Replies to This Discussion

Permalink Reply by M. Mcwilliams on August 7, 2008 at 5:53

I have a question for the landmen. Are the companies actively seeking to lease up all the unleased acreage before drilling in this Haynesville play? Assume the situation where a small tract (less than 5 acres) remains unleased at the time drilling is set to commence. Will these companies be aggressively trying to lease these remaining tracts, or are they likely to just pass over them, leaving the mineral owner to deal with the effects? I'm not talking about a land/mineral owner who has explicitly refused to lease and wants to take the risk of going unleased, I'm referring to someone who, for whatever reason, got skipped over.

Anyone have an answer?

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Permalink Reply by M. Mcwilliams on August 7, 2008 at 6:38

But what's a typical strategy in obtaining that lease? Would the company be more likely to lowball the landowner, figuring that the landowner doesn't want to lose out on a bonus at that point, or offer the "going rate"?

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Permalink Reply by Eliza on August 9, 2008 at 1:59

It looks like I am in the same situation. There are several of us who own a percentage of acreage in several sections, but all of the large landowners in our sections were leased before the play was announced. One company is talking to us now but it isn't the same that leased the others. I think we would be better off leasing to the same company as the others but we've left messages and have not heard from anyone yet. The company paid very little for the other's land, will they try to do the same with us? Are we in a bad negotiating situation? Or in a good one? I want to do what it best for the most bonus money but also keeping in mind we want a well at the end of the day.

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Permalink Reply by Renee S Cd1 on August 7, 2008 at 9:09

Mr. McConnell, I don't think anyone would recommend her going unleased, but you make it sound like she would be forced to pay $50,000 out of her pocket. She may very well have legal expenses if she needs an attorney, but I thought RS 30:10 protects the unleased mineral owner from out of pocket O&G production costs. Royalties would be paid only after production costs were recouped by the O&G company IF certain conditions apply.

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Permalink Reply by Jaime T on August 7, 2008 at 15:50

I have no doubt that the oil companies will make it as unpleasant as possible for the non-consent owner, financially and otherwise. That is why if I do decide to go non-consent, I will mount a web-cam on my property pointed directly at the drill site and record all activity 24/7. They won't be able to pick their nose without me knowing what size bugger. I can play hardball too, and if they want to screw with me I will be their WORST nightmare.

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Permalink Reply by M. Mcwilliams on August 8, 2008 at 1:18

But you could go non-consent and be included in a unit without the company ever setting foot on your land. And a record of activity doesn't help at all with calculating what they owe after the sale of the gas.

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Permalink Reply by Julie on August 8, 2008 at 1:28

I am in T 17 N - R 13 W Section 14 (S. Bossier). The a handful of residents in the back of our neighborhood are in Sec 23 and were offered $20,000 per acre and 25% royalty by Petrohawk. The larger land owner to the south of them agreed to those terms so those residents had to be offered the same. Get as much acreage as you can with your neighbors and work together as a team! It is the ONLY way you will get any decent offer. Remember, this is supposedly the LARGEST shale in the WORLD, what is your land and quality of life worth? It is also helpful to know how many wells the company you are going to sign with is going to punch in with respect to royalties, the more wells the higher your royalty check.

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Permalink Reply by Renee S Cd1 on August 8, 2008 at 8:05

Largest in the U.S., 4th largest in the world, 5 times bigger than the Barnett Shale.

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