LTTE Rough Draft

To the Editor:

Jim Fuquay’s article on March 29 regarding “investors offering to buy mineral rights for future royalties” makes several interesting points, including the shady practices of the gas and oil companies. Mark Gresham states in the article, “I can count the number of honest royalty buyers on the fingers of both hands – and I’m not sure I’d use all my fingers.” That statement should immediately send up a red flag to anyone approached by the opportunistic royalty buyers knocking on the doors of Ft. Worth citizens. Their formula is simple: put up some eye-catching billboards (complete with celebrity endorsements), have a few meet-and-greet get-togethers to “clear the air” of any questions (of which no “regular Joe” has any expertise in which to even base a question), then offer a lump sum (which – if lucky – equals a whopping $5,000 in exchange for all the mineral rights once belonging to you and to future generations). Where are the experts looking out for our best interests? Where is the detailed planning and explanations of fine print? As the article points out, no one – not even the gas and oil companies themselves – really have a formula in which to formulate the royalties. While there may be no crystal ball, it certainly seems as if a carnival atmosphere has come to town.
Also, Mr. Fuquay’s article makes a point to remind the reader of the economic recession and its possible impact with regard to selling mineral rights. In this economy, the average person has the opportunity to participate in little more than taxes, code compliance, and regulations. All of the sudden, with a wave of hand and tap of a wand, a “one-time, lump-sum payment” appears. Should we take the bait? The average person may view this opportunity as economic expediency; however, the San Antonio gentlemen mentioned in the article reminds others in the same situation not to be dazzled by a check for $350,000. Sure, it sounds like a fortune to you or me, especially during hard times; but to the higher ups at the top-name gas companies, it is merely a pittance.
In addition, the article reminds the reader to consult with accountants or lawyers and to do the necessary research to avoid a fleecing. We mustn’t forget for one moment that the buyers of royalties are experts in their own fields and can easily pummel the seller who has not done his or her research. Unfortunately, the article does not mention a possible source that could give great insight into this situation: the generational, large land owners of Ft. Worth. These families have been dealing with the oil and gas companies for years – more than the average citizen can ever imagine. Their dealings have most certainly taught them one valuable lesson: you never sell your mineral rights. Once they’re gone, so is your bargaining tool. Large land owners are leasers, not sellers, and their advice is advice you can take to the bank – just ask their accountants.
So in the end, forget the old adage, “Buyer, beware.” In this day and age, the new cry is, “Seller, be careful!”

Garrett Vandergriff
Texas Christian University
g.d.vandergriff@tcu.edu

Author's note
This is the first draft of my letter. I think I did a good job of addressing the article's strengths and pointing out what the author failed to address in the article, and then using that to help make my argument. I feel that I might be ranting a little too much in some places so let me know if that is the case.