I'll pay twice as much for U.S. made, at least someone can feed their family.

landownerPermalink Reply by adubu on May 22, 2011 at 13:52
Max--- Now we are on the same page--We need to redo our Tax laws, outlaw unions  and the jobs would return so label would read "made in USA"

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on May 22, 2011 at 14:03
Cat Dozers are are a workhorse, the bigger the number after D the bigger the dozer. Oxen were the log skidders of years past, 1 horse, then 1 horsepower, 1 oxen maybe 5 horsepower.
Permalink Reply by Buddy Cotten on May 22, 2011 at 14:16

Two Dogs,

 

I once gave a 75% royalty.  The Lessor did it as a favor to me.

 

Other than that, 30% once.  27.5% once.

 

Buddy Cotten


Oil & Gas ProPermalink Reply by Two Dogs, Pirate on May 22, 2011 at 14:24
Thanks Buddy, I figured that if anyone had had to do something like that, it would have been an old pro like you.

landownerPermalink Reply by adubu on May 22, 2011 at 13:25
Buddy---If we could just decrease the weight of  "entitlements" in our wagon our horse could do more for prosperity.

landownerPermalink Reply by Max on May 22, 2011 at 13:39
Just remember, if you drop that anvil, you won't have a base to pound iron into steel.  Don't get me wrong, capitalism is the engine to build wealth, but without the wagon, and it's cargo, where would we end up?

landownerPermalink Reply by adubu on May 22, 2011 at 13:46
Max-- we need to pull cargo in the wagon that builds the properity not things that hold us back. Yes we need to care for the true disable but not those who mind set is "I am Entitled" with socialism ideals of wealth should be equal redistrbuted.
Permalink Reply by Aubrey C. Sanders, Jr. on May 22, 2011 at 16:40
Adubu,  That would be a good start. Say, I hear my political party needs a good candidate for president. Maybe you could try out. Maybe I would if I were'nt too old.

landownerPermalink Reply by adubu on May 23, 2011 at 0:05
Aubrey---Thanks for honor but I am also too old. I will take Newt Gingrich in place of BO

Oil & Gas ProPermalink Reply by DO Analyst on May 23, 2011 at 5:00
Just keep in mind that you are not required to lease, you can participate with your minerals and give yourself 100% of the money.  Just be prepared to see how much it costs to operate a well and how long it can be before you actually see a profit.  We are in the business to make money, and I would venture a guess that the business practices being done in the Haynesville and other areas has vastly improved the quality of life for the majority of people involved.  if you get a 50% royalty, it is not profitable for us to drill a well and therefore we will move on to other sections.  In fact, I would venture a guess that anything less than a 70% net revenue is a huge gamble for most companies.  this meaning that royalty and over rides on a lease should not be more than 30% combined.

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