Now is the right time to hire experienced oil and gas attorneysPosted By: Steven Townsend
Landowners and producers alike have all felt the effects of the current glut of oil and natural gas flooding the market. While low oil prices have been good for anybody driving a motor vehicle, the low natural gas prices have had a significant negative impact on leasing activities.
As a matter of fact, many leases that were signed in 2010-2011 are either expired or will be expiring soon since no production activities have commenced on the leased lands which would extend the lease into the secondary term. More important is the fact that very few leases are being renewed.
Let me explain why now is the time to hire us as your oil and gas attorneys.
Back in 2007 when the last gas bubble led to a decrease in leasing activities a number of unscrupulous lease flippers approached landowners and fraudulently led the landowners to believe that they would be left out of the next boom if they did not immediately sign a lease with them. Unfortunately, many landowners believed these lies and leased their land for as low as $3.00 per acre on an open ended lease with no expiration date.
In 2009-2010 when it was announced that new drilling technology made development of the Marcellus and Utica formations feasible, the flippers who stole the leasing rights from the folks assigned their $3.00 per acre leases to the gas producers for $3,000.00 per acre or more and in many cases retained an overriding royalty as well.
The folks who gave their oil and gas rights away to the flippers received no benefit from this lease flip and, to make matters worse, they are now stuck with bad leases with bad lease terms and a 12.5% royalty.
Unfortunately, history seems to repeat itself, especially when it comes to stealing from the folks. We have been contacted by a number of landowners recently who reported that several large producers and shady contract landman companies have approached them since their leases are about to expire.
The producers and the landmen are using the same line as they used in the past. They are trying to scare landowners into signing low ball leases for fear of missing out on the opportunity to cash in on the next boom.
You should hire us now so that when you are approached by anybody concerning your land and your oil and gas rights, you can simply tell them to call us. You can rest assured that nobody will lie to us like they will lie to you. More important, we will not let anybody take advantage of you or scare you into making a bad decision that will affect you and your future generations.
Our arrangement with landowners is that we only charge 5% of the advance delay rentals. We do not take any percentage of the production royalty from our clients. It will cost you nothing to call us and allow us to represent you in all matters affecting your land and your oil and gas rights.
By: James Brink