DO NOT PAY ANYONE TO DO WHAT YOU CAN DO YOURSELF FOR FREE!!!
My comments have been misinterpreted by one individual (or more). So my message does not get lost, please consider the following: I am an attorney, but I am not giving you LEGAL advice. I will not represent anyone so please don't ask. I am simply giving my PERSONAL opinion as the 1st amendment to the U.S. Constitution allows me to do.
I am tired of seeing new sites pop up offering to negotiate, draft, advise, etc., folks on their mineral rights, leases, and tax implications. YOU PROBABLY DO NOT NEED TO PAY ANYONE TO HANDLE YOUR MINERAL LEASING ISSUES unless you are a large landowner, complicated title to land issues, or other "unusual" facts are at issue. People don't hire attorneys to negotiate the terms of their mortgages, or credit card agreements, or car leases. There are many complicated legal documents we all sign often without the benefit of an attorney's counsel. There are numerous sites "popping up" which provide accurate information about mineral leasing and mineral rights. It will take some time, but if you read the materials, you probably can grasp the issues relevant to your situation. If you don't feel comfortable after "educating" yourself in the area of LA mineral law and leasing, then seek advice of counsel. If you work long hours and then have kids at home and other obligations that make research impossible, then perhaps an attorney should be consulted.
HOWEVER, BEFORE HIRING AN ATTORNE, CONSIDER JOINING A "NEIGHBORHOOD ASSOCIATION!" I, for example, belong to NorthPark Estates Neighborhood Association. We are landowners who are taking our collective knowledge and expertise and helping each other free of charge to the members. If the association has knowledgeable members, then you don't need to hire an attorney. Just about every neighborhood in Shreveport and Bossier has formed an "association." If you have this option, it doesn't make financial sense to pay for services that you can obtain for free through your "association."
If you must pay someone to handle your mineral lease negotiations, don't pay 2-4%. In my opinion, such a fee is unreasonable. You should pay NO MORE THAN 1%, especially if there is a large group retaining the services of an expert. If you can't get your expert to accept a 1% fee, go to the next person until you find someone who will.
Let me make myself even more clear, if there are complicated legal issues involved, like trusts, you should consider an attorney. If you find yourself in litigation, you definitely need to hire an attorney. If you have a 1/3, 1/2 or 1/4 of an acre, then the costs of an attorney and CPA may be cost prohibitive.
I am tired of seeing new sites pop up offering to negotiate, draft, advise, etc., folks on their mineral rights, leases, and tax implications. YOU PROBABLY DO NOT NEED TO PAY ANYONE TO HANDLE YOUR MINERAL LEASING ISSUES unless you are a large landowner, complicated title to land issues, or other "unusual" facts are at issue. People don't hire attorneys to negotiate the terms of their mortgages, or credit card agreements, or car leases. There are many complicated legal documents we all sign often without the benefit of an attorney's counsel. There are numerous sites "popping up" which provide accurate information about mineral leasing and mineral rights. It will take some time, but if you read the materials, you probably can grasp the issues relevant to your situation. If you don't feel comfortable after "educating" yourself in the area of LA mineral law and leasing, then seek advice of counsel. If you work long hours and then have kids at home and other obligations that make research impossible, then perhaps an attorney should be consulted.
HOWEVER, BEFORE HIRING AN ATTORNE, CONSIDER JOINING A "NEIGHBORHOOD ASSOCIATION!" I, for example, belong to NorthPark Estates Neighborhood Association. We are landowners who are taking our collective knowledge and expertise and helping each other free of charge to the members. If the association has knowledgeable members, then you don't need to hire an attorney. Just about every neighborhood in Shreveport and Bossier has formed an "association." If you have this option, it doesn't make financial sense to pay for services that you can obtain for free through your "association."
If you must pay someone to handle your mineral lease negotiations, don't pay 2-4%. In my opinion, such a fee is unreasonable. You should pay NO MORE THAN 1%, especially if there is a large group retaining the services of an expert. If you can't get your expert to accept a 1% fee, go to the next person until you find someone who will.
Let me make myself even more clear, if there are complicated legal issues involved, like trusts, you should consider an attorney. If you find yourself in litigation, you definitely need to hire an attorney. If you have a 1/3, 1/2 or 1/4 of an acre, then the costs of an attorney and CPA may be cost prohibitive.
Views: 258
Replies to This Discussion
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Permalink Reply by Donna Bishop on
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I am with you. I am not giving someone my money for work that I can do. My neighbors signed an agreement with a geologist for 4% to handle their negotiations. There has not been any offers in our area because the majority of the land has already been leased by Matador. So we may never get to a leasing point. No one wanted to take on the responsiblity of negotiations because no one knew the O&G business. What I knew of it was because of doing business with O&G leasing in East Texas.
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Permalink Reply by Jaybird on
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WT Viscante,
Just in case your wondering, I am not a lawyer. Don't ask me to represent you because I will not do so. Here is my opinion:
I agree with you 100%. Anyone can do their homework and learn about the leasing procedure and make a good deal. There is no reason to pay someone to do what you can easily do on your own.
You have to use your resources and just make good, sound decisions that is in the interest of your needs and the needs of your family when it comes down to dealing with the O&G's.
Thanks for giving us your opinion, I think people are afraid to deal with these companies fearing they might make a mistake. Just talk to your family and the surrounding land owners and you can achieve a good lease for your property.
Again, thanks for your opinion, I appreciated it!
Jaybird
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You have done a great service to your neighbors and community. I agree with your opinions. If one does their homework they can handle their own leasing. I am a geologist and O&G operator strictly handling my own property. I have found that when you help others to get the very best leases they ever had they will find some fault later.
Many people toss hearing notices from lawyers or Office of Conservation in wastebasket. Ahuge mistake. Read them, ask questions, request pre-conference hearings, ask ANY QUESTION you have. Do not be intimidated.
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Permalink Reply by W T Visconte on
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Thanks, Aubrey. As someone in the O & G business, I value your input.
W. T. Visconte
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Permalink Reply by old as dirt on -
This is important to your future. Why wouldn't you check with an attorney to make sure you have all the i's dotted and the t's crossed? Sure read and learn and you probably can agree to the bonus amount and royalties but what about the other leagalize they put in the lease? If you have a small amount of acreage you might take a chance but we have 150 acres, it is to big a gamble just to say I did it myself.
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Permalink Reply by Har C2 on
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Lawyers have there place, just get an oil and gas lawyer.
Do not get a lawyer, who up until 2 months ago, hasn't read a o/g lease since studying for the bar exam.
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Permalink Reply by old as dirt on
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I agree, just because a doctor may specialize in knee replacement doesn't mean I would want them to do a heart by-pass.
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There is no part of the bar exam dealing with oil and gas law or leasing, way to specialized an area for that.
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Permalink Reply by Carter on -
Mr. McConnell, I have greatly enjoyed and learned from the wealth of knowledge displayed in your postings on allexperts. Good to see you here.
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Permalink Reply by Sunny Chaw on
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I want to tell you that your posting on allexperts put me in a much better position facing Kinder Morgan-Mid Continent. Thank you Jim, I just realized who you were or I would have spoken sooner. Thanks again. I cannot say enough.
I am happy to have this blog available and even more so knowing you are here.
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Permalink Reply by Bobi Carr ("parker") on
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Why hire a doctor or NURSE though. Just because someone is nice and has been helpful does not make them an expert or a good negotiator. Just because they want to protect their environment does not mean that they are a good consultant.
I've had people want to pay me for my poe-dunk advise. Just on the basis that I am a large land owner and made some mistakes. Will I become a consultant now - NO.
Of course I am smart enough to know that experts aren't made overnight. I would never be so self delusional to believe that a few months worth of SHALE knowledge have given me the knowledge to represent someone else.
If you have something to offer and you are not an attorney (charge by the hour). And be careful that you are not advising your clients on the law. It is illegal to practice law in the state of Louisiana without a law degree (even if you have an RN degree). Consult all you want but a lower % than the people that have been around doesn't make someone any different than the GEO's and CPA's and EX-LANDMEN that are doing the same thing.
I have posted several place on this site that if anyone is going to pay someone a % it should be to an attorney. At least then if there is any litigation about a particular clause, the attorney would know what the intent of the client was at the time.
Also basing knowledge on the Barnett may be a mistake in some instances because Louisiana laws are much different.
I tried to hire you Mr. McConnel for advice. I would still love to if you can tolerate rants. (not aimed at you - of course).
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