Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on July 12, 2010 at 9:55

What company is going to drill your section?

Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2010 at 9:56

No company has "the rights to your land". Chesapeake holds the drilling unit order for your section but you are free to negotiate with any interested company and enter a lease with the one that offers the best terms. Chesapeake as the operator of the unit will be required under LA. Mineral Code Forced Pooling provisions to pay you your proportional interest based on the terms of that lease. Early offers are rarely the "best" offers. I advise my clients that negotiating after the well has begun drilling is usually in the mineral owners favor. Lease terms are the first priority with a quarter royalty, no cost royalty and vertical and horizontal Pugh clauses being the most important, IMO. Once you get an agreement for those clauses address bonus. I would think that $5K would be the least that is acceptable. How much more than that you request is up to you just realize that if you get too far out of the ball park, you likely will not get much consideration for 23 acres and Chesapeake can and does drill with more acres than that unleased in a unit. I suggest that you use the services of an experienced O&G attorney. Good Luck.

Permalink Reply by Two Dogs, Pirate on July 12, 2010 at 10:11

Section 9 is part of the lignite mine. CHK probably has 160 acres under the Nabors property. Map shows 320 acres that belong to Martin Timber (Indigo). Running DeSoto records under STR shows PHK leases taken recently but nothing else as for leasing.

Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2010 at 10:15

TD, don't you think that CHK has the Indigo acreage under lease also. Has this section been mined yet?

Permalink Reply by Shayne S on July 12, 2010 at 10:29

The acres that we own was mined for lignite in the late 80's and was reclaimed after that. We got checks at that time. Thanks for all the info you are so knowledgeable!-as soon as the purchase is recorded we are hoping to enter into a lease.

Permalink Reply by Two Dogs, Pirate on July 12, 2010 at 10:33

They haven't released anything and the lignite landwoman told me that there was a big dump truck parked on the tract just to the South of what I am thinking is Shayne's property. It is a complicated area and to make a call on who owns what would take extensive research as far as the Martin tracts go. Martin may not have minerals. The Dolet Claim takes in more than half of the section. There were wells there before the mine and the mine is keeping prescription from running.

Permalink Reply by Shayne S on July 26, 2010 at 8:58

what does prescription mean? i have tried to find a def. for this in terms of gas and have come up empty

Permalink Reply by J B Nabors on July 12, 2010 at 16:53

Skip's post was the best you will ever find regarding leasing. DO NOT LEASE until you (or your attorney) understand every single word and phrase of his post.