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Permalink Reply by The_Baron on November 14, 2008 at 8:59

They'll probally spend a ton of money and find the locations after 100 wells have already been drilled. There are many rumours about locations already negociated for waiting on the leasing to wrap up.

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Permalink Reply by Skip Peel - Mineral Consultant on November 14, 2008 at 13:21

Possibly. My perception is that the City has done its homework. Not only in relation to qualifying drill site locations but to the challenges of urban drilling and production experienced in Fort Worth. I expect that the City will be sensitive to the concerns of citizens (read: voters or constituents) but, like the state, will be interested in getting the associated income.

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Permalink Reply by Skip Peel - Mineral Consultant on November 14, 2008 at 14:05

KB. You have earned the right to ask me anything, anytime. Well, almost. If I am wrong in my perception of the administration's knowledge of urban drilling challenges and the need to protect the citizens they serve, I will be more than willing to admit my mistake. It will be much less painful than the wrath of the voters visited upon our mayor and city council if they prove to be less than capable of protecting their constituent's "quiet enjoyment".

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Permalink Reply by sesport on November 14, 2008 at 16:22

Skip - thanks for that update, I've been pretty busy lately and appreciate the update. Is that from the coalitions website or directly from your association? I'll get that word out to my neighbors. I know that I feel more comfortable having my neighborhood aligned with SCC, don't want it to end up looking like the areas around Libbey Glass & the refinery. I expect responsibility on both sides of any partnership/lease agreement that I get into.

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Permalink Reply by Skip Peel - Mineral Consultant on November 14, 2008 at 18:16

sesport. The newsletter popped up on my computer alerts today and I just passed it along as I had not noticed any SCC updates lately. I included the link to the Broadmoor Neighborhood Association (my neighborhood) because it had a downloadable letter of intent link for anyone interested. I am not too concerned about having weekly updates for the mere fact that, other than signing up any additional interested homeowners, there is not much to report or discuss. I do not expect any substantive offers to be made until sometime next year. I am in no hurry and suggest that everyone take a holiday break.

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Permalink Reply by sesport on November 15, 2008 at 10:35

Thanks, I'd like us to take our time, too. Just some neighors get nervous. The Nabors 620 sign on the corner by Harts' Landing kind of announces that activity is close to our SE neighborhoods. In light of the news about Greenwood lessors, I don't mind that SCC is courting other interests. It's the best news I've heard, but neighbors are wondering. Not all have the patience, nor do they understand that not all things can be disclosed. BTW, if you follow the link to the Times blogpage at the bottom of the SCC website, that same info was published there.

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Permalink Reply by Skip Peel - Mineral Consultant on November 15, 2008 at 10:51

I suspect that some land companies/operators are counting on the nervousness and lack of patience that you mention. I predict that bonus offers will go even lower over the next two months though not quite to the levels exhibited in the November state auction bids. There will be a concerted effort to spread the notion that bonuses can only go down from this point on. And that those who wait will only get less. Or be left out altogether. There is no evidence or logic to support either assumption but some landowners will succumb to the fear of one or both.

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Permalink Reply by Skip Peel - Mineral Consultant on November 15, 2008 at 12:47

That's a little too dramatic for my tastes, KB. It is a business strategy. And one with some merit as it has worked before. Numerous times. The main difference this time around is the Internet. And the opportunity to educate and communicate to landowners that they are involved in a business negotiation. Demonizing the O&G industry may elicit a lot of "amens" but does little to encourage land/mineral owners to understand the advantages that they possess and the nature of how the industry operates. Knowing your opponent's tactics, motivations and their weaknesses is the key to being a successful negotiator. The O&G industry has honed those skills over a hundred years. They are a formidable opponent. But they do not hold all the cards. Landowners have some cards to play also. They just need to know how to play them. Extending that analogy, the industry has some favorable cards showing and now they are ready to bluff. Hoping that their opponents are impatient, nervous and feeling totally out of their element. As I said earlier, a stratagem that has worked for decades.

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Permalink Reply by Skip Peel - Mineral Consultant on November 15, 2008 at 13:43

This playing field will never be level. But metaphors that foster a sense of futility may lead some to fold a good hand. Landowners do not need access to seismic or geologic information to play their cards. They do need professional help. And the ability to afford top notch professional assistance is the true value inherent in the dynamics of a group approach. Get the best and split the bill.

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Permalink Reply by Skip Peel - Mineral Consultant on November 16, 2008 at 2:32

It is not a wise decision to sign a standard O&G lease form. Have an experienced O&G attorney draft one to meet your personal circumstances and concerns. Or amend the company's lease form to accomplish the same.

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