Replies to This Discussion

Permalink Reply by Hoosier Daddy on August 1, 2008 at 14:28

Just drop your unleased mineral acres into a single-member LLC. That should help with any liability concerns. (Of course, a judgment creditor could recover against those acres, but at least you've insulated your other assets.)

Permalink Reply by Riley Martin on August 1, 2008 at 16:57

Jim, this is great advice for those considering holding out.

Regarding your "half & half" suggestion, would it be feasible if all of my acres are in a single unit? In other words, would any oil & gas company agree to lease half my acres and let me leave the other half unleased? I would guess not.

Permalink Reply by BillieBob on August 5, 2008 at 7:29

So, are you saying if you're in a subdivision, it may not pay to lease except for opportunity to add clauses to lease that would benefit environment and neighborhoods as a whole?

Permalink Reply by Kassi on August 1, 2008 at 13:12

That is one of the reasons I say signing a responsible lease is the better choice for the typical land owner. BUT do not let land men scare you with being an unsigned lease holder. As the math shows..they would rather sign you even after the drilling starts.

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Permalink Reply by Two Dogs, Pirate on August 1, 2008 at 13:44

It is my understanding that if you ride the well down you become an unwanted working interest in the well. Once you take the money you agree to participate, I am told. Some people have a reason to not lease, enviornmentalists have their agenda, people on some sort of assited living from the stete or fed have a complete differen't view but they don't want to participate. The ones that don't take the money will not be penalized for the fish kill, I don't think. The companys will do whatever to get a lease for the right terms, they don't want anyone riding down.

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Permalink Reply by Bobi Carr ("parker") on August 1, 2008 at 13:49

Lots of foolish folks want 100% for 0% invested.

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Permalink Reply by Two Dogs, Pirate on August 1, 2008 at 14:04

It is my understanding that you would get seven eights after payout because the basic lease form has one eighth royalty built in, but I may be wrong. Some have chosen to alter the lease form, I do not change the boilerplate form I leave it at 1/8 on the form and change it to whatever on the Exibit "A".

Permalink Reply by Hoosier Daddy on August 1, 2008 at 14:21

I own 2.4 unleased acres in a prospective unit, and unless someone offers me a $30,000/30% lease like the Parishes are getting, I will be going unleased.

By the way, I did pay for my 2.4 acres with minerals, so I'm not 0% invested. And I don't think I'm foolish.

Permalink Reply by Les Bamburg on August 1, 2008 at 18:46

Thomas, read the regulations. There is no default lease provision for unsigned mineral owners. After payout the carried working interest owner receives revenue less expenses.

Permalink Reply by Bobi Carr ("parker") on August 1, 2008 at 14:11

My point is that a large amount of people want to get everything for nothing.

The mineral owner and the E & P have to work a deal that is equitable for everyone.

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Permalink Reply by Two Dogs, Pirate on August 1, 2008 at 14:22

You are right and they don't want to get screwed in the process. I can understand that everyone need to work together but this is an infant that may grow to be a giant.

Permalink Reply by Two Dogs, Pirate on August 1, 2008 at 14:52

My question is about the fish kill. Do you, Hoosier Daddy take blame for killing the fish, you were profiting from the deal.

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