Why sign a lease ?
I am hesitant to even ask this question but I just cant decide what to do. My husband passed away last year and he dealt with most of the major decissions. This being one of those. Please be patient with me.We are doing o.k. but are just trying to get our feet back under us.Thank you in advance.
We own about 40 acres in a section that has already been unitized.My huband had been in talks with people earlier last year,that represented a company that said they were interested in leasing our acreage. But those offers of late aren't anything like the ones that Gary and I had talked about.
I have looked at the forced pooling issue and read the discussions on here,more then once.I have also bungled my way through Sonrise and studied well info that just doesnt jive with the offers that are being thrown at me now.As I stated, we are doing o.k. But the future of my two kids could be adversely affected by me not making the right decission.I am not a numbers whiz but from every example that I have figured, I cant find any reason why my land isnt at least worth $30,000 an acre for a bonus. If I am not going to be paid that amount, why would I sign a lease?
We own about 40 acres in a section that has already been unitized.My huband had been in talks with people earlier last year,that represented a company that said they were interested in leasing our acreage. But those offers of late aren't anything like the ones that Gary and I had talked about.
I have looked at the forced pooling issue and read the discussions on here,more then once.I have also bungled my way through Sonrise and studied well info that just doesnt jive with the offers that are being thrown at me now.As I stated, we are doing o.k. But the future of my two kids could be adversely affected by me not making the right decission.I am not a numbers whiz but from every example that I have figured, I cant find any reason why my land isnt at least worth $30,000 an acre for a bonus. If I am not going to be paid that amount, why would I sign a lease?
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Replies to This Discussion
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Permalink Reply by The_Baron on -
By the way its permitted as a unit well, so you have been force pooled already.
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Permalink Reply by Joe T on
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If they haven't sent us a certified letter complying with the following, can they still force pool us?
(2) In the event pooling is required, the cost of development and operation of the pooled unit chargeable to the owners therein shall be determined and recovered as provided herein.
(a)(i) Any owner drilling or intending to drill a unit well, including a substitute unit well, on any drilling unit heretofore or hereafter created by the commissioner, may, by certified mail, return receipt requested, notify all other owners in the unit of the drilling or the intent to drill and give each owner an opportunity to elect to participate in the risk and expense of such well. Such notice shall contain:
(aa) An estimate of the cost of drilling, testing, completing, and equipping the unit well;
(bb) The proposed location of the unit well;
(cc) The proposed objective depth of the unit well; and
(dd) All logs, core analysis, production data, and well test data from the unit well which has not been made public.
(ii) Such election to participate must be exercised by mailing written notice thereof by certified mail, return receipt requested, to the owner drilling or intending to drill the unit well within thirty days after receipt of the initial notice. Failure to give timely written notice of the election to participate shall be deemed to be an election not to participate.
(iii) Another initial notice must be sent in order for the provisions of this Subsection to apply if the drilling of the proposed unit well is not commenced in accordance with the initial notice within ninety days after receipt of the initial notice.
The guy from Southern Star has been coming around talking leasing. When I asked him if we were already force pooled he said, "No"
I know they've set the field up for Force pooling but it seems to me that if they haven't sent us letters showing costs and giving us the option to opt in or out, I have to believe the guy when he says we aren't yet.
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Permalink Reply by The_Baron on
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You are unitized.
see attached field order. - Attachments:
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sentell.tif, 153 KB
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Permalink Reply by The_Baron on
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Also read what you posted...
a)(i) Any owner drilling or intending to drill a unit well, including a substitute unit well, on any drilling unit heretofore or hereafter created by the commissioner, may, by certified mail, return receipt requested, notify all other owners in the unit of the drilling or the intent to drill and give each owner an opportunity to elect to participate in the risk and expense of such well. Such notice shall contain:
It says they MAY. They do not have offer you a chance to participate. They could just let you go unleased. In this case you will receive your prorata share of production (if any) minus all drilling, completion, operating expenses and a supervision charge.
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Permalink Reply by Dion Warr, CPL on
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Joe T:
What Baron points out is important particularly to WI owners and O&G-type 'fee owners'. The operator MAY give notice; hoewever, if they choose not to, they MAY NOT collect a risk penalty from non-signatories to a JOA or other binding agreement regulating such terms.
As you would be a non-O&G individual, such a penalty cannot be charged against your interest.
If O&G elects not to inform you, even after you have informed them of your interest in their well or unit and have requested statements as to well costs and expenses, as well as proceeds from sales of product, you may be able to recover your share of revenues without having to offset your share of expenses. See KB's discussion as to this point in the code as well as cited court case elsewhere for details.
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Permalink Reply by Two Dogs, Pirate on
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It creates lots of problems in getting your money.
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