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Permalink Reply by Coonman on June 27, 2008 at 9:54

I dont understand why anyone would allow thier land to be "Pimp Out" by paying a rep ....to begin with you worked for it or your family did, so why give any of it away people have to remember thats your partner till its over!!

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Permalink Reply by Kassi on June 27, 2008 at 11:23

That person is only your partner if you give them a percenage of the royalty (which is not a good idea). A percentage of the sign on bonus is for negotiating the lease only (typically). As the person who has organized my section and has been negotiating with the companies for our section I know how much work and research goes into it. If I were to do this for any other section I would have to charge a small percentage of the bonus d/t the time and energy that goes into this. You can negotiate for yourself, if you know all the ends and outs, and if you want to put forth all of the time and energy to bring your section together and educate everyone, etc. Otherwise, it is worth it to pay someone a reasonable price to do it for you.

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Permalink Reply by kerlybil on June 30, 2008 at 2:10

The rep only gets a percentage of your signing bonus, not your royalties. This may work for some neighborhood groups who don't have the time to do all the research and nego. For instance, you sign a contract with a rep that gets 4% of your bonus. If you get 10 G's an acre that is $400 for the rep. Thats a small amount for nego a price for you. Now if you own lot of acreage, you don't need a rep to nego. for you. But for neighborhoods with an acre or less it can be a good bargaining tool if someone speaks for the whole neighborhood. Now there are some neighborhoods that have gotten some people that have stepped up and grab the bull by the horns and done it all for the nego. and haven't ask for any compensation, and that great. But if i'm nego for a neighborhood, I would expect some compensation for my time.

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Permalink Reply by RAY on June 30, 2008 at 5:04

if the o&g co. is offering me $6000, I hire you to rep me, you get them up to $10,000.
I would be glad to pay u on the $4000 difference......but not on the $6000 I was already getting.

p.s. some reps want a % of your bonus & your royalty.

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Permalink Reply by MARG on September 11, 2010 at 6:11

I thought it was standard to just receive on the difference between a basic offer and the amount offered by the company and perhaps a tip for the increase in percentage. Sometimes that can be a lot if a company was offering five hundred and one got it increased to five or six times more. LOL It does take thinking and time and one should be given something for the skills and time. (At least a gift. It is getting to be time for people to do their own and not worry about others as with all the bargaining with the company, one can make a name with the company if they are with them too, and I would like to stay in great terms with the company too. LOL ): We have pipelines, etc. to consider being in good with others for our on good. I cannot see charging a life long friend (?) a big fee; however, some kind of thanks should be done. It takes time and money to belong to things, attend classes, conventions, etc. I understand that some make a livelihood like that, but we are blessed to have the minerals; most of us are probably heirs and owe the blessings for our forefathers.

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