Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on May 20, 2010 at 1:37

There are numerous Section 15's in Shreveport. You need to post the township and range so we know which one you are referring to.

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landownerPermalink Reply by Henry on May 20, 2010 at 1:57

Britnee,
Don't worry just about the up-front money (although that is important). Think about what is important to you and your heirs. Here's my list of things you want to include in an addendum, if you sign a lease. Even for 3.5 acres, it is worth having an attorney draw this up for you.

1. Cost-free royalties. And don't settle for anything under 25%.
2. Vertical pugh clause -- reserve for yourself the formations both above and below what is drilled in the primary term.
3. Strict rules on the ability of the operator to shut in the well. And reasonable shut-in payments.
4. A rule that you must be notified any time that the lease is sold or assigned to another company.
5. If you think the surface of your land might be used, that's a whole new area. You will want to ensure you are adequately compensated for drillsites, traffic, pipelines, etc.

Even for something as small as 3.5 acres, I think you should get this. Remember, this lease will likely go for 50 - 100 years, so don't cut corners. Do it right.

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Permalink Reply by Britnee Rakes on May 20, 2010 at 4:39

The land is in Section 15 T17N, R14W

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landownerPermalink Reply by Spring Branch,mineral owner on May 20, 2010 at 4:58

$5000-7000 per acre. 3 1/2 acres is a pretty good size urban tract. You also want 1/4 cost free royalty.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on May 20, 2010 at 5:02

There are no completed Haynesville horizontal wells in your immediate vicinity to help gauge the quality of the shale. With a capable operator, I would expect an average or slightly better well. Discounting any possible surface value since I do not know the nature of the 3 1/2 acres, I'd agree with Spring Branch.

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Permalink Reply by GEORGE D BROCKNER on May 20, 2010 at 5:29

I have a couple of acres in 17/14 as well. As you can see from the last Units by Township map recently posted here, there is nothing going on in our t/s. In fact, our t/s is the only t/s in the entire H/S without a unit or well. Nothing.

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landownerPermalink Reply by P.G. on May 20, 2010 at 5:42

No, ours don't have anything going either but I'm not complaining.
I'm hoping they let our lease expire so the next time around, I can do it right...

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Permalink Reply by GEORGE D BROCKNER on May 20, 2010 at 7:46

I'm not complaining. I was just making a point about the map. Almost smack dab in the middle of the H/S is a t/s (17/14) that has zero units, zero wells and evidently zero interest. I know it's in the middle of the city and that that is the least desirable place to put a rig, but zero, nothing. And I can't even say I'm waiting for my lease to run out 'cause I have'nt leased the first time.

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landownerPermalink Reply by P.G. on May 20, 2010 at 8:27

Is it possible to pump it into tanks and then truck it out?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on May 20, 2010 at 8:36

Reminds me of the guy who was the leader of the East 80 Coalition. Which probably explains in part why we never hear from them any more.

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landownerPermalink Reply by Spring Branch,mineral owner on May 20, 2010 at 10:07

Say it is not so!

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landownerPermalink Reply by Spring Branch,mineral owner on May 20, 2010 at 10:02

George, 17/14 is anything but right smack dab in the middle of the Haynesville shale! It is very much on the northern edge of the play. You will eventually be leased, but Shale Geo is right. There are some undesirable aspects of urban drilling, which become even more undesirable @ $4.20 gas. P.G., you must be referring to your Section rather than your Township about not having anything going on.

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