Replies to This Discussion

Permalink Reply by Ringgold Redskin on May 3, 2009 at 15:55

It wasn't about the bonus money ( It would have been great for the Fed's & La and the misses has been counting in her sleep ), it was the standard lease form they push you to sign and wanting to add revisions . If I gave them a revision sheet it would come back with a few incorporated into their lease re-worded as to no effect. I decided staying un-leased for now would give me more options , rights and less problems. I will hold off signing anything until the price of gas is up and the leasing environment changes.
I won't ever (hopefully) sign one of their standard lease sheet without revisions attached. My guess is they haven't really had to negotiated any favorable lease terms ( except for large tracts) and don't want to start a trend on us smaller mineral owners.

I read your post on the main page on UMO/UMI verus 25%. good post! I don't know if anyone is paying the Hedged price just the average field prices ....very few royalty owners would know the difference anyway.
This was one of my main amendments/revisions on affiliates, hedged gas and arm length contracts as this is worth more $ right now for owners than the standard royalty being paid.
They are making money on the hedged gas ( $3.80 verus $ 8-10.00) and are signing even more hedge contracts for next year. Without revisions attached to the lease form I think it would be impossible to get hedge payment.
The DNR could look into it, and doubt they will ever try.
Someone will eventually file a lawsuit and the mineral owners will know where the court stands.

Skin