Replies to This Discussion

Permalink Reply by Spring Branch,mineral owner on October 9, 2009 at 7:07

Jason, remember this play (Haynesville) is not very old. Of the very small number of folks who have chosen to go unleased, probably virtually zero per cent of them have reached pay out status. Hence the reason you can't get anyone to respond.

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Permalink Reply by Land Owner on October 9, 2009 at 4:59

Dear Jason,

Calm down. I have turned down a lot more than that, because I am willing to look at this type situation as an investment opportunity. Put your faith in God through Jesus Christ. Ask God for help in your decision. His knowledge and wisdom passeth all your earthly understanding. Do not make a decision based on FEAR! I am sure you are experiencing great excitement. Get all the information you can and continue to learn about your options. Never get excited about someone flashing money in front of your face- it is a decoy to the real value. Take time to understand the value of your minerals, BEFORE you sell your "executive rights" to someone else through a lease. Consider what the O&G development will do to your land value, also. Being successful is making the best decision one can at the time. You are not on Chesapeake's time schedule. Each case has a unique set of circumstances, so I would have to know specifically your set of circumstances in order to give you an opinion. When you are unleased you have to be willing to be responsible about your position. The Louisiana Statutes spell out the operating costs. Will an oil & gas company take advantage of an unleased mineral owner? Will an O& G company take advantage of a leased mineral owner? The nature of the beast is not overcome by a lease bonus or a piece of paper with words typed on it with accompanying signatures.

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Permalink Reply by jason on October 9, 2009 at 5:31

Thanks for the encouragement. I am 90% certain that we are going to go unleased. We are looking at the long term investment. I am only 33 years old so I have time to reap the rewards of waiting.

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Permalink Reply by insomniacnla on October 9, 2009 at 10:58

Jason,

You should find out if your section has already been unitized. If it has not, you should follow the unitization process closely and find out where in your land is located in relation to any proposed unit. I don't know how it could be done with the Haynesville depths (I don't know a lot), but you want to make sure your property is INCLUDED within the unit boundries.

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Permalink Reply by E & E on October 9, 2009 at 12:36

Jason,
First off......just breathe. BirdDawg wasn't bashing on you, he just misunderstood that you were asking for a "Reality Check" hahahaa But his question of your location matters. Louisiana laws protect the UMO much better than in other states. I just happened to dig around on your profile page to see where your located:
26 16N 10W which is next to the section that CHK hit a good well.

You are not alone in being unleased in the Bistineau Field. We are unleased and "supposedly" they are to move into our section in a couple of weeks, even tho I think this is BS.(long story) Now I don't know how CHK handles things, but I do know one of the steps that a couple of operators have done once they move unto location. They send out a very large estimate of well costs in a form called a AFE. If you received notice for the unit, then you have confirmation that they know about you. In this cover letter you will get some choices: 1. Become a JV.....Joint Operator. 2. Lease at they price they are offering. 3. Go NON-Consent. Not responding to this letter just lets them know that you aren't participating. It's really is no big deal, IMHO a scare tactic of just how bad they want to pencil whip you. But in the end they can only charge you real costs.

You need to read this:
http://www.legis.state.la.us/lss/lss.asp?doc=86885
Be sure to read the whole thing. But this is where a UMO will not be charged a 200% penalty, a favorite scare tactic.
(e) The provisions of Paragraph 2(b) above with respect to the risk charge shall not apply to any unleased interest not subject to an oil, gas, and mineral lease. Notwithstanding the provisions of Paragraph 2(b) the royalty owner and overriding royalty owner shall receive that portion of production due to them under the terms of the contract creating the royalty.

But you absolutely need to read this wonderful work:
http://haynesvilleshale.ning.com/profiles/blogs/umi-basics
and
http://haynesvilleshale.ning.com/profiles/blogs/top-ten-myths-about...

I highly doubt that you will find anyone that has rode the well down with a check in their hands just yet. Especially with the Royalty Owners not receiving checks as a whole from the Haynesville, some have been waiting over a year...........

I would also go to Arcadia to the courthouse and see if you are the only one in your section that is still unleased. It is possible. If there is, they ya'll can get together. The more acreage you have the harder it is for them to let you stay unleased. I hate to say, but 15 isn't going to stop them.

Hope this helps.
Earlene the barfooted UMO

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Permalink Reply by jason on October 9, 2009 at 14:03

Earlene, Thank you so much for the info. Just a few things that we do know. My brother and I have a total of thirty acres and the last landman that we talked to did tell us that we are the only ones that are not leased in the section. Thanks again for the info, it is greatly appreciated.

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