Leased verses Unleased

Located in Southern California and have land in Desoto Parish. Chesapeak is repeatedly contacting us wanting to lease the land, we have heard of more royalties for unleased land. We are not there to keep an eye on things and feel left out. What are the pro's and con's any suggestions? We are in S35-T14N-R15W area.

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landownerPermalink Reply by RAY on May 7, 2009 at 10:12
the only real bad thing I keep hearing is; [dont know how true it is]

the O&G companies can bury the unleased l/o with mountains of fees and they may never see a royalty check

but with the low end bonuses they are offering right now, I plan to stay unleased.

Oil & Gas ProPermalink Reply by Babs Lloyd on May 7, 2009 at 12:04
If you do not lease, you have a participation in the cost of drilling the well. You will get 100% royalty once the well has paid out. At the cost of $6m-$10m to drill a Haynesville well, it will take A LONG TIME for you to get your 1st royalty check. If it is a dry hole you will get no bonus and no royalty.
If you sign your lease you could expect 25% royalty and there will be no expenses to you. Not sure what the bonuses are going for now. The days of $20k bonuses are gone.

landownerPermalink Reply by Cathaus on May 8, 2009 at 4:41
There you go again Blabs with the doom and gloom. When will you realize that shtick doesn't work anymore?

landownerPermalink Reply by Cathaus on May 8, 2009 at 5:55
Go get 'er Jim! Blabs needs remedial landman 101!

Oil & Gas ProPermalink Reply by Babs Lloyd on May 9, 2009 at 13:47
Didn't mean to make you MAD.
What happens to the UMI when a company drills a well and caps it waiting for price of gas to go up?
Permalink Reply by BirdDawg, plain ole' idiot on May 9, 2009 at 15:21
Babs, Babs, Babs,
Before you go to beating your gums on here, you at least need to learn the correct terminology, and the facts of well procuction and well payout.

I reckon you have the right to state your opinion, regardless of how stupid or irrelevant or incorrect, but personally I would appreciate it if you would take a hike.
As in, somewhere else.

In the famous words of Shale Geo when talking to someone like you : "the sky is falling".
Or at least according to you.
Sorry, Chicken Little, I doubt if you are gonna buy many leases around here.

Must make you sleep good thinking you are so smart.
Ha Ha, sorry but we own the shale, you just wanna lease it.
Too bad for you.
Permalink Reply by BirdDawg, plain ole' idiot on May 9, 2009 at 15:24
Babs in reply to your question about capped wells, the UMI also waits for the price to go up and get a faster payout and make more money.

Last time I checked, a royalty interest owner gets no royalty on a capped well, or didn't you know that?

Guess not, or you would not have made such a ridiculous statement.
Permalink Reply by Rockyford on May 7, 2009 at 15:02
Thank You everyone for your replies I will heed the advice you have so unselfishly shared. I'm trying to educate myself on all of these activities I am extremely grateful for your help.

landownerPermalink Reply by danny meyers on May 8, 2009 at 11:08
One thing I have not seen mentioned is that most leases in this area most likely will last for half a century. A lease will last as long as there if sufficient production. Your children and grandchildren will be bound by any lease you sign. You can sell the land but whoever purchases it will be bound by this lease. A lease may not be more important than a marraige but lasts longer and is next to impossible to get out of. A lease may not be forever like a diamond , but any lease you sign will most likely out live you and you have no chance for anullment or divorce. Be careful what you sign.

landownerPermalink Reply by danny meyers on May 8, 2009 at 11:33
Signing a lease in this area is a once in a lifetime event either be sure you can live with what you sign or be an unleased mineral interest.
Permalink Reply by Rockyford on May 8, 2009 at 15:14
Dont you sign for a three year lease then negotiate after the time limit is up?

landownerPermalink Reply by danny meyers on May 8, 2009 at 16:10
If there is a well drilled the lease will last however long there is sufficient productions. There are many areas held by leases that are 50-75 years old. No opportunity to renegotiate. My neighbors 1 mile to the north of me and 7 miles northnortheast of section 35 t15n r14w were unable to lease because they found that their lands were bound by a lease from over 50 years ago. Leasing particularly it this area is most likely a one time thing. What is most common is a three year lease with a three to 5 year option to extend for a small sum per year. I should point out that the option is for the oil company only , they can and will choose to extend the lease you have no say whatsoever after signing. Also the yearly payments will not be paid to you if the well is drilled befour the end of the primary term of the lease. I am located in section 31 t15n r14w 6 miles north of you in De Soto Parrish (county) La.

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