landowner

$500.00 check from Audubon Oil & Gas for drilling on the section next to mine?

Jack's 20 acres of HS land is in a section corner. (section 21  T10N   R11W)

A man from Audobon Oil & Gas called Jack Blake today and wants to give Jack a check for $500.  He says it is because they (SWEPI) are drilling a well on the section next to me and the wellbore will go under our land at some point, but it will be perforated in the section next to me.

SWEPI already drilled a well in my section and the guy from Audubon said they got the bordering land owners to our section to sign these agreements for $500.00 each.  He says it doesn't matter how much land you have they pay only $500.00 for this.

He said they do this to get the maximum production from each unit.

He kept saying signing and accepting the $500.00 is the "neighborly" thing to do. 

Jack asked the guy if Jack would be offered more if he waited and the Audobon guy said if you don't sign, they just kind of redesign the well bore to not go under your land.

 

The guy wants to get Jack to sign within the next several days.

 

What should Jack do?

 

Thanks,

Jack Blake

 

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landownerPermalink Reply by RONNY on October 11, 2010 at 14:51
Jack Blake is the man who HOWLS for everyone to do well in the Haynesville Shale. We mostly like Jack and his colorful antics here on GHS. Tell Audobon you think the neighborly thing to do is add a zero to the $500. When I was 12 I had a friend who said his pet skunk had a "distended" anus. That's twice I've heard that word. Keep howling Jack!!!!!!!!!!!!!

landownerPermalink Reply by Jack Blake on October 11, 2010 at 16:52
Jack Blake appreciates the replies. Jack Blake talks in the third person because he was dropped on his head as a small boy and his brain was damaged some. Please don't be hating on the handicapped.
Thanks again for the replies...............Jack will do some more research based on some of the replies and let ya'll know how it turns out unless they offer me a whole bunch more and Jack has to sign a confidentiality clause. Jack is very leary of signing anything to be "neighborly". It helps SWEPI, but my neighbors get their royalties either way.
Jack has not seen the agreement they want him to sign yet, but he will get a copy of it soon.

Skip,
Who would you recommend as professional counsel or an O & G attorney who is an expert in well bore easements? You may be that expert Jack needs. Jack's O & G Attorney charges wayyyyy to much in 1/10 hr increments and it costs Jack about $100.00 just to exchange hello pleasantries with him and It would take him a half hour to tell me if he is an expert or not in well bore easements.
Thanks,
Jack Blake

landownerPermalink Reply by Sarah on October 11, 2010 at 19:39
"Jack Blake appreciates the replies. Jack Blake talks in the third person because he was dropped on his head as a small boy and his brain was damaged some. Please don't be hating on the handicapped."

I busted out laughing at this. Oh, you are so funny!

Ronny's right, we do like Jack Blake around here.

I hope you get the 10k Jack. Glad you're listening to Skip and Mac. And don't stop being your howling shreiking, boom shakalaka self!

landownerPermalink Reply by Henry on October 12, 2010 at 0:08
Jack,
As a free first step, why not call Audubon today and ask them for a map, showing exactly where the well site and well bore will be? That way, you will know exactly where they want to go, and whether or not they could go under someone else's land to achieve the same goal? They could email you the map quickly, and then you would know more.
Permalink Reply by Linda Whatley on October 12, 2010 at 2:18
Jack,

Sounds like Henry has the best way of approaching this issue. Meantime keep on howling........ this site would not be the same without you!

landownerPermalink Reply by Mac Davis on October 12, 2010 at 8:51
Mac thinks Henry's suggestion for Jack is good. However, Mac points out that once Jack signs the check, the operator is under no obligation to actually drill things like the map shows.

Mac would be shocked, shocked, to find out later that the operator deliberately prepared a map that wasn't what they really planned to do.


landownerPermalink Reply by Jack Blake on October 12, 2010 at 15:58
My friend Jack said that not SWEPI or any other operator would present a false map. When it comes to things like that all Operators have high integrity.
Now with that said, even dealing with these O & G companies of high integrity Jack thinks anytime an O & G offers you anything it is worth more than what they offered you.
jackblakehaspoken
Permalink Reply by Linda Whatley on October 12, 2010 at 16:26
It's only worth what you think it's worth if you can find someone to pay you what you think it's worth! ........

landownerPermalink Reply by Mac Davis on October 13, 2010 at 6:43
It's only worth what you think it's worth if you can find someone to pay you what you think it's worth! ........

I think that's wrong thinking for many O&G questions.

For instance, if I'm willing to pay Linda $1000 for the right to demolish her house, and no one is willing to pay more, that doesn't mean that Linda should sell me a "demolish Linda's house" contract for $1000. Linda's right to demolish (or not demolish) her house is probably worth a lot more to Linda than the "fair market" price.

If someone is willing to offer me $10,000 an acre for my mineral rights, and no one is willing to offer me more, that doesn't mean the right answer is to sell. It may make more sense for me to keep my rights and get my royalties.

Sometimes something is worth a lot more to keep for yourself rather than to sell or sign away.

landownerPermalink Reply by twomule on October 12, 2010 at 5:24
twomule apoligizes to Jack Blake. 2mule did not realize that Jack Blake was dropped on his head as a small boy, (wonders how far Jack bounced after intial impact) so 2mule now understands Jack Blake as the handicapped peep that Jack is. twomule laughed very hard when read Jack Blakes response, twomule thanks Jack Blake for the funny.....
(twomulewillnolongerspeakin3rdpersonafterthispostokay?)

landownerPermalink Reply by P.G. on October 12, 2010 at 5:51
I wonder what a new visitor would think if every post by all were in the third person?

Be kind of like stepping off into some kind of humorous Twilight Zone, huh?

All kidding aside, has anyone ever considered that Jack may not be typing but dictating to someone who is typing?
Permalink Reply by Linda Whatley on October 12, 2010 at 7:38
Good conclusion P.G.

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