Replies to This Discussion

Permalink Reply by obed w odom on November 30, 2010 at 11:42am

Greydog,

I'm not sure which township your property is in, but if it is in Township 23N, Range 6W, it is fairly close to my property, which is in Sections 10, 11, and 14 of this township. I was offered and accepted $300/acre, 1/5 royalty, and 3/3/1 term.

Permalink Reply by Greydog on November 30, 2010 at 12:03pm

See above for edit on property description.

Thoughts? Consistant with surrounding leases? What about $350/400/acre? 1/4 royalty? Vertical Pugh clause? Favored Nations clause? I don't want to do anything that would have a negative affect on any adjoining landowners. I want to help.

Also, what is the "1" on the "3/3/1" term?


Thanks

Permalink Reply by obed w odom on December 1, 2010 at 12:01am

I see that your property is considerably west and south of mine. I haven't heard of bonuses higher than $300/acre, or of royalties higher than 1/5, in northern Claiborne Parish. My lease did not have a Favored Nations clause, but did exclude the Haynesville shale and formations below the Brown Dense.

The 1 in 3/3/1 is an additional 1-year lease option if the first option (for3 years) has been exercised.

Permalink Reply by obed w odom on December 1, 2010 at 12:22am

Sorry, I meant to say that your property is east and south of mine.

Permalink Reply by Greydog on December 1, 2010 at 7:57am

Is your lease with Pinebelt? If so, could you tell me when it was signed?


Thanks

Permalink Reply by obed w odom on December 1, 2010 at 1:08pm

Yes, my lease is with Pinebelt, and was signed Sept 21, 2010. Payment was by draft, which was finally honored Nov 5, 2010.

Permalink Reply by Greydog on December 1, 2010 at 4:26pm

If you don't mind, did you attempt to negotiate the bonus, terms and royalty and, if so, how was it received? Specifically, were the lease terms those offered out of the box or was there any give and take? Again, I just want to be consistant with adjoining landowners.

Thanks

Permalink Reply by obed w odom on December 1, 2010 at 9:59pm

I didn't do much negotiating but I had checked around and had not found that anyone near me had gotten higher offers. I think they did add the Haynesville shale exclusion at our request, but from all accounts there *is* no Haynesville shale in northern Claiborne Parish. I don't think shallower depths are excluded, which might have been something we should have asked for.

Permalink Reply by Greydog on December 2, 2010 at 5:28am

What "shallower depths" are you referring to that should have been excluded?

Permalink Reply by obed w odom on December 2, 2010 at 12:26pm

Well, we could have asked that everything above the Smackover formation be excluded from the lease, but I have no idea whether Pinebelt would have agreed to this or not.

Permalink Reply by Ron Barrow on December 2, 2010 at 10:06pm

Our property is very close to you and it sounds like we are dealing with the same lease proosal that you recieved from Pinebelt. We are close to finishing discussions but we do not want to be in a situation where we get flipped and left for years. rb

Permalink Reply by Greydog on December 3, 2010 at 7:37am

Mr. Barrow- can I get your email? Would like to visit with you.

Thanks

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