MISGUIDED ATTEMPT TO LICENSE LANDMEN by Bob Ashwander, HAPL Assistant Treasurer
House Bill No. 689 authored by State Rep. Marc Veasey, D-Fort Worth has brought into question the integrity of landmen. When I read the article by Mike Lee of the Fort Worth Star-Telegram that was printed in the February issue of the HAPL Newsletter, it appears that Mr. Veasey is of the opinion that every Lessor that signs an oil, gas and mineral lease should receive the same bonus consideration and royalty. Furthermore, according to Mr. Veasey, if every Lessor does not receive the same bonus and royalty it is because the landman doing the leasing did not act in an ethical manner. Apparently Mr. Veasey feels that the oil companies should pay bonus and royalty with no regard to location (geologically), complexity of title, or the number of leases to be acquired and managed in order to drill and produce a well.
Someone please call Mr. Veasey and let him know the difference in bonus and royalties that were paid in his district had nothing to do with ethics, however it had everything to do with negotiations. Purchasing an Oil & Gas Lease involves negotiations between a seller and a purchaser, much in the same manner as purchasing a horse, a motorcycle, a car or hey what do you know - real estate. Possessing a real estate license has not stopped real estate prices from being negotiated. Mr. Veasey, do something that will truly make a difference, work on educating your constituents about oil and gas leases. Let the people of your district know that if they are not sure about signing an oil and gas lease or for that matter any legal document, ask an expert or seek the advise of an attorney.
House Bill No. 689 proposes to regulate our ethical behavior. Mr. Veasey’s key to solving this contrived problem would be to have the State of Texas license landmen in urban areas. The Texas Real Estate Commission would determine where licenses are required for landmen to work. Surely all landmen know what experts Real Estate Agents are when it comes to oil and gas. I don’t know about the rest of you boys and girls out there in HAPL land but that scares the hell out of me.
This is where influence comes into play. Right now, without hesitation every Landman that reads this article needs to run as fast as they can and contact their Texas State Representative. If you don’t happen to remember who your Representative is then go to www.house.state.tx.us, scroll down to the “HOW DO I…” box and click on “Find Who Represents Me?”, enter your address and you will then have the name and address of your U.S. Senators and Representatives, continue to scroll down just below this and you will be given the name and address of your Texas State Representative. Call them, email them or even better write a letter, tell your Texas State Representative what a bad idea this is.
Should House Bill No. 689 become law the only things that will be accomplished will be the following: (1) Our government will get bigger (2) Business activity will be hindered (3) The cost of doing business for Landmen will go up (4) Landmen will be controlled by Real Estate Agents (5) We will be given another layer of bureaucracy to navigate.
Every member of HAPL should take the time to contact his or her Texas State Representative. If all 1,300 members take just a few minutes to make a call, send an email and/or write a letter, imagine how this could make a positive impact on the decision that is about to be made regarding the future of our profession.
In closing keep in mind that right now they say they just want to require licensing in select parts of the state. Knowing how most government agencies work, in no time at all every Landman in Texas and their dog will be required to have a license and we will all be governed by Real Estate Agents. If you think I exaggerate keep in mind that our Federal Income Tax was established to help meet the fiscal demands of the Civil War. When government says, “We are here to help you”, hold on to your wallet.
Let’s exhibit our integrity by exercising our influence, and impact a decision that will have a direct affect on our future. Contact your friends, family and especially your fellow landmen throughout Texas urge everyone to write their State Representative asking them to vote NO on House Bill No. 689.
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Feb 28, 2007