I recently received division orders from Covey Park regarding a tract in DeSoto Parish. The only cover letter is an instruction form on how to complete the form. I never received any contact from a landman or from the company. I have no idea what this relates to and/or how they arrived at the decimal interest. I have agreed to nothing. Also, the unit is located in a different section. Before I call the company or contact a lawyer, can anyone provide a little insight to this? Thanks.
In LA, you should never sign a Division Order. You do have to provide your social security number for tax purposes. The DO will reference a well. What is the well name?
Wilson 7-6 HC 1 ALT is designated in the DO.
I have mineral deeds in HA RB SU67.
I received a legal notice re: Cook 6H No. 1 ALT, but nothing for Wilson.
I realize I have a total of about 14 acres re: mineral rights, but shouldn't I have some rights to negotiate royalties and use of what I own?
Where did you get the minerals?
They were deeded to me when I purchased the properties in 1995 and 2010. They had old leases with El Paso from the 1950s (I think), but nothing with the new Haynesville.
Your mineral interest is in Section 6 (HA RB SU67). How did you acquire those rights and when? Might they have already been under lease? Division Orders are sent to royalty interests so I suspect that the minerals you acquired were already burdened by a lease. If you are an un-leased mineral owner, we call you a UMI (unleased mineral interest) and there is a GHS blog about your rights. If that is the case, I'll post a link.
You will be owed production payments under Louisiana law for both the Cook 6H and the Wilson 7-6 HC 1-Alt and 2-Alt (there are two). In addition you would be owed production payments for the original unit well in Section 6 although I do not find one in the database. It is possible that one of the wells drilled in 7&6 has been designated the unit well. This will be made more clear when Covey Park starts reporting production and the LUW Code number will be available in the database.
One parcel of land (3 acres) I have owned since 1995. The original owner transferred the mineral deed with the land. The original owner did have a lease with El Paso out of Houston. This did not have anything to do with Haynesville Shale.
The other parcel of land (10 acres) I have owned since 2010. I received the mineral rights for it as well in the transfer. It too was leased with El Paso from decades ago.
To date, except for the DOs, all I have received are the legal notices regarding potential Haynesville well sites for drilling (by Covey Park) below my section. No one has contacted me regarding leases or royalties.
The old leases from the 1950s (I think) for drilling around 1000 feet, have nothing to do with the Haynesville directional production, correct?
The majority of O&G leases are "all depths" and most older leases did not contain a vertical Pugh clause that would release depths below the deepest production. There is HOSSTON production in Section 6 going back to 1994 (HOSS RA SUDD) and COTTON VALLEY production going back to 2008 (CV RA SUV). I suspect that the lease under which the Hosston well was drilled burdens the minerals you acquired. It would take a little work to confirm that but you can always contact Covey Park and ask. Or, if the sellers of your minerals are still around, they might recall.