Replies to This Discussion

Permalink Reply by Henry on June 16, 2010 at 23:36

AI,

Insist on 1/4 royalty. Do not settle for 1/5. Get "cost-free" royalties. Get a vertical pugh clause. Ask for a clause that requires the lessee to notify you any time the lease is sold or transferred. (This will make your life easier for the next 50 years.) All of these should be granted to you, if you ask.

This section is unitized by Chesapeake, not EXCO. So I would recommend that you see what offer Chesapeake will make to you, before leaping at the first offer you get.

Finally, decide what is important to you. If you live on the land, you might see if you can get a "no surface use" restriction. Read up on this site about leasing and see what other options people ask for, and if it's important to you, put it in your lease. But don't go overboard on unreasonable requests.

Remember, this lease will outlive you. Get it right the first time. Even if you pay $500 - $1000 for an attorney to help you, it's worth it IMHO. And... get a GOOD attorney with experience in Haynesville oil and gas. Several have been recommended on this site.

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Permalink Reply by AJ on June 17, 2010 at 3:05

Henry, Thanks for you comments. I am contacting CHK now. That was not the first offer. The first offer was from Tauren Exploration about 2 years ago. They offered around $300/acre and 3/16 royalty. This is when offers were huge. I'm in no hurry. AJ

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Permalink Reply by S.H.M. on June 17, 2010 at 3:17

AJ, can you tell me what the landman's name is?? Just curious.

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Permalink Reply by AJ on June 17, 2010 at 3:35

I would prefer not to mention any names. Sorry.

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Permalink Reply by S.H.M. on June 17, 2010 at 3:48

I understand. Thanks.

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Permalink Reply by AJ on June 17, 2010 at 4:04

After I agree to a lease, I will be happy to contact you with this info. Thanks for understanding.

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Permalink Reply by S.H.M. on June 17, 2010 at 4:58

No problem. I completely understand. Wouldn't want to jeapordize that pending lease. And good luck on it.

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Permalink Reply by AJ on August 8, 2010 at 19:29

It has been 2 months and I have not agreed to anything. The company won't budge, so far. I just discovered that I am 2 sections across from a section that the same company has applied for 7 new alternate horizontal units. I too am in the Johnson Branch.

Does anyone know what is going on in my section? How does one find out what applications has been submitted for his/her section? I discovered this application on GHS. I am definitely holding out for 25% royalty. But, I am hearing that most today are getting offers of $5000/acre bonus. Any advice? Should I lease or go UMI? I looked at the calculators. It seems to me that leasing gives the best guarantee. But, with this action happening so close, I just don't know. I am confused, but patient.

Attachments:

• JBranch.pdf, 81 KB

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Permalink Reply by AJ on August 8, 2010 at 19:36

Here's another attachment.

Attachments:

• 36-16N-15W - 7 New Alternate Wells.jpg, 378 KB

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Permalink Reply by Skip Peel - Mineral Consultant on August 9, 2010 at 1:58

AJ, there is an existing Haynesville well in your section. A vertical completed by Fossil in 2008. Have you checked your title to the minerals? Since the other mineral interests in the section that are leased are Held By Production, there is no need for EXCO to drill any time soon. They can wait. If you have clear title to your minerals, you should be contacting Fossil for reports due you as an Unleased Mineral Interest. And you should be prepared to wait until EXCO spuds a horizontal well in the section. There is no compelling reason for EXCO to give you their best lease offer until they are ready to develop your section.

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