Replies to This Discussion

Permalink Reply by John M Santamaria on March 27, 2019 at 4:48

Wow, unexpected reply Skip.  It was announced in our sales meeting that Ford is developing an all electric pickup that will be available in the near future.  Once again I think that there other variables that are "swept under the rug" concerning electric vehicles.  Used up lithium ion battery disposal could be an ecological problem and especially when the amounts become large.  China using coal to generate electricity negates the pollution saving advantages.  It seems they are waking up to the advantages of natural gas if the tariff nonsense doesn't screw that up too like soybeans which caused a substantial hit on our crop and we were lucky it wasn't worse than that like others.  I always tell people we were supposed to be using flying cars in the 70's.

    More importantly I was hoping to hear about the permit re-issue for Avoyelles if you had any info.  Looks like there has been some positive press about the price of oil  which can only help prospects for our Austin Chalk.

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2019 at 4:58

John, you may be relieved to hear that when the lithium-ion batteries are no longer capable of functioning for EVs, they are retrofitted for use as home storage batteries.  Ford is not the only manufacturer going electric, they all are.  Some European countries will no longer allow sales of ICE vehicles after 2022.  And that's all vehicles not just passenger cars.  I sat in traffic in downtown Shreveport a few days ago behind a big beautiful Mercedes van, it was electric.  I was passed by a city bus - cng.  I pulled up at my destination and the UPS truck in front of me was cng.  The switch away from ICE is happening now.  And the pace is accelerating.

I'm headed out the door.  Remind me later and I will look at the permit.

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Permalink Reply by John M Santamaria on March 27, 2019 at 5:03

Okay thanks.  I just think CNG is a great solution for the immediate future.  What are they using instead? Did you know that the lithium-ion battery was invented by a fellow Longhorn?

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2019 at 6:33

CNG is quite good where supply is cheap but only for "route" vehicles.  The UPS truck being a good example but also city buses and garbage trucks.  The limiting factor for CNG is two fold:  it must be stored in a cylinder owing to the pressure required.  It takes up too much room in a car trunk and a good bit of a pick up bed.  The other challenge is fueling infrastructure.  If a vehicle does not return to a central facility each day it is impractical to set up CNG for long haul purposes.  Electric is available everywhere there is an existing gas/diesel fueling facility.  Adding chargers is much simpler and cost effective.  Also, because charging an EV takes a little more time than filling a tank with gas, retailers like it very much.  People stop and eat.  They shop.  Think Buc-ee's.

Buc-ee's

Convenience store company

Permalink Reply by Morgan Dill on January 28, 2021 at 5:41

Hello, my name is Morgan Dill. I own acres in the haysville shale desoto parish louisiana section 22 13n 12w. I am not leased, Vine has a producing well in this section and sent me a letter saying I was forced pooled into a working partner without my knowledge. I need any advice on what I should do. Thank you. Email is mwdill7422@gmail.com

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Permalink Reply by Skip Peel - Mineral Consultant on January 28, 2021 at 5:57

Shame on Vine.  If you own minerals not covered by a lease, you are not a Working Interest (partner), WI.  You are a UMI, Unleased Mineral Interest.  The difference is substantial under Louisiana law.  Only Lessees, individuals or incorporated entities who hold leases from mineral owners would be WIs.  The WI must pay its proportional share of well costs and, going forward, Lease Operating Expenses (LOE).  If a WI chooses not to pay, they are considered "non-consent" and will suffer a 200% Risk Penalty.  That means the well must recover twice the cost to drill and complete before a WI would receive any income.  They would still have LOE deducted from their proportional share of production.  A unit operator must pay the WI the amount that would be owed to royalty owners (Lessors) under the WI's leases and the WI must pass that along to the royalty owners are get sued.  Legislation covering this requirement was passed in the last few years.

I suggest that you send a letter, certified/return receipt, to Vine stating that you are a UMI and not a WI, if indeed that is the case and see what they say.  You should also include a demand for quarterly reports on the producing well so you can see when/if it will payout (recover the cost to drill and complete).  This is also required by Louisiana law.  Once a well or wells in which the UMI holds a mineral interest payout, they are due payment on their share of production (100% of their unit acreage) subject only to LOE.

Disclaimer: IANAL.  That means, I Am Not A Lawyer.  If you need one, I can refer you.

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