The Rush Is On In Louisiana
Thanks to Talley Talker Sparky for alerting us to this article in today’s The New York Times. Click here to read it.
I have received four letters and am trying to connect with my neighborhood group on this. Your experiences so far with the Haynesville Shale?Â
July 29th, 2008 at 7:25 pm
Missing my neighborhood meeting right now. I feel like a wayward resident.
July 29th, 2008 at 7:45 pm
I am in South Highlands and to my knowledge, the landmen haven’t gotten to us yet. I am the executor of my mother’s property in Southern Hills and the first offer was $250, the second $1000 and now there is a group that has gone in together, about 1200 homes, and the man negotiating is talking money in the $20,000 an acre range which would put her lot at around $9500.
Anyone have any feelings about joining in with a group vs going alone? The man coordinating it wants 4% of the initial bonus and none of the royalties. Some people have told me that I should hold out for more while others say I have more weight in negotiations going with someone who is representing more acreage.
Sherri, thanks for posting this topic and I hope it generates much discussion.
July 29th, 2008 at 7:48 pm
Already we are seeing signs of this being over-hyped. Does anyone remember the big hype Chesapeak started over the Austin Chalk Play. Very similar to this. This will no doubt be a good play and make a lot of gas, but already in the last month we’ve seen a 30% drop in the price of natural gas. My advice…hurry and make your land deal before the competition cools on this. Don’t be greedy, take the offer for you minerals and be happy.
July 29th, 2008 at 8:19 pm
We got a notice from Twin Cities in Broadmoor but I don’t know where it is now to find out about the meeting. We’ll be happy to take what ever we can get. It’s found money. From what I hear it is better to make a deal with a group if you can but I don’t have scientific evidence to back that up.
July 29th, 2008 at 8:31 pm
Correct, if you go it alone, you can easily be ignored and they can drill around your property. Unless you have a significant acreage position.
July 29th, 2008 at 9:09 pm
Just got back from a Broadmoor Neighborhood Assn. meeting. The neighborhood is linking with some 30-others to form the ShreveCentre Coalition. Individually, we’re being offered around $5,000/acre. The coalition is hoping to get in excess of $30,000/acre. Much better to group-up!
For a non-binding letter of intent, contact B.N.A. at 868-1199.
July 29th, 2008 at 9:20 pm
In South Bossier I got an offer of $5500 per acre. Got notice of meeting but was out of town. Our neighborhood is grouping Bellaire, Shady Grove, Sun City and Pecan Park.
July 29th, 2008 at 11:17 pm
What about Southgate? Any chance of growing a little further south, Rebecca?
July 30th, 2008 at 12:07 am
The price per acre is a one time fee. Don’t forget that you should get a % of the production too. That’s potentially worth a lot more than. You should get up to %25 royalty.
July 30th, 2008 at 7:25 am
jchristie - I live in Plantation Trace and missed recent neighborhood meeting due to travel, but understand that our neighborhood was going to try to get with Southgate and maybe Golden Meadows to consolidate negotiations, but not sure what the next step is. Think we have landman and atty in neighborhood driving that process and i will post update here when I learn more.
July 30th, 2008 at 8:07 am
HRB, was wondering about the royalty. Is that 25% standard?
July 30th, 2008 at 8:15 am
hey sherri, so do I need to call the number you gave?
July 30th, 2008 at 8:27 am
Hey kimmy. That’s the number that was at the bottom of the non-binding letter of intent I got last night at the BNA meeting. If you want to find out more or get one of the letters, you might start there. BNA is part of the ShreveCentre Coalition.
July 30th, 2008 at 8:58 am
Oh, and kimmy…as safety engineer of this site, please guard against paper cuts and other hazards when dealing with the mail and such. We’re depending on you.
July 30th, 2008 at 9:33 am
i will do my best!
July 30th, 2008 at 10:25 am
HRB is right, if you go alone they will drill it out from underneath you anyway. I would say about 10,000 per acre and 25% of the royalties. But don’t forget you have to pay about 42% taxes next may, so take it and invest it in a short term cd until then.
July 30th, 2008 at 7:37 pm
jchristie
The phone numbers on my flyer for Bellaire, Shady Grove, Sun City and Pecan Park are:
746-3597 - Bill Lowrey
746-1316 Toney L. Charles
746-1034 Robert Rives
for more info on the neighborhood coalition.
July 30th, 2008 at 8:17 pm
Yes, Royalties are taxed by everyone who can tax. To answer your question Sherri, 25% is very good, not standard. Often it is 1/8th or even 1/16th. 1/4 is being batted around because the competition is so high. Take it fast!
July 30th, 2008 at 8:25 pm
Thanks, Bro.
Disclaimer: HRB is my brother, but also one of the nation’s leading geophysicists.
July 30th, 2008 at 8:37 pm
HRB could be making some consulting money around here.
July 30th, 2008 at 8:51 pm
Make me an offer…
July 31st, 2008 at 8:48 pm
I know everyone is really excited about all of this, but I live in Stonewall and we already have 2 gas wells within a 2 mile radius of our house. There is constant noise, the trucks are tearing up the roads, and 18 wheelers fly down our roads. I’m really scared of what’s going to happen when school starts and the kids are standing at the bus stops. I hope that this gets addressed at some point. I don’t mean to be negative, and I’m really excited about the economic growth. I just hope there is some corporate responsibility in all of this!!
July 31st, 2008 at 9:01 pm
Good point, Buzz Kill. That was a huge problem in Frierson. I’ll put this up for a story for more investigation. If you or anyone else wants to comment on camera, email me at stalley@ktbs.com. If not, no problem.
August 1st, 2008 at 8:53 am
I work with a lady who lives in Frierson - her and her husband were in the media a couple of months ago due to a well being basically in their back yard (they own no mineral interest in their property). Like Buzz Kill says, they were very frustrated with constant noise, bright lights at night, trucks coming and going at all hours and having their personal vehicles always covered with dirt (stirred up from the constant truck traffic).
So much for trying to buy property out and away from everything, or at least in their situation. Also, they can’t sell as no buyer wants to buy their home with well in back yard.
August 1st, 2008 at 9:51 am
We moved to Stonewall for the peace and quiet. In town, none of this would even seem bothersome, and for most people, this will not even be an issue. But, for us it is!!Plus, I just found out today that they are drilling another well right behind us. That will make THREE in a 2-mile radius. UGGGHHH!!!
Sherri, I was afraid to even post my real name on here, much less go on camera. Everyone feels they are going to become millionaires off of this and when I say anything negative…well, I’m just a buzz kill!!!
August 1st, 2008 at 10:35 am
Buzz Kill, I completely understand your reservations and respect that.
George, I’ve spoken with the couple you work with in Frierson. We did a community forum in Mansfield and they spoke out. This was a hot issue there.
August 1st, 2008 at 11:42 am
The gulf coast states have always been pretty tolerant on O/G development, including refineries. It is a big operation to get this stuff out of the ground…takes moving heavy equipment. It is mostly temporary, but the rest of the country doesn’t allow this activity very easily, or at all in some states. We have pipelines that go to these states and supply them. They should be charged additional premiums for the resources if they won’t let them be mined from thier backyards, don’t you think?
August 1st, 2008 at 2:56 pm
One more thing Buzz Kill, no one will become a millionaire unless they have a big chunk of land. What you will get is the option to continue buying energy. You could always stop using energy, and that would stop the madness.
August 1st, 2008 at 3:46 pm
gee HRB your such a buzzkill!!! whats it hurt to let folks dream about some mail-box money that might lettem’ afford some finer things that life offers.
August 1st, 2008 at 4:03 pm
I am all for it…I get a little mailbox money myself. Just sayin’ if you only have one or two acres, you might want to keep your day job.
August 1st, 2008 at 4:07 pm
Oh now you tell me!
August 1st, 2008 at 4:24 pm
….so me and my .15 acre ,i should be lookin for a second job.???
August 1st, 2008 at 6:38 pm
Yeah, the millionaire comment was meant to be a little sarcastic. People seem to be coming down with the “Beverly Hillbilly Complex” around here!! I honestly don’t mind all of the wells going up, but I just think the roads should be maintained and the truckers should slow down. By the way, I’m not sure how long is “temporary” but these wells have been up for over two years!!
On another note, before now I haven’t commented, but I love your blog, Sherri! My husband and I get our daily laughs from the site!!
August 1st, 2008 at 6:53 pm
Well the problem is mostly because it doesn’t require a PhD to drive an oil field truck…it would likely help to complain to the operating oil company. They generally want to be good stewards of the community. These wells are horizontal wells, and as such require a long time to drill and a huge amount of artificial stimulation after drilling. This equals many, many, many truckloads of stuff.
Jay, I didn’t know you had so much land. Me and Ellie May are comin’ to live with you.
August 1st, 2008 at 8:55 pm
huh huh… you said “a huge amount of artificial stimulation after drilling”
August 2nd, 2008 at 2:43 am
HRB you and your missis and your youngun are wellcome any time matter a fact i got room for any and all the Talley clan .with my mailbox money ill enclose the sleeping porch and maybe get some indoor plumbin.
August 2nd, 2008 at 8:11 am
Haa..thanks for my first laugh of the day with these past few comments!
Buzz Kill, thank you and keep jumpin’ in here!
August 2nd, 2008 at 9:35 am
Jay, have you go a cement pond out back?
August 2nd, 2008 at 4:00 pm
…no but i got a big galvanized water trough for my lab to bath in ,you could soak in it on a hot day ,just dont take any of my rare callifornia misquitoe fish.
August 2nd, 2008 at 7:57 pm
I think my work is done here!
I’ll jump in on a lighter topic..maybe even change my name. I actually have a fascination with quotes as well. I taught high school for a few years..needless to say..I have quite a collection!
August 3rd, 2008 at 9:32 am
I enjoyed your contributions Buzz Kill. I wonder if we’ll recognize you by your next alias.
August 3rd, 2008 at 10:12 am
Buzz Kill, same here. I’ll come up with a category for you and everyone else to share quotes.