Replies to This Discussion

landownerPermalink Reply by Checkmateking on September 1, 2009 at 10:59

Are you in the unit?

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landownerPermalink Reply by Bobi Carr ("parker") on September 1, 2009 at 12:04

dkerby,

The landman will need to verify title before they will be able to give you answers.

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landownerPermalink Reply by Checkmateking on September 1, 2009 at 12:11

hey Parker, how are you ?

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Oil & Gas ProPermalink Reply by Dion Warr, CPL on September 1, 2009 at 12:49

Yeah, I'll second CMK: How have you been?

Cute puppy, btw...

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landownerPermalink Reply by Bobi Carr ("parker") on September 1, 2009 at 18:03

Hey guys,

Doing great, just waiting for NG prices to increase to make things even better.

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landownerPermalink Reply by dkerby on September 2, 2009 at 14:21

hello parker, that step was done. It really took a quite while and is actually the reason I did not sign a lease.

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Oil & Gas ProPermalink Reply by Dion Warr, CPL on September 1, 2009 at 13:38

Dkerby:

I'm sorry, I failed to respond to you. Thought I had posted before.

A question: did you not lease because (1) no one found you, or (2) did you receive an offer and (a) not respond or (b) refuse the terms?

Assuming that the lessee/operator never knew you existed as who you are, or could have found you at your current out-of-state address... I would suggest the following:

Verify that your property is "in the unit"; let's do that together. Your property is located in...? (Section, Township, Range)

Once we know what unit you're in, there are a couple of ways to handle this.

You can always inform CHK that you are , aka , and that you are an unleased mineral owner in S-T-R, which is part of the Xyz #1 Unit (HA R-something SU-something else), that your current address is address>>, and that you are aware of their recent completion of the well, and would like to be added to their list of unleased mineral interest owners. They will probably direct you to submit some sort of curative document (which the royalty information / landowner contact people probably will not be able to tell you what it is), but at least find out where such instruments should be sent.
Also, you should also inquire as to what lead broker is working working that area as far as abstracting the property. Chances are if you did not receive any notices, you're not listed on their interested parties lists, either because (1) your name changed, (2) the landmen could not find current address information for you, and/or (3) they are not far enough along in the abstract / DOI process to have been searching for up to date info for you. Finding the field broker doing the abstract work in the area (chances are, if they're not paying royalties yet, this group is still working) may shorten the process by a significant amount.

The other route is to get all of your ducks in a row, find out all the information that you can about where your property lies within the broad scheme of things, and get proactive (file an affidavit of identity, and/or a declaration of interest in the unit) to put the company and/or their abstractors and title attorneys on notice that you are out there, that you exist, and that you are now known as who you are now, and that you own a certain tract of land (in somebody's unit, we hope). Then submit the curative instruments along with a letter to CHK saying that you are who you are, and you own what you own, and enclosed please find this instrument recorded in the Parish Courthouse evidencing same, and that you expect to be informed as to the progress, production, and operational activities in such and such unit. Follow up with a phone call.

If you don't like (or don't want to pay lawyers), suggest finding a landman. They're usually cheaper, and will be able to speak 'landman' to the company people to find the shortest route to what they need to get you (the landowner) into the loop. There are a few around here (this poster included, not that I'm soliciting), including... Skip Peel, Independent Landman (and formerly identified Site Sponsor).

Good luck to you, and please post any followup questions that you may have.

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landownerPermalink Reply by Bobi Carr ("parker") on September 1, 2009 at 18:12

Dion,

I figured that since dkerby has spoken to the landman (who can't give any difinitive answers), that he is now in the loop. They now know that he exists and are trying to find out "if" he owns the minerals.

I've never heard of a "declaration of interest in the unit". Whould this just be an affidavit stating, I
"----" hereby declare that I own "---" in Section --, Township --, Range --, and then identify the unit information as well, or should it contain some additional information?

Do you recommend that he send a copy of the recorded affidavit to Chesapeake?

THANKS

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Oil & Gas ProPermalink Reply by Dion Warr, CPL on September 2, 2009 at 17:13

Parker:

Name changes are usually handled by an Affidavit of Identity. In that affidavit, the party would state their current name, any other current of former identity (aka, or fka), their address (a partially redacted SSN is also a good idea, e.g., xxx-xx-1234), and any prior address that would be beneficial so as to show a trail from the former identity to the current one.

A Declaration of Interest would be a separate document, which would list the name of the party, current address, (partially redacted SSN), the property owned by the party along with their ownership (include how much and what type, e.g., 'an undivided one-half interest in and to... being unleased...', its acreage, and its location within a unit or units. If a unit survey has not been placed of record or submitted to LOC, one would only be able to list the unit (presuming the area has been formerly unitized). If the unit has been surveyed, identify the property in the survey (as a unit tract number), and calculate the interest, like this...

"being the owner of the following tract of land located in X Parish and described as follows, to wit:

[Description Here]

Being the same tract of land identified as Tract 15 on that certain designated Unit Plat or Survey commissioned by dated xx/yy/aaaa... in compliance with a Field Order issued by the Office of Conservation, State of Louisiana,... being more particular referenced hereinbelow...

(Owner or Affiant) herein declares that (he/she/it) owns a 0.01000000 net unleased mineral interest (being calculated as 100% x (6.4 / 640) x 8/8) in the HA RA SUA, Xyz No. 1 (SN 321654), Elm Grove FIeld, as established by the Commissioner of Conservation, Department of Natural Resources, State of Louisiana under Order No. 361-L-xx, effective 9/2/2009, and is entitled to its said proportionate share of production attributable to said unit..."

Hopefully, you get the idea. There are some words of art involved, and you should have enough information (applicable field orders, a good property description, copies of the unit plat if available, etc.) to identify the interest clearly and in good form, which is why these are usually completed by landmen and attorneys in the employ of a landowner, rather than the landowner himself. Since attorneys admitted to the bar in the state of Louisiana in current good standing can also act as notary, in many cases the attorney researches and prepares the documents, and simply has the landowner sign and date. The attorney then has the document(s) filed of record, and sends certified copies out to the appropriate parties with a cover letter.

Some large landowners will file such declarations in lieu of signing a division order or letter, presumably so as to not materially change any prior agreement between the parties, nor restrict their rights by any possible clauses which may be part of the division order document. This is usually not as much of an issue to relatively unsophisticated lessors and UMI in LA, which gives the benefit of the doubt to the unsophisiticated party anyway, and the contractual woes and complications arising from the execution of a division order (or lack thereof) as well as attempts by lessees/operators to manipulate unsuspecting landowners with DO's with onerous terms have largely been eliminated with the passing of Article 138.1 of the Mineral Code.

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landownerPermalink Reply by Bobi Carr ("parker") on September 2, 2009 at 4:51

dkerby,

Are you still asking $20,000 per acre bonus?

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landownerPermalink Reply by dkerby on September 2, 2009 at 14:27

My sister recvd around that amt. Not sure what you mean there.

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landownerPermalink Reply by dkerby on September 2, 2009 at 14:51

thx caliente i'll peek at that

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