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Friday, February 17, 2012

LEASING ANALOGY: BRINGING IT INTO FOCUS

LEASING ANALOGY:
BRINGING IT INTO FOCUS

Leasing as a contact sport has never been so widely discussed or read about in modern times, but that is certainly what it has become. It can be compared in many ways to most of the sports we follow through-out the week and on week-ends.

CONSIDER: The contract is a PLAYER'S lease that spells out the $$ and %'s that will be paid the player during a specific Time Frame. It spells out the rules and expectations by which both sides must abide.

Federal and State Regulations are the REFEREES, but what affects the players (landowners) immediately is the leasing agreement they signed. Some of these documents favor the Team owners more than the players, while some provide well for the players too. Big numbers attract lots of attention ! What needs to be focused on as well are the "holds" the agreements place on the individuals involved.

Doesn't this sound like big-time sports?
It surely sounds like leasing too!!

Professional players don't draw up and negotiate their own contracts. That's not what they are "professional" at. Instead they look for and listen to savvy negotiators who have made a solid reputation for themselves. Marketing what their "player clients" have to offer to the broadest field possible, these agents have the job of bringing together team owners and players who want to be out front. In a "let's make everyone happy" world this isn't an easy job, but done well ... everyone does come out a winner.

As in any game excitement grows and the stress level goes up when extra innings and overtimes enter the picture. On the other hand while game delays can be disappointing, they serve to whet the appetite for upcoming action when it occurs. In leasing this can happen @ 4 stages ... marketing, negotiations, drilling, and production.

"Who wants to take their eggs to a poor market?"

Patience is the ultimate power that allows us to make the right move at the right time.

Players and on-lookers alike don't like "unnecessary roughness and/or unsportsman-like conduct", yet a poorly developed lease allows such to happen to our environment. Groups with professional representation on the same level that "pro" players have don't make that mistake. They take care of what they have ... surface and sub-surface.

The Wild Card in all this when it comes to the "Game of Leasing" is something we have no control over, i.e. the natural resources Mother Nature gave us ... their accessibility and marketability at any given time. We play the hand we have to the best of our ability, and like the teams we so like to watch, we become a strong team through joint effort.

It puts the Contact Sport of Leasing on a level playing field.

Janice L. Hancharick
4-County Leasing Group Coordinator

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