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Permalink Reply by Mac Davis on August 6, 2010 at 16:31

Welcome on board Ed. I'm guessing you're in Texas.

If the well is already producing, the lease will probably remain in effect as long as they are producing and there will never be another signing bonus. There may have been a "signing bonus" when the rights were first leased.

Your "decimal" depends on what percent of the land you own in the area "drained" by the well or the size of the unit the well is in, what percent royalty is in your lease, and what percent of the mineral rights you own.

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Permalink Reply by keb on August 6, 2010 at 18:16

"Gosh", Gosh Darn, I am always impressed with your opinions! I love reading your comments, they are so informative and I always learn something new. thanks, by the way, I copied the sample lease on the site, is it ok to take this to a lawyer and tell them to use it and add to our lease (when we get one)? keep up the good work.

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Permalink Reply by MARG on August 7, 2010 at 5:36

These leases are from the " olden days" and it is HBP. The decimal interests are different as things have been "farmed out", etc.through the years. The Classic Co. has the decimal interests correct in the well. I have knowledge of the well, why it was drilled, etc. from the beginning, and I certainly hope that someone does not try to create problems. If they knew what I know, they would be very grateful for getting into the well. I am going to attempt to locate a telephone number to communicate with Edward. Classic has been good to our area as they have been cooperative, worked to help the old leased ones, etc. I hope they remain in the area. I would like for us to get more wells in the unit.

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Permalink Reply by MARG on August 8, 2010 at 9:02

Edward, the decimal interest varies according to the TAW (total acreage in the well) and the amount of yours that is placed in the well. I do not believe that there will ever be (in our lifetime) any bonus money in that as long as one receives a check for production, it is HBP (held by production), and after all , the basic money is money in the ground. Usually, a well will be reworked or a new one drilled, etc. so checks usually continue. When one well is depleted, they can move on and drill again maybe even on another's land who is in the unit. Now, if a ruling would happen pertaining to the deep rights and the shale, then bonus money could come, but I do NOT THINK that would happen, and the old leases were leased without limits which means that they leased ALL Depths. Those reports and talk of lease bonus is not true. I have copies of many old leases and the old division orders had names and addresses of everyone in the wells. I have interests in this area, and I am very knowledgeable of this unit. The well is supposed to be a good one , and the landman was very interested in the project. I visited the drilling site, and the location is in a beautiful place; however, it is fenced and locked now. I could not locate a telehone number for Edward Daniel so I hope he reads this.

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Permalink Reply by Ed on August 8, 2010 at 20:43

Thanks for the call. Ed will call you soon, add yes, he remembers you...Beth

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