Surface Revenue

[WRAPper]

Something I have noticed happening which isn't good is the trend towards lower land values in leases. When we first signed leases in 1989 we were buying land for 400- the lease paid 800, double.
In 1996 we were paying 800 for land leases were 15-1600 on land value. Still roughly double.
In 2004 we were paying 1200 for land and the leases were then 2000 for land value. Starting to slip.
In 2006 they are back we paid 1400 for land last fall they are still at 2000. I won't sign at that some are though.
I hear that in areas around Olds land is trading near and above 3000.
Land companies are offering land value of 3000 sometimes less.
Why????? The industry always cites precedent when dealing, well the precedent was set years ago 2 times land value for leases. 2800-3000 closer to 4500-5000 near Calgary. Is where it should be, I agree they have a right to work their minerals but I didn't go to them they came to me.

[Horse]

When I renegotaed my last time they offered a sighing bonus of 1500$ I told them to just add that to the rent anualy and I would sign but they wouldnt because that would set precedent in rasiny the rent by $300 per yr so we went to arbitration and lost the signing bonus but the chair agreed that a sighing bonus was just a way around raising the rent but they knows who butters thier bread but in a yr it will be time to try again so if anyone has any ideas I would like to hear them.

[cowman]

Again Horse, join the surface rights group. You will find out exactly what other people are getting? If you can do better then share that info!
I find it funny how people are so secretive with the neighbors, don't want them to know what they are getting or something? The landman just loves that attitude, gives him lots of room to play his games!

[cowman]

And landmen hate to have the local surface rights group lease form waved under their nose because they know the farmer has a lot of background info on lease compensation !