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Permalink Reply by Skip Peel - Mineral Consultant on March 10, 2010 at 17:00

It does not matter what company holds your lease. If your minerals are pooled in a unit, a producing well will hold that lease in force for the length of production. If your lease does not have a depth clause, the lease will remain in force for all depths. And the operator may drill future well in whatever formations are covered by the lease whenever they deem it profitable.

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Permalink Reply by S.H.M. on March 11, 2010 at 0:35

I have to add my two cents. Having the depth clause in our last lease was a stroke of genius (or luck). But, only one other landowner in our section had that clause. So "the company" is putting pressure on us for our HS interests with the foreboding phrase "forced pooling".

As a side note...I hate the terms "mailbox money" and "...let's all go shopping". It ignores the sweat equity investment in our surface acreage (and foresight) that has been an asset of the family some fifty odd years. (Minor rant mode off.) Does anybody understand what I am saying???

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Permalink Reply by sesport on March 11, 2010 at 1:05

SH - Sweatin' like Richard Simmons on a cruise line here. lol There are varying degrees in POV regarding the surface, for you & yours it seems equally as important as recovering the minerals (maybe I'm wrong?). It is, after all, where we live on a daily basis and what sustains us. To others, it's a business and it seems the POV is that if damages happen a good lease will ensure they be repaired. Haven't had that experience myself (yet), so I don't know how well that works out.

There are those of us that attach some sentimental/emotional significance, others apply analytical/logical/pragmatic significance. Some of us do a little of both. At the end of the day, I understand there's a watering hole around here somewhere where all meet & greet & sing "Kum Bye Yah."

BTW, if it's been an asset for 50 odd years, what did you guys do in the even years? ha, ha

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Permalink Reply by S.H.M. on March 11, 2010 at 1:49

LOL. For our family, I'd say they were all odd years. grin

I think you get my point. "The Land" (and the good lord) have been good to us through adversity. I regard the homestead, more and more, as I get older, as a single spot of solace and serenity in a continually changing world. No traffic jams or crowded malls for miles.

We haven't put up compound fences yet, but I have them on back order.

I am sharing too much. grin.

That watering hole sounds like fun. I'd love to meet some of these forum personalities.

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Permalink Reply by Skip Peel - Mineral Consultant on March 11, 2010 at 2:12

S.H. You've been an active member long enough to not be intimidated by the term "force pool". When a landman uses the term just say, "fine, go right ahead". The operator may force pool you but they can not force you to take a lease you do not find acceptable. Forming a unit allows a company to "force pool" all mineral interest within its boundaries but that unit can sit there forever undrilled if your proportional unleased acres in the unit make it uneconomic.

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Permalink Reply by S.H.M. on March 11, 2010 at 2:21

Thanks Skip. And I do understand. I guess I have a hair trigger for "tactics". I'd never want to cut off my nose to spite my face (though, I have never liked my nose).

Thanks!!!!

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Permalink Reply by Jimmy Stiles on March 10, 2010 at 17:27

Thanks Skip! That answered all of the questions I wasn't able to succinctly include in my first one about depth etc... The well does have a depth clause and it is to the bottom of the haynesville, which would include the bossier. I kind of thought that, but was not sure and couldn't find any clear information about it. It is interesting how you put it that the well holds the lease. I never thought of it that way, but it makes good sense.

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Permalink Reply by Checkmateking on March 10, 2010 at 17:35

Yes as soon as they have one well producing they can come back and drill all they want

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Permalink Reply by Jimmy Stiles on March 10, 2010 at 17:51

That seems like it would generally be a good thing, right?

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Permalink Reply by sesport on March 11, 2010 at 0:23

Jimmy - Skip's last sentence tells, in essence, what would happen ...

"And the operator may drill future well in whatever formations are covered by the lease whenever they deem it profitable."

Now, IMO, it is a subjective thought as to whether or not it would "generally be a good thing." that being subject to your POV and temperament. lol

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