landowner

Cost to drill

Quick question Lady’s and Gentlemen,

 

If I’m approached by a landman and we do not reach an agreement…either I do not sign his lease or he/she rejects my counter. Either way no agreement is reached or signed off on.

 

The drilling company proceeds to drill with no signed agreement from me, and the well does not produce and they plug the thing.

 

Will I then be responsible for my percentage of the cost to drill? I do understand I will be responsible for my percentage of cost if the well does come in.

 

Thanks,

 

Chuck

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landownerPermalink Reply by Mac Davis on February 2, 2011 at 12:46

Are you in Louisiana?  If so, 

 

You are not responsible for the cost of a dry well.  If the well produces, the cost of the well is deducted before you get any payments for minerals. 

 

Some people will lie and tell you they will deduct 200% or more of the cost of the well before paying you.  This does not apply to people who simply did not sign a lease.  It applies to people who made other kinds of agreements.

 

Lots of people believe that the driller will cheat you on costs if you are unleased.  This is probably true to some extent.  However, lots of people believe they'll cheat you if you ARE leased.

 

I can't tell you for sure about the rules in other states.


landownerPermalink Reply by Herman (Chuck) Plonnigs, III on February 2, 2011 at 14:00

Mac Davis...Huuuuuuuugh,

 

I simply have issues signing a 4/3 lease!!

 

Thanks so much for your response...I do live in Louisiana...my land is in Union Parish.

 

Many Thanks again!!!

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