Replies to This Discussion

Oil & Gas ProPermalink Reply by The_Baron on December 5, 2008 at 6:28

What is the unit size?

Also your interest may be diluted, but with the shale being spread relitivly evenly over a large area, you could have more wells per unit if the unit is larger. That might offset the drawback of having a smaller % of the unit.

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Permalink Reply by mary on December 5, 2008 at 6:54

True, your royalty might not be diluted if many wells are drilled in the unit, but there is no guarantee that this will happen and one well could hold a large unit indefinitely.

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Oil & Gas ProPermalink Reply by The_Baron on December 5, 2008 at 8:11

Still...How big is the unit?

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Permalink Reply by Gary on December 4, 2008 at 2:03

What is the issue with up front money when the issue of forced pooling is on the table? If a land-owner has not yet signed a contract with a stipulated rate of pay once the well produces and specific up front money, and is unleased at the time of the forced pooling, then what are the ramifications to that owner? Does the hearing set the amount and the terms? What is the purpose of the hearing when it comes to owner compensation?
Gary

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Permalink Reply by Gary on December 4, 2008 at 2:48

KB:

Thank you for this informaiton. This sounds like, however, the situation where an owner refuses to sign any lease. My understanding is that this then means that they are entitled to their share of profits, minus expenses, but Ihave heard that this frequently leads to either no payments or payments after a very long time. I am assuming from your response that even if force pooled, you are free to negotiate whatever lease you want to negotiate?
Thanks again.

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Oil & Gas ProPermalink Reply by The_Baron on December 4, 2008 at 5:15

I would start calling the competitors of the comapny forming the unit. You probally won't see prices like this summer, but you may get a good deal.

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landownerPermalink Reply by nisie, not a happy camper landowner on December 5, 2008 at 8:14

In your opinion then what would happen to section that only 40% were leased to CHK?

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Oil & Gas ProPermalink Reply by The_Baron on December 5, 2008 at 9:16

Is the rest of the setion unleased, or leased to third parties?

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Oil & Gas ProPermalink Reply by The_Baron on December 4, 2008 at 8:08

In fact a unit being formed and well on the way may make your tract more attractive to the operators competitors.

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landownerPermalink Reply by Bob Ballard on December 4, 2008 at 11:28

Yes Tommy there is a meeting. You can read the particulars at www.publicnoticeads.com/LA. Here are the answers to the questions posed. Natchitoches (PARISH), Natchitoches Times (PUBLICATION) 11/28/08 -11/28/08 (DATE RANGE) Cotton Valley Formation, Reservoir A (WITH THE EXACT PHRASE). There may be other things on a separate agenda, but I doubt it.
Bob

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