Why should I sign an engagement agreement with NCOG instead of a lease with an Oil & Gas Company?
What does an engagement agreement entail?
Why do I need you, I can negotiate my own lease!
How much of my land will be cleared if they drill on my property?
If timber needs to be cut, do I contract with the timber company that I choose or does the gas company pick the timber company?
What is the cost for me to join this group of like minded landowners?
What’s in it for NCOG?
The leases that I have seen from the other gas companies seem to protect their rights not mine.
Might lease terms get better with time? Should I wait to see what happens?
I am not going to sell anybody my mineral rights!
Why should I sign anything now?
Q: Why should I sign an engagement agreement with NCOG instead of a lease with an Oil & Gas Company?
A: If you sign a lease with any company, the deal is done, set in stone, never to be changed. NCOG on the other hand is trying to help initiate a movement of the landowners collectively working together to force the BIG oil and gas companies to pay a more equitable split in the gain from production of gas and oil on “our” land. They are trying to set leases at rock bottom prices. We want to even the playing field by working as a group in order to have a bigger voice at the negotiating table.
Q: What does an engagement agreement entail?
A: By signing our engagement agreement, you are allowing NCOG to represent you through the attorney that we have on retainer. There are any number of events that could take place to ratchet up the bonus and royalty amounts. By signing our engagement agreement, you are able to wait until a later date to work out a lease. When the time comes we will shop this opportunity to a number of Oil and Gas Companies. Then with our Attorney’s guidance we will craft a lease that addresses our landowner rights as well as Royalty and Bonus Payments.
Q: Why do I need you, I can negotiate my own lease!
A: The truth of the matter is that none of us individually have enough land of our own to negotiate a better deal. Only by pooling our land can we get the attention of these big companies. NCOG will foot the bill for our attorney so that each individual landowner does not have to pay legal fees. Jim Mills, our attorney has worked in and around the oil and gas business for many years and will work hard to negotiate the best deal he can for all of the landowners who choose to join our group.
Q: How much of my land will be cleared if they drill on my property?
A: Approximately 3-5 acres for the drill site and if a road, pipeline or power line is needed they will clear a right of way. You will be paid for any marketable timber that is harvested.
Q: If timber needs to be cut, do I contract with the timber company that I choose or does the gas company pick the timber company?
A: You can handle this process if you choose or the gas company will handle it for you and have the proceeds come to you.
Q: What is the cost for me to join this group of like minded landowners?
A: There is no cost to you. NCOG will pay all expenses in this endeavor including: legal, marketing, website costs, general business expenses, etc.
Q: What’s in it for NCOG?
A: NCOG will receive a small percentage of any bonus negotiated and royalty received.
Q: The leases that I have seen from the other gas companies seem to protect their rights not mine.
A: You are correct and this is another reason for the formation of NCOG. We want to have a say in what happens to our land and we will work with our attorney and an advisory board of local landowners to craft a lease that protects our rights.
Q: Might lease terms get better with time? Should I wait to see what happens?
A: Some landowners are hesitant to commit to any agreement right now thinking that as time goes by lease terms will get better, WE AGREE 100%.
And yes, it would be in your best interest to wait to sign anything if your only option were a lease. However, our Engagement Agreement is not like our competitor’s Lease Agreements. Our Engagement Agreement does not cap or in any way limit either the Bonus Payments or Royalties you would receive, which is exactly what their leases do. If you sign any of our competitors’ leases-all negotiations end. You have just signed that absolute best deal you will ever sign. With our Engagement Agreement you are keeping your options open and allowing NCOG to negotiate on your behalf. This will take place only after significant events occur making your mineral rights more valuable. We will then craft a lease and present it to all landowners for approval.
Q: I am not going to sell anybody my mineral rights!
A: We do not want to buy your mineral rights. We only want to help the landowners work as a group so that we have a greater voice at the negotiating table. At some later date, we will craft a lease that protects our rights and allows us to maximize the bonus and royalty payments that we receive. Even then you continue to own the mineral rights to your land.
Q: Why should I sign anything now?
A: We think landowners will see the benefit of what NCOG is trying to do with our Engagement Agreement. If you do, then let us offer an explanation of why signing now is better than signing later.
Let’s face it, the terms of your lease will determine many things. Are you and your land protected? Is your Lease assignable? Have you received a fair Delay Rental clause? And have you negotiated the highest Bonus Payments and Royalty?
It is only by working as a group that we will have the power to influence the terms of the eventual lease. We feel the time to mobilize is now before events occur that can affect Bonus and Royalty Payments. What if that event were the passage of laws allowing Horizontal Drilling and what if suddenly Oil and Gas Companies were now ready to negotiate. Wouldn’t you much rather be in a position to negotiate from a position of strength having already mobilized as many landowners as possible rather than having to scramble to amass enough land to interest those companies?
The reason to sign NCOG’s Engagement Agreement now is to take control of the negotiating process. This is the only way to increase the odds of getting the absolute best deal.
