Agelio Networks Blog

New Lease Bonus Web Widget and Facebook Application

Bill Sinclair — Thu, 23 Apr 2009 16:25:17 +0000

In the recent weeks Agelio has increased our presence in the ever growing world of social networking. Many of you are already familiar with our FREE community site for mineral rights owners, MineralPlace.com, if not please stop by.

We also know that there are many options out there for connecting with your friends, family and even favorite companies. You can now follow us on Twitter at http://twitter.com/agelio or visit our facebook page. We even have a mobile version of MineralPlace.com for you iPhone, iTouch or other mobile devices located at http://mineralplace.com/m.

Just today we added our oil and gas lease bonus information database as a web widget, which you can use for your own site or blog: http://s.agelio.net/h. If there are other social networks you like or have ideas for us on how to improve our existing applications (or even create new ones) please contact us to tell us about them. We look forward to seeing you on one of our many destinations soon!

Dormant Minerals

Bill Sinclair — Tue, 03 Mar 2009 17:00:26 +0000

Dormant mineral rights are the central focus of a new House bill in Texas (PDF). Currently, 21 states have some form of a dormant minerals act. I have included a spreadsheet that outlines them by state. It was kindly provided to me by fellow NARO board member Linn Willers at Wachovia.

There seems to be consensus that the intent of such acts is to encourage oil and gas production by making it easier to contact mineral owners. The assumption is that after a number of years have passed (the number varies by state) since the severing of the minerals from the surface, the mineral owner could be difficult to find. This in turn could make it difficult for the operator to track them down for leasing purposes, which would delay production. Although this is well intended, it can also mean that an owner’s descendents could loose their right to production if the owner was not proactive in maintaining affidavits of ownership (example from Linn).

Although I could probably make arguments for both sides, I’m merely pointing out that dormant minerals acts are here and it is the responsibility of mineral owners to file affidavits of ownership in states that require it. The alternative of course is to do nothing and risk loosing your right to future bonuses and production.

We have made preparing these affidavits very easy for users of MineralFile. They can simply print reports detailing their ownership in each state and county for filing purposes. We encourage you to take a free test drive of MineralFile to help you with this process.

Files:

Texas House Bill 8341

Dormant Minerals by State

Affidavit of Ownership Example

Royalty and Mineral Rights Issues: A Q&A with Bill Sinclair

Bill Sinclair — Mon, 09 Feb 2009 19:13:35 +0000

In lieu of a blog entry, I woud like to refer everyone to my interview with the Fort Worth Basin Oil and Gas Magazine. I was asked about a number of issues pertaining the mineral owners and I think you all will find the article very interesting. As always I look forward to your feedback.

Royalty and Mineral Rights Issues: A Q&A with Bill Sinclair

Hello 2009?

Bill Sinclair — Mon, 19 Jan 2009 17:53:17 +0000

The New Year is in full swing and while many U.S. citizens said goodbye and good riddance to 2008, I can’t help but wonder what 2009 has in store for mineral and royalty owners and the natural gas industry in general. Last year brought new fortunes of “Jed Clampett” proportions to mineral owners in the Haynesville Shale of Louisiana and parts of East Texas. Mineral owners in the Marcellus and Barnett Shales were also taking large bonus monies to the bank as landmen scoured the rich formations and scooped up as much property as they could get their hands on. Oil and gas producers cheered with every new rig and dollar signs flashed everywhere you could think of the phrase “unconventional shale play.”

Then, nearly as quickly as mineral owners were cashing in their bonus checks demand plummeted and Judy Holliday started crooning The Party’s Over. Prices fell and oil and gas companies were left with a glut of production. Mineral owners who were holding out for bigger deals may be stood-up for the time being.

But for how long?

Even oil and gas industry experts around the country who’ve seen the highs and lows of supply and demand roller coaster for decades are perplexed at what the future has in store. With the new administration a day away from taking office, many industry experts are hoping that Obama and his team realize the potential of the glut of natural gas that exists in our country. Perhaps it’s time to cramp on coal’s style and leave the earth a little cleaner with more natural gas use. It doesn’t look like we’ll be running out of it anytime soon. One consulting firm estimated that America’s potential gas resources may total 2,200 trillion cubic feet (Bryce, Energy Tribune).

Perhaps it’s time for a brainstorming session with the new guys in the Oval Office?

A peek into the past : No bailouts for the oil and gas industry

Bill Sinclair — Sun, 14 Dec 2008 19:52:39 +0000

With the proposed bailouts for the American automobile industry making headlines, I can’t help but think about the times when the oil and gas industry faced similar dire straits. The 1980s oil glut was a surplus of crude oil caused by falling demand following the 1973 and 1979 energy crises. The world price of oil, which had peaked in 1979 at more than $35 per barrel, collapsed in 1986 from $27 to below $10. Tens of thousands of employees lost their jobs due to the drop in demand yet in spite of the six-year dramatic decline, oil and gas companies never received government assistance to bail them out.

So what will the “bail out” really do for the automobile industry in the long run? Is a Band-Aid really the proper remedy when it would take a tourniquet to stop the bleeding? The energy industry overcame its malady without a handout and it might be the proper medicine for the automobile industry to do the same. Think about the airline industry for a moment. I don’t want to single any one company out, but I bet we can all list a few who have filed for Chapter 11. The consequences didn’t mean consumers couldn’t grab a flight to Boston or Mexico, but forced the airlines to reorganize their operations.

And let me add that while the United States and the rest of the world is extremely dependent on oil and natural gas production, we could all live without the next Hummer H2.

Now I’m not an investment banker, economist or Nostradamus, but taking a lesson from our history leads me to believe that companies have been able to come out on top without Washington stepping in. And on a macro level, what does this teach us as an American people? I know too many who have lost their jobs through no fault of their own and I don’t see the government stepping in with severance packages.

Isn’t America based on the foundation that if you work hard you will succeed? What ever happened to “teach a man to fish?” I have yet to hear of the wise adage that states “grant GM multi-billions when they cry Uncle.”

Landmen Revealed

Bill Sinclair — Thu, 30 Oct 2008 16:41:46 +0000

For most mineral owners, their first encounter with the oil and gas industry comes from a Landman seeking to lease the mineral rights. Generally, the attitude and initial lease offer sets the tone for the relationship between Landman and mineral owner. We think it’s important for mineral owners to share their experiences from the landmen they’ve encountered to promote those who do a fine job and to warn mineral owners of those who tend to be abrasive, predatory and who might lack pertinent knowledge of the industry. Please join our FREE community forum and post your experiences about the landmen you’ve encountered and read up on other members’ experiences. The more we know as mineral owners, the better prepared we’ll be to make important decisions about leasing our assets. To join our community visit www.MineralPlace.com and click on the “Forum” tab to participate in the conversation.

Leases dwindling during economic crisis

Bill Sinclair — Thu, 09 Oct 2008 17:01:15 +0000

The economic crisis we’re facing in the U.S. has seeped into the oil and gas industry. Lease offers are dwindling as well as the lease bonus dollars being offered for the few that are out there. The cause? Even though oil and gas companies are thriving amidst the new technology which allows them to drill in unconventional shale plays, these operators use credit rather than cash to conduct drilling operations. As many are realizing, it’s difficult to purchase anything on credit due to our current eonomic situation. Oil and gas companies are facing the same predicament and must trim their exploration efforts until it’s feasible to borrow again. In addition oil and natural gas prices have softened making it less profitable to operate.

Lessons from the AAMO Conference

Bill Sinclair — Thu, 09 Oct 2008 16:20:14 +0000

Last week Agelio Networks attended the American Association of Mineral Owners Conference in Houston. We were amazed at the hard work the city had put into repairing its town post hurricane Ike and enjoyed the most friendly service from local Houstonians.

Bruce Vincent, president, secretary and director of Swift Energy Company, gave a concise and eye-opening presentation of the great myths that exist in the oil and gas industry. I thought I’d share these with you all.

Myth: We’re running out of oil.

Myth: We don’t need more drilling.

Myth: Granting more access for more drilling won’t help our high gas prices today.

Myth: We can’t afford to drill without hurting our environment.

Myth: New taxes on the industry will help.

We heard from several speakers from all areas of the industry, yet one singular message reflected each of their presentations —education, education, EDUCATION! At Agelio Networks, we coldn’t agree more. Here’s a link to help increase your knowledge of the oil and gas industry www.energytomorrow.org.

Thank you Little Rock

Bill Sinclair — Thu, 25 Sep 2008 22:19:33 +0000

We just wrapped up the National Association of Royalty Owners (NARO) National Convention in Little Rock, Arkansas. We were excited to see some familiar faces and meet new NARO members from all different parts of the U.S.

We’d like to thank everyone for supporting our product, MineralFile. We’ve listened to many stories from attendees who are in need of an accurate, reliable, cost-effective and easy to use management system for keeping track of their assets and are so relieved to have found a product that meets their needs.

Check out our new Web site www.mineralplace.com. Mineral owners from across the U.S. can chat about their concerns, questions and general knowledge about mineral ownership. Join today!

New Mineral Owners Community

Bill Sinclair — Wed, 03 Sep 2008 19:00:48 +0000

We’ve been tracking the many community sites available on the Web designed to help mineral owners make smart decisions about their mineral rights. We noticed some of these communities are limited to certain geographic areas and topics. We‘ve created a site for mineral owners across the U.S. Here members from any part of the country having any level of knowledge about the world of mineral ownership can discuss their issues and share news, information and questions.

At www.mineralplace.com we encourage you to contribute content such as photos, videos, events and forum topics. We believe the more involved you are as a mineral owner, the better prepared you’ll be to handle your mineral asset management like a pro. If you are an experienced mineral owner or industry professional please help others by answering their questions that are posted on the forums.

Come join us--you may even learn a thing or two! www.mineralplace.com