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Permalink Reply by Linda Whatley on November 13, 2010 at 12:15

Hey A. Waites,

I'm not an expert, so sorry, I can't help you out. Maybe someone "who's in the know" will see your post and give you some advice soon. But, since you are unleased, there is something I'd like to know - how long has it been since the well went into production?

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Permalink Reply by A. Waites on November 14, 2010 at 9:59

It said on Sonris it was finished July 2010 but as for production i am not sure. We had noticed the pipe lines being laid months ago. Then we received the Divisinon order.
Our well is end of Kingston Rd. I think they are now drilling a fourth one..

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Permalink Reply by FXEF on November 14, 2010 at 15:36

If you are unleased you need to carefully read Louisiana Code RS 30:103.1. I don't know, but most likely your well is far from being paid out.

§103.1. Operators and producers to report to owners of unleased oil and gas interests

A. Whenever there is included within a drilling unit, as authorized by the commissioner of conservation, lands producing oil or gas, or both, upon which the operator or producer has no valid oil, gas, or mineral lease, said operator or producer shall issue the following reports to the owners of said interests by a sworn, detailed, itemized statement:

(1) Within ninety calendar days from completion of the well, an initial report which shall contain the costs of drilling, completing, and equipping the unit well.

(2) After establishment of production from the unit well, quarterly reports which shall contain the following:

(a) The total amount of oil, gas, or other hydrocarbons produced from the lands during the previous quarter.

(b) The price received from any purchaser of unit production.

(c) Quarterly operating costs and expenses.

(d) Any additional funds expended to enhance or restore the production of the unit well.

B. No operator or producer shall be required under the provisions of this Section to report any information which is not known by such operator or producer at the time of a report. However, the operator or producer shall report the required information to the owner of the unleased interest within thirty days after such information is obtained by the operator or producer, or in the next quarterly report, whichever due date is later.

C. Reports shall be sent by certified mail to each owner of an unleased oil or gas interest who has requested such reports in writing, by certified mail addressed to the operator or producer. The written request shall contain the unleased interest owner's name and address. Initial reports shall be sent no later than ninety calendar days after the completion of the well. The operator or producer shall begin sending quarterly reports within ninety calendar days after receiving the written request, whichever is later, and shall continue sending quarterly reports until cessation of production.

D. Notwithstanding any other provision of this Section to the contrary, at the time a report is due pursuant to this Section, if the share of the total costs of drilling, completing, and equipping the unit well and all other unit costs allocable to an owner of an unleased interest is less than one thousand dollars, no report shall be required. However, during January of the next calendar year, the operator or producer shall report such costs to the owner.

Added by Acts 1950, No. 387, §1; Acts 2001, No. 973, §1.

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Permalink Reply by Bandit, UMO on November 14, 2010 at 15:43

I'm confused. Is the operator/producer required to send these reports automatically, or are the reports sent only if the unleased mineral owner requests them? Thanks.

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Permalink Reply by FXEF on November 14, 2010 at 15:56

Bandit,

Read section "C" of RS 30:103.1. It states it must be requested.

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Permalink Reply by Bandit, UMO on November 14, 2010 at 17:07

Gotcha! Part A said they "shall issue" the reports and Part C said the reports had to be requested. That's what confused me. Thanks for clarifying.

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Permalink Reply by Two Dogs, Pirate on November 13, 2010 at 14:53

GD, think that I got crossways with Mr. Aubrey Sanders and Aubrey McLendon a while back by using only the name Aubrey.

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Permalink Reply by OLYMAN on November 14, 2010 at 15:27

there is some real good information on this subject in unleased minerale owners group under the thread la. division orders vs chesapeaks documents by Dr wavesport

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