Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 29, 2013 at 10:52

JR, depends on where your mineral interest is located.  Which state?  Also if you would care to give more specifics as to location (parish/section-township-range or county/survey) and lessee/operator you may get some specific answers.

The term, "captured", is not normally used when discussing minerals.  I think what you may mean is "pooled".  Multiple mineral interests are pooled in a drilling and production unit and share in any production based on the terms of their lease and their proportional share of the acreage encompassed in the unit.  All those mineral interests that are leased receive royalty from a well or wells within a unit regardless of their surface location.  I suspect your minerals are in Texas as operators there regularly establish units which are later increased in size by including adjacent lands. If your minerals are indeed included in a producing unit then your lease is  most likely still in force and did not expire.

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Permalink Reply by JR in VA on June 29, 2013 at 12:18

Thanks for the info...the land is in East Texas  and you are right the acreage is being added to an existing, adjacent pool.  The original company used the term "captured" by the existing pool adjacent to us.

My main point of confusion is my status in the new pool.  Previous to my lease expiration, I had always been listed as unleased in the larger pool (even though I never declined an offer with respect to that land).   Now, I have been added to this larger pool.  I can't be leased and unleased at the same time.  I am confused about whether I have any rights to royalties from this larger pool that I am now a part of.

 

Thanks for any insight you can provide!

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Permalink Reply by Skip Peel - Mineral Consultant on June 29, 2013 at 12:48

JR, I suggest you join the group for the applicable E TX county and ask your questions there.  You'll find some knowledgeable members who can answer questions and if you provide the unit designation they might even have some detailed information.  When you post a discussion on a group page, as opposed to the Main Page, all the members of the group get an email alerting them to the new discussion.

You're confusing me with your question.  Were you or were you not part of the original unit?  Whether you were "listed" or not, if you had a legally executed lease which was in force at the time your minerals were added to the unit, you are leased and included in the unit as such.  If you lease expired prior to being included, that's a different story. 

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Permalink Reply by JR in VA on June 29, 2013 at 13:26

thanks  Skip -- I will do that in my local forum --

appreciate your input !

JR

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Permalink Reply by Andrew on June 29, 2013 at 15:48

JR,

Like Skip, I'm having a hard time determining exactly what your situation is without some more info. However, based on what you've said I would hazard a guess:

It's possible that a unit, which you used to be adjacent to and outside of, has been amended so that it now includes your acreage. If this is the case, you are still unleased unless you were added to the unit before your lease expired (in which case you should be receiving royalty).

The operator has the right to add your tract to the unit as long as it has leased any one of the mineral owners in that tract. So, if you don't own 100% of the minerals, and another owner leased to the operator, they can add your tract. If you own 100% of the minerals and you are unleased they cannot include you in the unit without your permission. In either case, if you were unleased when your tract was added then you remain unleased.

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