Replies to This Discussion

Permalink Reply by Bill Meaney on February 12, 2012 at 8:07

It varies with every company and the laws of the state. Not having dealt with Southwestern I don't know how prompt they will be. In most cases it is best to assume that royalty checks will arrive later than sooner...

Permalink Reply by cpj on February 12, 2012 at 15:28

Once the well is turned to sales, usually 2 to 3 months.

Permalink Reply by flex auger on February 12, 2012 at 21:26

I have been reciveing royaltes in the fayettville shale for 8 plus years. Arkansas law says they have 6 months and 10 days to pay you from the first sales. A new well in a new section can expect that for a certianty. If a second well is added in that section say the next year, then usually its 2 to 3 months and they add it on your check, but leagally it can be another 6 months and 10 days, its happened both ways to me. I have gone from one well in the (3 sections) that i have land in, to presently 10 within those sections and 3 partial wells from without the sections, pad is being built now for two more wells. I recieve checks from 3 outfits, SWN, XTO and from Caffey Brothers LLC and investment group who pay me the "extended" portion of my lease. In total my royalty is 22% before expenses. possible because of the LLC participated in the wells which i could not afford to do at the time, and the lease with them calls for me an "on top of" amount that the LLC gets as their portion of the well. SWN is very good about holding up their word and lease, i have had some trouble with XTO and none with the investment caffey group. We also have a shut in clause that gives a min payment per year when and if the wells are shut in beginning the first year, a water clause and a couple other goodies i think. If any of you get an offer to put a pond on your place, take it, frac water has made some guys up here rich, let them build the pond, they use the water and pay you, its a good deal and they  use it over and over, rain is making guys lots of money, i never got a pond but they like to put them in every section.

Permalink Reply by flex auger on February 12, 2012 at 21:48

When we see some stakes in the ground we usually figure 10 months to a year before a check arrives. You will fill out a division order they will send you if you have mineral intrest, some people got a shock and found out they did not own their minerals. There are all kinds of ways that happened also, one of the weirdest was the railroad sections, they were deemed to have the minerals from back in the 1800s even though recent documents showed the minerals, a very bad deal for some. There isnt a railroad within 50 miles of here, never was, go figure. Another tip, if you get a chance to sell some fill dirt, shale or open a gravel pit, do it, the amount of material they use will make you alot of money, dont haggle to hard on the price, a few dollars a dump truck load will make you more than a royalty check will, promise you that. pipelines arent that good a deal, dont pay but a couple dollars a foot and it ties up alot of land you cannot do much with forevermore. All and all, the big gas companies do things right and treat you right, the small guys are different they will leave you hanging or outright cheat you, go with the big guys and have patience and be civil and things will go ok. If you fret every rock they turn over or try to be a loud mouth hard to get along with person, they will avoid you and being avoided aka blackballed, does not pay you anything. I hope the brown dense is as good or better for you folks as the fayettville has been for us , we would have no jobs or money if not for the gas companies and all the support companies.

Permalink Reply by flex auger on February 12, 2012 at 22:08

Excuse me for being long winded here and hogging space but id like to give you any ideas about how to make money off the boom if there is one going to happen there like it did here. The first thing i was told by some gas company guys years ago was that water was going to be their biggest problem, getting it, moving it, getting rid of it. That is very true still to this day 8 years later. I mentioned a frac pond earlier, a good money maker for anyone, i forgot to mention an "injection" well or salt water disposal well they call them, a VERY good deal, one of those will make you rich, GIVE them the land if you have to but get that well and you can retire, you will get paid for millions of truck loads of water, i would trade my 10 gas wells for one injection well in a new york minute. Country stores will hire people to cook hamburgers, you wont be able to find a house to rent, car lots will sell out heck set up a lemonade stand this summer or sell cold watermelons they will scoop them up!

Permalink Reply by Chip Sanches on February 13, 2012 at 4:41

Flex,

 

That is probably the COOLEST post I've seen on the GHS site ever!  Be careful, someone's gonna come after you to be a star on one of those reality shows!  Great info.  Continued best of luck to you!

 

Chip Sanches

Permalink Reply by flex auger on February 15, 2012 at 7:00

SWN has a good reputation here compared to cheasapeak, BHP, XTO or any of the very small drillers like storm cat, now bankrupt. They will tear the highways up pretty bad but if you can live with that for a few years they will fix them. The gravel roads have never been better in my lifetime, they have to gravel them to get around, a gravel pit will make a mint! SWN donates to all the local fire departments and charities generously. We have had 3 bad tornadoes in the last few years if not for swn their men and equpiment we would still be trying to cut our way out. If the play works out good they will set up a "yard" or multiple yards for pipe and equip, they will hire yard hands by the dozen, truck drivers by the hundreds. You gotta have a drivers license, pass drug test and no felonies to get hired for anything. If your in construction (hoes and dozers) get on their vendor list ASAP    you will get work.  Of course pipeline welders are in demand but regular old welding shops can build cattle gaurds and gates for a long time. They are just good for any business actually.

Permalink Reply by Skip Peel - Mineral Consultant on February 18, 2012 at 5:45

Sometimes the site software will not allow you to place a comment where you would prefer although it makes for choppy discussion threads remember that the person to whom you address a question will still receive an email alert and find your reply.  Chuck, please delete your first post.  Just click the small "x" in the upper right corner of the reply box.  Thanks.

Permalink Reply by Skip Peel - Mineral Consultant on February 18, 2012 at 8:47

You're double post is still there Chuck.  Remember the little "x" in the upper right corner of the reply box?

Permalink Reply by Herman (Chuck) Plonnigs, III on February 18, 2012 at 9:12

Mr. Auger…Skip is very graciously teaching me how to drive and it is very much appreciated.

 

I have just been educated on the use of this site, even though I have been communicating on it for a while…ow well live and learn.

 

The point of this whole thing is in your reference to salt water disposal well.

 

The question is) is there a specified depth to which this things need to be drilled 2) is there any particular formation that is preferable? 3) how would one estimate the volume of water any given well could accept and how would one know how to contact interested parities than one is available in the North Central portion of Union Parish? We have one drilled on our land to address some shallow stuff we are currently trying to deal with?

 

I will thank you in advance here.

 

Thanks…Chuck

Permalink Reply by John Brewster on February 19, 2012 at 9:15

I have been waiting with interest to see how Mr Auger responds. SWD wells are permited by the state regulatory bodies. Permits specify the depth to be drilled, the horizon to be injected, and the permitted volumes. I do not know how Mr Auger suggests one can get rich from SWD wells. Many leases give lessees the right to drill them at no cost. You can require a payment in the lease, but the payments will not in any way compare to royalty income off a producing well.

Permalink Reply by Cal Carter on February 19, 2012 at 8:51

Here's an interesting read.  Of course keep in mind they are selling a newsletter, but I hope what they are saying is correct.  Would be nice to get Skips thoughts on what they are saying.   (note: link will try to play long video, you can cancel the page load and it will load the text of the video for reading and quick scan)  http://agorafinancial.com/reports/OST/Rebirth/OST_Rebirth_011012_ES...

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