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Permalink Reply by Teri Graves on February 19, 2013 at 4:47

Thank you for your input. I have read "umo basics" at least three times now. I still need clarity on it. I understand the operators of the well are to report within 90 days from completion of the well to the owners of unleased interest.  But that's only if they are in receipt of written notice by certified mail from owners making them aware of your mineral rights and interest of the land description ect. I just sent that letter.   I'm wondering since the completion of the well was 10-16-09, they should send the reports in 30 days.  Does that sound right?

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Permalink Reply by Greedy Landowner on February 19, 2013 at 5:04

I dont know the answer to that one.

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Permalink Reply by HBP on February 19, 2013 at 7:16

In my experience they will get you (some) reports within 30 days if the well has been online that long.  Maybe not everytime, but that is my experience most of the time.

Note on 30:103.1 that these are reports provided by the operator, generated by the operator.  There is language in the statute to the effect that: they don't have to report what they don't know yet.  I have seen a HA operator claim that that they were not late on a UMI requested report because they did not have all the information ready yet.  As with most issues, until it is litigated or the statute is amended, it can be read subjectively.

Also note that since your interest is smaller (I think you said 3ac or so), then some of the later reports after the well has been online may have your share fall below a certain minimum to provide these, I think they have to provide them yearly at that point.

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Permalink Reply by Teri Graves on February 19, 2013 at 10:58

Thank you for that information.  Makes sense..

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Permalink Reply by Andrew on February 20, 2013 at 9:32

HBP, are you sure you aren't thinking of the obligation to pay royalty below minimum amounts rather than reporting info? I'm not aware of any mimimum regarding the latter.

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Permalink Reply by HBP on February 20, 2013 at 11:37

La Rev. Stat 30:103.1 (D).  For proportionate share under $1000. 

If I misinterpreted it, let me know. 

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Permalink Reply by Andrew on February 20, 2013 at 14:51

Right you are, I wasn't aware of that provision. However, 1 acre's worth of drilling costs on an $8 million well would still be $12,500 so 3 acres in a Haynesville well should fall comfortably over that minimum.

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Permalink Reply by HBP on February 20, 2013 at 15:15

correct.  it was just a note re: some of the later reports that trend lower, since this well has been online since 09.  If the reports stop coming a UMI may want to check where they are on amounts.

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Permalink Reply by Teri Graves on February 21, 2013 at 7:10

I will keep checking! Thank you!

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Permalink Reply by Teri Graves on February 21, 2013 at 7:06

Wow, that's exciting!!

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