Seismic permit only?

Historically, my experience with family owned minerals has been traditional leasing with a seismic agreement as part of that. Recently, we could not come to terms with a company on a permit with lease option---basically don't like cherry picking for a pre-set low price.
After that, they now want seismic permit only. According to MS rules, a friend told me, they only have to get permission from one owner of a fractional mineral interest and they can proceed. I know it would be bad PR, but as I understand it they don't even have to have permission of the surface holder. There are tracts where we own surface and minerals and tracts where surface and portion of minerals sold (would we even be approached if other interest owners signed?), tracts where only surface sold.Our oil and gas attorney recently signed on with this company so he now can't advise us. We had talked to him about this group before they formed a relationship with him. Advice, observations?

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Permalink Reply by Dash Riprock lll on July 12, 2013 at 2:52
NM

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 12, 2013 at 2:58

It's never too late, Dash.  Unlike a reply posted in a discussion there is no time limit to edit a discussion that you started.  You can do it days even weeks later.  Find "Options" with the drop down arrow above your discussion title and to the right.  Click it then select "Edit Discussion".  Make your changes and then go to the bottom of the discussion box and click save.

Permalink Reply by Dash Riprock lll on July 12, 2013 at 3:44
Thanks Skip. I know laws differ LA-MS, but do you or others have thoughts about the above in MS.? I think in some spots permission for seismic is being obtained only from surface owners, none of the mineral owners. In the more usual case,where they have a fractional mineral owner as the surface owner, they deal only with that person. I want to find out if entire fee for the permit(although pretty small) properly goes to the surface owner or do mineral owners get part of the permit fee, surface owner get damage re-imbursement. Can they look at your geology for free? Generally do the various mineral owners get a proportionate share---what are the legalities? Just want to know the right way to do this.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 12, 2013 at 4:00

Dash, you're welcome.  I am not experienced with MS regs and codes.  I don't care for agreements that contain both permission for seismic and an O,G & M lease.  While you wait for someone to reply I suggest you look through the numerous past discussions on this subject that are contained in the archive.

http://www.gohaynesvilleshale.com/main/search/search?q=seismic


Oil & Gas ProPermalink Reply by Craig Cooper on July 13, 2013 at 8:59
A mineral owner permit is always needed for seismic data to be collected, processed, interpreted and used to assess (subsurface) hydrocarbon potential.

Seismic acquisition companies will do what they can to reach agreement & terms with both mineral and surface owners. Without mineral owner permits no subsurface data can be collected / retained which leaves holes / gaps in the larger data set and that creates a number of problems. Without surface owner permits the acquisition operations become more difficult.

As a general rule fees / reimbursements will differ between mineral & surface owners if ownerships are split. Also as a general rule permission from only one mineral owner is all that is necessary for operations to proceed. However, that is the least desirable situation and most companies will put a reasonable effort into securing permits from all owners (one of the reasons why it usually takes a fairly long time to put a 3D seismic program together and start operation).

Any surface damages are corrected and associated fees (negotiable) are paid to surface owners as soon as possible or as soon after operations end as possible.

In some instances mineral owners may negotiate rights to view the seismic data associated with their mineral rights. However this is generally pretty tricky and not really worthwhile since they are entitled to view the data only associated with their minerals. Unless their mineral rights cover an extensive area there is honestly nothing to 'see'. Also, interpreting geology from seismic data by anyone other than an experienced professional is very difficult.

Let me know if you have any other questions. Hope this helps.
Permalink Reply by Dash Riprock lll on July 13, 2013 at 10:29
Thanks a lot Craig. Good information.
Permalink Reply by KIM CASWELL on July 18, 2013 at 5:22
Dash I don't know if your surface or mineral owner but when I agreed to a survey I stipulated no blasting just cables. Other than mowing around the cables for couple of weeks there was no damages to property.
Permalink Reply by Dash Riprock lll on July 18, 2013 at 5:52
Thanks Kim. We have multiple scenarios with different tracts of our property 1)own surface and all minerals 2)no longer own surface but own portion of minerals 3) do not own surface but own all minerals. I think Craig answered my question about whether in MS surface owner has full say in whether seismic is done or does mineral owner have a voice in allowing a look at his (or her) geology. My impression is if even one fractional mineral interest owner gives the ok, then they proceed. As I mentioned, our O and G attorney, after advising us for some time in dealing with this company (and telling us not to do a seismic only deal)when recently approached by us said he could no longer advise us because he represented the company now. This left us in the lurch while we try and find another attny and get that person up to speed. Meanwhile the company is giving us a "deadline" to sign up or be left out. Glad to know it was a benign process for you Kim.

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