So much depends! Is there a well in the area producing? First a Unit (area of interest) is proposed which you would be informed about. Those who wish to drill have to follow the LA. laws and let landowners in the area know whats happening. Read and keep folders of all info for you records. It's a long process. If this is as big as projected, there might be a wanting list for drilling rigs...Hang in there! Good Luck to you and yours. B-)
I was told by the company I am dealing with, that it may
take up to 5 years before drilling is started in my area, which is N
Shreveport. Reason being, getting the land, all the permits, the rigs,
etc. Not sure if this is correct, but that is what he said.....
I appreciate all of the responses but with the results being published from other wells in the Haynesville shale couldn't someone give an estimate of what you would expect to received in monthly royalty checks per acre? I understand it depends on how many acres but there are calculations that you could do to say for every acre in a 640 acre tract you would receive X$ for a 25% royalty. Thanks.
Gatorguy, for a well producing 1 million cubic feet of gas per day (MMcfd) and a net gas price of $10 per thousand cubic feet (Mcf) the monthly royalty check would be about $117 per acre. The issue is how quickly a Haynesville Shale well will decline. For example a well that starts at 5 MMcfd will likely decline rapidly and stabilize at a rate less than 1 MMcfd after 1-2 years. Then it should decline very slowly for the next 10 - 20 years.
Robert, go to www.pagaslease.com, click on Resoures on the left side of the page and a Royalty Calculator will come up. You put in the numbers and it will automatically calculate the gross dollar amount the well will produce per day/month/year and your daily/monthly/annual royality.
Royalty payments come after the well(s) have been drilled, division orders have been signed and recorded, permits for the well issued, gas found and gas sold. I have read of people in TX, waiting a year for the first royalty check and then it is monthly or quarterly depending on their lease. LA does have a law that the o/g companies must send you a royalty payment when the amount they are holding for you reaches a minimum dollar amount which I think is $50 in any one quarter. This law keeps the o/g companies from holding your royalty, without interest also, for a year or more if you did not put in your lease when and how often you want your royalty payment. So, do not forget to include in your lease when and how often you want your royalty payment.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More