Oil & Gas Pro

Overriding Royalty

We were left ORI in Desoto Parish several years ago. I was lead to believe that ORI did not participate in working interest pre or post drilling. CHK has no problem taking 20-25% of our check each month for gathering charges.

I'm aware of multiple lawsuits against CHK in Texas and Oklahoma regarding these issues.

Can anyone shed some light on ORI in the Haynesville?

Thanks,

John 

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on June 3, 2014 at 5:46

Louisiana courts have stringent requirements for class certification in cases concerning disputes between lessors and lessees.  That's why there are no class action suits at this time as far as I am aware. 


landownerPermalink Reply by W. Marshall Shaw on June 3, 2014 at 5:53

This is correct.  Our family has our own lease form and, as a result, we would never be certified as a member of a class under normal conditions.


landownerPermalink Reply by Greedy Landowner on June 3, 2014 at 5:52
I'm sorry to be sort of direct in answering you but I have walked in your shoes for the last several years. With the politics in this state as they are and with an oil and gas mineral code which leans toward the industry about all that you can do to maintain your own sanity is get over it.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on June 3, 2014 at 6:15

Few Haynesville leases are custom.  The majority are standard form leases although there is variation as to language in Exhibit A addendums.   The requirements of class certification include facts beyond lease language.


landownerPermalink Reply by W. Marshall Shaw on June 3, 2014 at 6:33

Interesting topic, class action suits.  I've been out of the game a long time, but the rule used to be that state courts were tough about certifying classes, whereas federal courts were lax.  But state courts used to give a more sympathetic hearing to small landowners than the federal courts did, since state judges are elected for a term of office in Louisiana, whereas federal judges, many of whom are academics or corporate lawyers, are appointed for life.  This may have changed.

Permalink Reply by Franks on June 5, 2014 at 9:36

  I'm wondering if anyone here has ever taken or seen taken such issue to the Fed (Consumer Protection Bureau); or to the Attorney General.  These will typically completely take over and handle issues for you (until complete resolve or settlement).  Well, just that you'd think that better oversight would be forthcoming with these now in place.

Thks

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