Replies to This Discussion

Permalink Reply by DYST_JP on August 10, 2008 at 7:16

Hunter, I would suggest to do as much research as you can. To be an interest owner has benefits like the opportunity to receive more money than you would if you were receiving a 25% royality, but you have to share in the cost of the well. In other words the oil company can nickel and dime you to death on cost to where it will be a long period of time before you may receive any payment. The more land you own the more interest you have in the well. If you have 4 acres that would equate to about .625% interest. Less than one percent. While it can be a good bargaining chip when dealing with a landman to get what you need on your lease it can also put you at finacial risk. You can be held liable if something happens. Someone get hurt while drilling or even environmental damage. I am also considering the same for the land around my house. But I do not have all my eggs in one basket. I have other property that is already lease that I have an opportunity to recieve royalties on. So do your homework to make a good decision. From what I have been told you have until the well is completed to sign your lease. At that point in time you will be sent paper work to sign designating yourself as a interest owner or non consent. keep a close eye on your section getting unitized. You should receive a letter about a hearing with the Department of Natural Resources office of Conservation. Then the company will have to get a permit to drill. It is not unusual for a location to be be built but it still take a while to get all of the proper paper work done. There is a ton of good information on this site that can help you with your decision, plus a whole lot of people who know a great deal more than I do. Don't be afraid to ask. I hope this helps and I hope the well is a gusher. That will make me more hopeful that they will drill about a mile south on my families land.

• ▶ Reply

Permalink Reply by lanadan Ds3 on August 10, 2008 at 10:38

Black Stone Minerals is a company that buys minerals outright. When I went to their web site (wwwblackstoneminerals.com), I could not believe how many of the minerals they own in our area (I'm in the Stanley area). Evidently, they lease to the big boys like Chesapeake. We will never know the terms that they are able to negotiate. It seems that International Paper has sold off a lot of its mineral rights in times past. But I believe that some of our locals may have sold their minerals a while back, thinking that they made a good deal at the time. I anyone wants to see the properties where Blackstone owns the minerals go to web site and click on property maps.

• ▶ Reply

Permalink Reply by shelby on August 10, 2008 at 12:03

Lanadan,
Thanks for the discovery and info on Black Stone. I looked at their web-site, and it looks like they have about half the section controlled in my area. I know CRK has a couple of good tracts also. Very interesting situation.

Permalink Reply by DYST_JP on August 11, 2008 at 8:21

Hunter Hillbilly, do not know if you have received a notice about your section being unitized but got mine today. If you need more information or if you have not received one let me know and I will try to get you a copy or law firms phone # where you can call them.

• ▶ Reply

Permalink Reply by thunder on August 11, 2008 at 8:55

Hi
I am also in this section and we received our notice today. What does this mean? I have received an offer from JW porter but it wasn't near what some around us got.

• ▶ Reply

Permalink Reply by DYST_JP on August 11, 2008 at 10:44

First of all someone may can explain this a whole lot better than me and hopefully someone can if I screw this up. From my limited knowledge this is an inital application to the Louisiana Office of Conservation for a hearing to create a unit. That being a "production unit" where a well will be drilled. Usually a 640 acre section of land. Now this does not have to consist of 640 acres it can be more or less. I have heard of units being 180 acres and there are some just south of you in T10N R14W that are 1280 acre units. The O&G company must have a certain amount of land leased in this unit and I believe the amount is 80% of the unit must be leased. It can designate a production company. They must prove to the office of conservation that they are not going to put a well to close to the edge of a unit or to close to an existing well. It can and will create forced pooling of all land in the section for those land owners who have not leased. Now DO NOT PANIC you still have until the well is completed to sign a lease. There can be advantages to signing a lease or going without signing. I suggest you research each option that may be best for you. There are several blogs about forced pooling, non consent and owner interest on this site that will give you alot of information. You will have to research and decide for your self which option is best. JUST REMEMBER this is one of the times that excessive bullyging tactics are normal used by landmen. I suggest to know your rights and decide what is best for you. My suggestion is let Wit know that you want market value for your lease and you will not take a penny less. Their inial offer is always low. Let him know that you want to be fair to the oil company but you want to be treated fair as well. Let him know that you understand that this area is getting alot of attention and you feel market value is only appropriate.

• ▶ Reply

Permalink Reply by DYST_JP on August 11, 2008 at 10:52

One more thing that lets me know that this area is getting hot. My family received an offer to purchase 1/2 of 3/16 interest in an existing lease in Section 31 just south of you. Their offer on my dads part was 100K for above interest in about 50 acres. Told them they were crazy.

• ▶ Reply

Permalink Reply by Hunter Hillbilly DS3 on August 11, 2008 at 15:22

Hey thanks for all the info.
It looks like we will need to do some research on all this.
You are right, all we want is the same amount that they gave our neighbor who is 1/2 mile up the road.
We will just wait & see what happens, we are in no hurry.

• ▶ Reply

Permalink Reply by DYST_JP on August 11, 2008 at 10:58

This is in sec 30 T11N R14w near the Hunter community. Between Stanley and Converse on HWY 191

• ▶ Reply

Permalink Reply by thunder on August 11, 2008 at 14:25

We told him what we would take but haven't heard back from them. It really doesn't matter to me if we lease or not. I guess as I learn more I might be able to make a better decision.

Does it look like two different locations on the paper work you received in the mail?

• ▶ Reply

Permalink Reply by DYST_JP on August 12, 2008 at 0:36

I am not sure, but it appears that they are giving a general range for the possible well. Hunter Hillybilly has stated that there is a recent well location that has been built. From his description of where the location is, I bet falls within the outlined boundary for a possible well.

• ▶ Reply

Permalink Reply by Hunter Hillbilly DS3 on August 12, 2008 at 15:21

We think it is 2 locations for 2 different wells side by side in 2 different sections.
One is going to be in section 30 & the other is going to be in section 19. That is what it looks like to us.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page