Replies to This Discussion

Permalink Reply by obed w odom on January 25, 2015 at 16:41

Don't you mean 10 square miles=10 sections and 10 miles square=100 sections?

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Permalink Reply by Tom Fields on January 25, 2015 at 16:57

You nailed it. Had this same discussion with my son last night.  Ten square miles should be 10 sections.  Ten miles squared would be 100 sections.

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Permalink Reply by Skip Peel - Mineral Consultant on January 25, 2015 at 16:57

Yeah but the difference is immaterial to the answer.

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Permalink Reply by Skip Peel - Mineral Consultant on January 28, 2015 at 13:38

Ed, TSW is a land company, not an operator. They are not allowed to take out a permit to drill. Only an operator recognized by the state may apply for a well permit.

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Permalink Reply by Eric Polansky on January 28, 2015 at 15:48

Ahh ok , thank you ... Appologies" first experience with this endeavor . What would be the process ? For us newbies

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Permalink Reply by Skip Peel - Mineral Consultant on January 28, 2015 at 16:24

Energy companies that drill wells (operate) do not maintain a lot of landmen on their payroll.  When an energy company wishes to acquire development rights in an area they hire an independent land company to perform that work.  The land company works under contract to secure the leases usually in their name.  In that case they will assign the leases to their client at a later date.  In some instances the land company executes the leases in the clients name but generally energy companies prefer to keep their name confidential. 

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Permalink Reply by Eric Polansky on February 1, 2015 at 2:34

Also I have another ? About gas .. Do they harvest both at same time and or are they two seperate wells? Basically does it go one or the other? Or both?

Permalink Reply by Skip Peel - Mineral Consultant on January 29, 2015 at 1:39

When a land company works on behalf of a client they do not sell the leases, they assign them.  The land company's compensation was agreed to before leasing began.

Royalty is paid only when an operator sells production.  It can be 3 to 12 months after first production before mineral owners begin to receive payment.  Not all wells turn out to be sufficiently profitable to operate.

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Permalink Reply by Eric Polansky on January 30, 2015 at 5:04

Thank you very much skip I wasn't sure

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Permalink Reply by Eric Polansky on February 1, 2015 at 2:29

Thanks for bringin me up to speed on that Skipp .. Your expertise is appriciated!

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Permalink Reply by Skip Peel - Mineral Consultant on February 1, 2015 at 2:39

Eric, please re-word your question.  Both what?

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Permalink Reply by Eric Polansky on February 1, 2015 at 3:22

Are oil" and n-gas" two separate entities?(separate payouts) And how does that work when it comes to oil and gas lease?

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