Range Resources: Suggestions for Lessors and Unleased Land Owners - GoHaynesvilleShale.com2024-03-29T05:20:26Zhttps://gohaynesvilleshale.com/forum/topics/range-resources-suggestions-for-lessors-and-unleased-land-owners?commentId=2117179%3AComment%3A3670384&feed=yes&xn_auth=noBob,
In Texas, royalties are…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36730922018-03-10T01:23:32.527ZAndrewhttps://gohaynesvilleshale.com/profile/Andrew358
<p>Bob,</p>
<p>In Texas, royalties <em><span style="text-decoration: underline;">are</span></em> subject to post-production costs. In fact, even if a lease prohibits all "deductions from the value of the Lessor's royalty by reason of any" post-production costs, the Texas Supreme Court has ruled that post-production costs can still be charged, which was the holding in <em>Heritage Resources, Inc. v. NationsBank</em>. </p>
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<p>The Texas Supreme Court did side with the royalty owner in the…</p>
<p>Bob,</p>
<p>In Texas, royalties <em><span style="text-decoration: underline;">are</span></em> subject to post-production costs. In fact, even if a lease prohibits all "deductions from the value of the Lessor's royalty by reason of any" post-production costs, the Texas Supreme Court has ruled that post-production costs can still be charged, which was the holding in <em>Heritage Resources, Inc. v. NationsBank</em>. </p>
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<p>The Texas Supreme Court did side with the royalty owner in the Hyder case, but that case (like all other post-production cases) turned on the specific language in the Hyder's lease. The Hyder case did not establish any precedent that royalties in Texas are presumed to be cost-free.</p>
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<p>Louisiana courts have followed Texas' example, and have long held that royalties are generally subject to post-production costs, unless the lease itself says otherwise. LA Courts have generally adopted the same reasons as Texas courts in charging post-production costs to royalty owners, but LA does not have any standing precedent adopting the <em>Heritage Resources, Inc. v. NationsBank</em> decision. </p> Skip wrote:
<<< I kn…tag:gohaynesvilleshale.com,2018-03-07:2117179:Comment:36725162018-03-07T01:22:39.671ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p>Skip wrote:</p>
<p><<< I know mineral lessors with no cost royalty clauses that would stand up in court>>></p>
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<p>I think that was the gist of it in Hyder, that properly written, a royalty could be had without any post-production expenses downstream of the wellhead save severance taxes. </p>
<p>Skip wrote:</p>
<p><<< I know mineral lessors with no cost royalty clauses that would stand up in court>>></p>
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<p>I think that was the gist of it in Hyder, that properly written, a royalty could be had without any post-production expenses downstream of the wellhead save severance taxes. </p> Thanks, LN. I wish all our m…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36723882018-03-06T16:07:39.970ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Thanks, LN. I wish all our members who have missing unit surveys would be as proactive as you are. It is clear that the state is responding to your request for assistance. I expect they will do the same for any mineral lessor or UMI that goes through channels and request assistance in an acceptable and respectful manner.</p>
<p>Thanks, LN. I wish all our members who have missing unit surveys would be as proactive as you are. It is clear that the state is responding to your request for assistance. I expect they will do the same for any mineral lessor or UMI that goes through channels and request assistance in an acceptable and respectful manner.</p> Hi Skip,
I read over the ema…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36724782018-03-06T15:48:45.622ZLNhttps://gohaynesvilleshale.com/profile/LN
<p>Hi Skip,</p>
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<p>I read over the email history with LDNR regarding the survey and this is what I found:</p>
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<p>An Oil & Gas Company employee told me that the unit survey was done April, 2016.</p>
<p>_________________________________________________________________________</p>
<p> LDNR engineer - ..."from your request a compliance order will now be generated and sent to the operator giving them 60 days from the date mailed to submit a unit survey plat for the referenced…</p>
<p>Hi Skip,</p>
<p></p>
<p>I read over the email history with LDNR regarding the survey and this is what I found:</p>
<p></p>
<p>An Oil & Gas Company employee told me that the unit survey was done April, 2016.</p>
<p>_________________________________________________________________________</p>
<p> LDNR engineer - ..."from your request a compliance order will now be generated and sent to the operator giving them 60 days from the date mailed to submit a unit survey plat for the referenced unit. Upon receipt, the Office of Conservation will review and approve (if there are no discrepancies).</p>
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<p> From there a copy of the approved unit plat will be filed in our office and the originals will be sent back to the operator who will file it in the parish courthouse. You will be copied on the compliance order sent to the operator.</p>
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<p> Today is the deadline to submit the unit survey plat. If it doesn't come in today...a civil penalty will be levied on the operator once approved by the Commissioner. If the operator fails to comply after the levying of the civil penalty, then additional regulatory sanctions will be imposed as deemed necessary.</p>
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<p> My manager and director received the file and I will be issuing a civil penalty later today.</p>
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<p> I have not received or seen a survey...We received some response from the operator yesterday afternoon and they should be sending in the unit survey this week.</p>
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<p> We received the unit survey from XXXXX. However we are unable to approve it at this time. There is a discrepancy with the xxxxx that will need to be cleared up before approval. We are reviewing and are in contact with XXXXX.</p>
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<p> Approved Unit Survey Plat done on 12-22-16. This Well started producing in 2012.</p>
<p>_________________________________________________________________________</p>
<p>I have a copy of the Approved survey.</p>
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<p></p> Thanks for the clarification.…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36722332018-03-06T14:51:16.095ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Thanks for the clarification. There is a difference between the LDNR stating that there was no original survey done and that they had no record that the survey was ever done. This is an issue that I have been pursuing since last July. At the time I performed my research there were approximately 850 Haynesville Shale units that did not have unit surveys entered in the SONRIS database. I am of the opinion that surveys were not done to reasonable and required standards but keep in mind that…</p>
<p>Thanks for the clarification. There is a difference between the LDNR stating that there was no original survey done and that they had no record that the survey was ever done. This is an issue that I have been pursuing since last July. At the time I performed my research there were approximately 850 Haynesville Shale units that did not have unit surveys entered in the SONRIS database. I am of the opinion that surveys were not done to reasonable and required standards but keep in mind that title attorneys would not have signed off on Division Order Title Reviews without using some survey. Would this constitute fraud? IANAL For newbies, that means I Am Not A Lawyer.</p>
<p>For members following this thread as it relates to Range Resources, I have also turned into the DNR/OOC, a list of delinquent unit surveys in the Terryville Complex. This is a wide spread problem not limited to Haynesville Shale units.</p>
<p></p> Yes, I have the email. I keep…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36723782018-03-06T14:38:09.797ZLNhttps://gohaynesvilleshale.com/profile/LN
<p>Yes, I have the email. I keep copies of everything. They sent an email to me stating that there was no record that the survey was ever done. I requested to receive copies of all correspondence that the LDNR Engineer sent to the O & G Co. </p>
<p>Yes, I have the email. I keep copies of everything. They sent an email to me stating that there was no record that the survey was ever done. I requested to receive copies of all correspondence that the LDNR Engineer sent to the O & G Co. </p> Just to be clear, LN. The De…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36723032018-03-06T14:00:38.965ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Just to be clear, LN. The Department of Natural Resources told you that "the Land Survey was never done"? Or, did they say they had <span style="text-decoration: underline;">never received a copy</span> of the unit survey plat? If it is the former, do you have email copies of that statement?</p>
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<p>Just to be clear, LN. The Department of Natural Resources told you that "the Land Survey was never done"? Or, did they say they had <span style="text-decoration: underline;">never received a copy</span> of the unit survey plat? If it is the former, do you have email copies of that statement?</p>
<p></p> In 2016, the Oil & Gas Co…tag:gohaynesvilleshale.com,2018-03-06:2117179:Comment:36723012018-03-06T13:51:24.643ZLNhttps://gohaynesvilleshale.com/profile/LN
<p>In <span style="text-decoration: underline;">2016</span>, the Oil & Gas Co. sent a Div. Order to me. I am unleased. I contacted them for an explanation and was told that the decimal interest was calculated by using the Land Survey. (I kept email copies of my entire dialogue with them, which was quite extensive and was told that the Land Survey had been done). However, when I contacted the LDNR, it was discovered that the Land Survey was never done. (How were they able to be sure that…</p>
<p>In <span style="text-decoration: underline;">2016</span>, the Oil & Gas Co. sent a Div. Order to me. I am unleased. I contacted them for an explanation and was told that the decimal interest was calculated by using the Land Survey. (I kept email copies of my entire dialogue with them, which was quite extensive and was told that the Land Survey had been done). However, when I contacted the LDNR, it was discovered that the Land Survey was never done. (How were they able to be sure that the Landowners were receiving correct payments without using the Land Survey)? When the Oil/Gas Co. finally submitted the Survey to the LDNR for approval, it was not correct. They finally corrected the errors and the Land Survey was approved. So, for <span style="text-decoration: underline;">four years they sent Div. Orders to Landowners</span>...<span style="text-decoration: underline;">without an approved Survey from the LDNR</span>. </p>
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<p>This Well started producing in <span style="text-decoration: underline;">2012</span>. </p> Thank you. Live and learn!
Je…tag:gohaynesvilleshale.com,2018-03-03:2117179:Comment:36717702018-03-03T21:11:47.131ZJeanie Fallin Simmeringhttps://gohaynesvilleshale.com/profile/JeanieFallinSimmering
<p>Thank you. Live and learn!</p>
<p>Jeanie</p>
<p>Thank you. Live and learn!</p>
<p>Jeanie</p> Jeanie, I don't know if any m…tag:gohaynesvilleshale.com,2018-03-03:2117179:Comment:36716422018-03-03T20:33:12.982ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Jeanie, I don't know if any major or mid-major energy company would want it considering the current state of affairs. They paid a steep price to acquire the assets, $4.4B. I guess they might find a buyer at a steep discount to that.</p>
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<p>Jeanie, I don't know if any major or mid-major energy company would want it considering the current state of affairs. They paid a steep price to acquire the assets, $4.4B. I guess they might find a buyer at a steep discount to that.</p>
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