Unleased, forced in to pool for producing well, what now?

I have read a lot on here and it clears up some questions, but I wish someone could tell me what to expect here.

My M-I-L owns a very small, .1 acre lot, in Keithville. The land was never leased, but now CHP has a well under it, on line and producing . I talked with her neighbor and she said, she got a letter from CHP saying that in January they would receive papers explaining the royalty payments they could expect to start getting soon. A land man representing CHP called me this week wanting to lease the property for $100 an acre, so she would get ten bucks and 25% royalties. I just told him no, force pool her. Now I don't know what I have done.

Will she get more royalties being forced pooled?

Am I right she won't get anything until the well is paid for?

We don't have any paperwork with CHP now, what can we do to make sure she gets something?

I just thought with only a 10 buck bonus, it might be better to just wait it out and see if she wouldn't come out better this way. This is the well off the Mansfield road near the Keithville cemetery. T16 R14 S28 i think

There isn't enough to made off this tiny property ether way to justify going to a lawyer, so I am coming here to seek what ever advice you all might have to help her get as much as she can.
Thank you for all help.

Tags: force, pooling, royalties

Views: 189

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Replies to This Discussion

Permalink Reply by The_Baron on November 24, 2008 at 8:19
I resent that comment earl.

I am a on a salary. My company charges supervision and overhead to all of our working intrest owners. I'm sure you could say some of that money pays me.

If my attention is required at the well, I bill that as extra time (contract labor) plus milage and expenses.

It may break your heart earl, but I don't work for free.
Permalink Reply by Bob on November 24, 2008 at 8:25
pretty funny though, huh?
Permalink Reply by The_Baron on November 24, 2008 at 8:59
I was refering to overhead being billed to the wi,

That would be outlined in the operating agreement.

To answer your other question, in a vague way, I do quite a bit for my salary. One example of extra work would be going to the location to witness a frac or dst as company represenative. This extra work would normally be after hours or on weekend. A dst for example, would require me to spend the night in my car at the location, if it wasn't close to home.
Permalink Reply by Bobi Carr ("parker") on November 24, 2008 at 9:49
In my layman's understanding, it would seem that force pooled land owner would not be a party to any issues of liability, should any occur.
Permalink Reply by Les Bamburg on November 24, 2008 at 10:14
Parker, there may be certain "expenses" that could legitimately be deducted from the unleased mineral owners share of revenue.
Permalink Reply by Grillin' - MmmMmm on November 24, 2008 at 15:49
Can't reply to the message I wanted to but hopefully this will tie.

In terms of what a company charges, there are COPAS overhead charges that cover general overhead of the company. Not included in COPAS are wellsite expenses and operating expenses at the first level operating supervisor and anyone who reports to him. So, a pumper who works for the company is included as a lease operating expense as are any direct costs for the operation and/or drilling of the well. Plus the drilling supervisor/company man is charged to the well cost.

Now, if an engineer or geologist (most of whom are salaried) have to go to the well to supervise logging, testing, fracing, etc. the company charges the well expenses for his time and transport while he is on the well site. NOTE: the particular engineer does not get "paid" this expense. It is a bookkeeping expense that goes to the well expenses to reimburse the company for the portion of the salary they paid the engineer while he is working on the well. This is a very standard procedure and has been in place for many many years. Nothing sneaky or shady about it.
Permalink Reply by jim neely on November 29, 2008 at 8:12
if we are leased to an e&p that has a minority of the land in a unit and for some reason the operator and other holders can't agree on a budget for drilling can i still be forced pooled ?
Permalink Reply by The_Baron on November 24, 2008 at 8:33
No one pays me to post.

I have been in the industry for some time. I come from a family that has been involved with oil and gas for over sixty years. My party line probaly comes from the historical ties that I have to the industry. I am fortunate that my job allows me to experiance the oil and gas buisness in many ways, from landwork to sitting on wells.

If you allowed your eyes to open and see how the industry has benifited this region and the state, how our mineral code has formed to benifit the industry and the mineral owner, you might understand what I speak about on this site.
Permalink Reply by Grillin' - MmmMmm on November 24, 2008 at 15:52
Do you really think O&G companies spend money having people post on a bulletin board like this? Come on. Really? I work for a company and work with lots of companies but this is strictly on own personal time for entertainment purposes or to help folks out. I'm guessing The Baron is likewise. The company really wouldn't gain much from having someone post anything cuz most of you folks don't believe it...you want proof. Which is good! Believing anything posted on an anonymous bulletin board is dangerous. Using it to get leads to do research on is priceless!!
Permalink Reply by BirdDawg, plain ole' idiot on November 24, 2008 at 16:24
KB,
You reckon?
Permalink Reply by BirdDawg, plain ole' idiot on November 24, 2008 at 16:23
Mmmarkk,
Your right. And I stayed at a Holiday Inn Express last night!
Permalink Reply by d. blizard on November 24, 2008 at 13:30
Need to check la. laws about forced pooling. She needs to send them a registered letter requesting the info. about the total cost of the well. The production each month and expence. She is intitled to this info. and more. You can find the infomation you need on the internet. Whatever she gets, 100 percent is more than 25. If they are not giving any bonus 100 is better than 25 for sure. She need to keep watch on them because they are in it for #1 only and if they can take your oil and gas i beleive they will. Find out what they can legally charge for and watch them close.

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