Replies to This Discussion

Permalink Reply by Har C2 on July 31, 2008 at 2:38

I am out of state can not do this myself.

But we should be reading what we are going to sign before we sit down at the table.

WHEN BUYING A CAR WE ALL JUST SIGN THE DOCUMENTS THAT ARE PUT IN FRONT OF US BECAUSE WE ARE SO EXCITED TO BE GETTING A NEW CAR.

Well I do not want to be so excited that I lose perspective when I am signing my gas lease. This is not a car.

Permalink Reply by BMP on July 31, 2008 at 2:55

I would advise you to hire a professional. It will save you money in the long run. Lease agreements change from one landowner to the next.

Permalink Reply by Har C2 on July 31, 2008 at 3:14

That is the point. I will hire a professional but I want to know enough about the lease to talk to him and ask him intelligent questions.

Permalink Reply by C.H. on July 31, 2008 at 5:27

Here is the thing:

1. Most leases are pretty much standard using the Bath Louisiana Form Paid Up R299--with the exception of the CHK leases that I have read--They are using MS WORD and rewording leases.

It is my opinion that these leases are very very bad for the Land Owner and I would advise you to hire somebody to rework it. I am a Landman and this is how I make my living so forgive me for not pointing out all the bad clauses CHK and their contractors are putting in the leases.

As a Landowner I would NOT sign a CHK lease as it currently reads.

Har--just send me a message if you want to hire somebody to work up an Exhibit A for you that will address some issues.

Good Luck either way!

Permalink Reply by Har C2 on July 31, 2008 at 8:28

Any chance you can post me a copy of these leases.

I am going to hire someone but I do not know who as of yet.

Permalink Reply by smith1 on July 31, 2008 at 13:06

We tried this originally, but soon found out that each lease is different to each landowner. If you have the time,, just search the web, etc. There is a host of info out there, then make notes, etc., and then hire a good O&G attorney to look over & get his opinion. That's what we did. Did not cost much at all. Not near as much as alot of people are charging you, like 1, 3 or even 5% of signing bonus.

Permalink Reply by Randy on July 31, 2008 at 16:31

I know we pass out leases like candy for people to take home with them. If you get one of ours, and sit down with the internet, and actually take the time to read it slowly... You will understand most of it.

Also if you post a clause on here you just can't figure out, one of us will explain it.

You can do this guys, I'm not saying don't hire an attorney, but don't think it's impossible to figure this out. In most cases if you ask for something to be changed, we'll tell you if we can. Of course do your research first so you'll know if you being bs'ed.

Randy

Permalink Reply by JW on July 31, 2008 at 17:04

Randy,
As a landman, do you have the flexibility to say ok to requests for changing clauses? Do you have guidelines that you can go by or parameters that you can work within? I would assume that everyone gets the bread and butter lease up front and it is up to them to request deletions or additions.

Also, on another subject, I understand that there are 4,000 landmen working for Chesapeake alone. Do these people do this full time and travel around chasing plays? With all the talk about leasing slowing down, I would hate to see that many people unemployed.

Thanks for your input. I am not necessarily asking about you individual case just landmen and leases in general.

Permalink Reply by Margaret Wren on July 31, 2008 at 17:12

Randy,
I have had a lease with J&W operating for about 10 years. I have a seperate clause specifically stating that the lease only includes the depths from the top of the Cotten Valley Formation as defined by the logs of a certian well to fifty feet below the stratigraphic equivilent of the deepest producing zone of the well. Do you know what stratigraphic equivilent of the deepest producing zone means exactly in laymans terms? I know this was once explained to me (by my attorney) but at the time I was trying to understand so much at once and trying to be careful too, that I need a memory jog. If you could please explain it I would be so grateful.
Thank you,
Margaret