Replies to This Discussion

Permalink Reply by Snake Stewart on December 3, 2008 at 14:32

I would have to give you a location, for your charts and graphs to work, and that is top secret at this particular moment. I will give the Geo's a shot after I know if my hunch is correct or not.

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Permalink Reply by Bobi Carr ("parker") on December 3, 2008 at 14:51

Are you sure this isn't a trick question?

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Permalink Reply by Bobi Carr ("parker") on December 3, 2008 at 14:55

I would say you own them 10 years after the well was plugged and abandoned. Or 10 years after they have made any attempt to produce from a unit that the property is a part of.

But this is my opinion as a non-professional.

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Permalink Reply by Bobi Carr ("parker") on December 3, 2008 at 15:00

Snake,

Of course the owner that sold you the property may not have owned them and they were held by production from a well from the 40's. The reason you got a lease was because Twin Cities did the title work.

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Permalink Reply by Snake Stewart on December 3, 2008 at 15:14

That was a good one Parker. But lets say the title seems to be good and I am not HBP.Is there any scenario that would then keep me from owning 100% ?

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Permalink Reply by BirdDawg, plain ole' idiot on December 3, 2008 at 15:12

Snake,
You say the well was drilled as soon as the propery was purchased. And then plugged and abandoned. And then 5 and 1/2 years pass and no royalty is paid. In my humble opinion, there are still 4 and 1/2 years before 100% of the royalty go to the present surface owner. I realize I could be wrong. Let me know. Don't really understand, you state that after 5 and 1/2 years pass by, you have owned the property for 10 years. This is the part that confuses me. If it had been 10 years after the plugging of the well, then I would say you would own 100% of the minerals.

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Permalink Reply by Bobi Carr ("parker") on December 3, 2008 at 15:20

BirdDawg,

That too is my opinion. (unless they went back in at any time and did any fiddlin' thethe minerals - in that case it would be 10 years after the fiddlin'.

How's fiddlin' for professional terminology,

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Permalink Reply by Snake Stewart on December 3, 2008 at 15:31

I guess I was trying to state that two totally separate leases have transpired. The 5 1/2 years was total time after sale. Entering current 3/2 lease that is fixing to expire. Putting total time of ownership over the 10 year mark. If no royalty was ever paid , does fiddlin' count ?

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Permalink Reply by Snake Stewart on December 3, 2008 at 15:33

I guess fiddlin could count depending on the wording of the lease document for lease purposes but not for ownership, would it ? 10 years would be 10 years for percentage purposes wouldnt it , even if I can be held on the lease .

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Permalink Reply by Bobi Carr ("parker") on December 3, 2008 at 15:42

It is my understanding that any work on a well that is an attempt to produce will interupt the running of prescription and start the 10 years all over again.

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Permalink Reply by The_Baron on December 3, 2008 at 15:49

The issue is not Royaltys being paid.

A bona fide attempt to find minerals must be done. a dry hole counts, and would interupt prescription (another 10 years)

And parker, I do not believe an attempt to rework an old non producing well would count, unless the well was deepend.

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Permalink Reply by The_Baron on December 3, 2008 at 15:51

Also, if you owned the minerals, and they are set to expire in one year, Any lease you sign would be valid only for the time you own the minerals. Unless a well is drilled in the time you still own the minerals, the extra time on the lease is worthless. You can't lease what you don't own.

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