Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on August 31, 2018 at 9:08

There may be some BLM property involved with this well so it may be a prescription well after all.

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Permalink Reply by Dion Warr, CPL on September 1, 2018 at 14:03

TD:

So, now I'm thrown - what is the scenario that would create a BLM lands prescription problem?  Normally property deeded to the government with a mineral reservation would be imprescriptible.  Is this land reentering private commerce with a prior existing mineral reservation in place at the time of acquisition by the USA?

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Permalink Reply by Lisa Melder-Johnson on September 1, 2018 at 15:03

There is BLM close.  This is private land that rig is on and there is several other private lands around it.  BLM has this as updated lease in August but has status as pending not approved LAES 059344X with last action & Agreement Filed 6/28/18 & info on lease last updated 7/26/18.  BLM Jackson Field Office.   It also has a map with 33,837 pending acres in Gulf Coast Mesozoic Oil & Gas Exploration.  And all of this acreage is connected and includes this Gordon well.

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Permalink Reply by Two Dogs, Pirate on September 1, 2018 at 17:07

Dion, I just did a quick look and saw where these Gordon leases were done in July for three year primary terms. I did a another quick look after I posted that this may not be a a prescription well and saw a lot of old BLM leases that may be fixing to expire and thought there may be something more going on here. I am snowed under with another project and don't have time to get side tracked at the moment.

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Permalink Reply by Lisa Melder-Johnson on September 1, 2018 at 17:42

This was in AUS C RA SUX (+/- 1920 acres) before on Proposed Units map I have of Chesapeake's done by Leon E. Comeaux & Associated out of Lafayette, LA.   You may want to also check out www.thedrillings.com, leases, Louisiana, Rapides Parish then Pending Status ones.   There if info & maps too on all the old leases, closed, pending & approved.  Not sure if I am helping or not.

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Permalink Reply by Lisa Melder-Johnson on September 2, 2018 at 3:07

So is this still a prescription well.   And it appears that R & R Royalties is also tied to Magnum Producing as they have same address & owner.   So do they have the leases on all BLM in the area under RR.   All this land in this area was once Chesapeake leased or at least until around 2000, so when CHPK's expired RR must have picked a lot of them up in 2008.  Looks like several others has been extended too.

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Permalink Reply by Dion Warr, CPL on September 3, 2018 at 14:03

Lisa:

That's not a prescription well.  Prescription refers to the operation of law under which a prior created mineral servitude is extinguished due to non-use, and instantly returns to the current surface owner.  The actions contemplated here refer to leasehold rights which would contractually expire.  Lands owned and leased with the BLM have their own terms and peculiarities far and apart from the run-of-the-mill lease considerations, particularly if a federal unit is involved.  It doesn't come up so much in LA because there is a relatively small percentage of federal fee land tracts in the state.

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Permalink Reply by Lisa Melder-Johnson on September 3, 2018 at 15:35

So when my private land is in a BLM Federal Unit (LAES-057320 of 1974 acres) that is leased until 2022, does that prevent me from leasing my land to another party?

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Permalink Reply by Dion Warr, CPL on September 3, 2018 at 16:36

Lisa:

You are under contract as a private owner.  Mere inclusion into a unit is normally not sufficient to hold your lease (unless you contracted that it was) - primary term (and/or extension thereof), operations and/or production in paying quantities over the expiration date would be.  If you are included into a producing federal unit (which units can be MUCH larger than ordinary units) and are entitled to receive royalty, you would be held by any production obtained in the unit.  Operations applicable to hold the unit would also be sufficient under the terms (as you are an "owner" within the unit).  What constitutes "sufficient operations" to hold rights as to a federal lease is different than that as one would expect under a typical private owner lease form.

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Permalink Reply by Lisa Melder-Johnson on August 31, 2018 at 10:54

Thanks TDP, there is an awful lot of work and equipment going into site. Sit is 2 miles from me.

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Permalink Reply by Lisa Melder-Johnson on September 2, 2018 at 4:27

Looks like I am in BLM LAES 057327 Section 26 of T2N R3W which is listed as Approved with an expiration date of 4/30/22.   Does this mean the lease has been extended for 5 years?  MBI Oil & Gas LLC, ND is 90% Owner.

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Permalink Reply by Two Dogs, Pirate on September 2, 2018 at 10:02

I spent all of about 5 minutes looking at Gordon and about 2 minutes looking at the BLM leases. Now I wish I wouldn't have wasted 7 minutes. I kind of knew R&R Royalty sounded familiar.

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