Replies to This Discussion

Permalink Reply by kittycatmama on June 26, 2015 at 13:54

what township, range, section, and parish are you in

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Permalink Reply by Skip Peel - Mineral Consultant on June 26, 2015 at 13:58

Jackie's mineral tract is in Texas as evidenced by the survey number, A-398, and the unit designation, BSI.USFS Unit F6.

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Permalink Reply by dbob on June 27, 2015 at 2:41

When did your Encana lease expire?  

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Permalink Reply by jffree1 on June 27, 2015 at 5:52

What is the date at the top of your lease, please? EnCana assigned their San Augustine leases... most to XTO, on acreage which had not yet been drilled. That well was spudded by XTO on 24 April, 2014 so it appears that XTO thinks your EnCana lease was still within term on that date. Spudding the well effectively held your lease past the term expiration date even though you did not know there was a well.

The well was completed in Nov. 2014 so you will receive an initial payment for four or five months, probably, and then you will start getting a monthly payment. Congratulations. Sign the Division Order unless you think your lease expired before 24 April, 2014. In that case... you need to contact XTO about a lease before you sign a DO.

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Permalink Reply by Jan Holland on June 29, 2015 at 4:33

Do not sign a DO that requires you to hold the lessee or operator harmless or requires you to prove up your interest.

Regards,

Jan Holland

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Permalink Reply by Jackie on June 29, 2015 at 16:58

Hi,

We received the original lease from EnCana on January 22, 2010, so this January 22, 2015 would have made 5 years.  Now when we signed up with EnCana it was for well A-398 in San Augustine County.  However, we were never advised that EnCana had assigned everything over to XTO.  We started to get small checks from EnCana for A-398, during the beginning of the lease then the checks stopped.  Then XTO started to send checks for A-398, (small checks), then that stopped.  So our lease expired this January 22, 2015.  We have no new lease to sign, so that's why I said, I was confused.  Also, the mineral rights on the Division order is different from the one on our original lease with EnCana. I am waiting for more information before I sign any Division Order or anything else.

I want to say thanks for everyone that replied and hopefully, this discussion will help someone else as well.

Also, thanks for Haynesvillshale.com it is great help!

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Permalink Reply by jffree1 on June 30, 2015 at 1:55

I don't think your lease expired. Instead, I think that the part of your mineral tract, which is in the A398 Unit, is small enough that when the production volume declined precipitously in 2011 your checks stopped. Most operators won't send out a check unless the amount to be paid is $100.00 or more. They let the payments due accrue until they reach that point and then they cut a check.

Look at the attached production reported on the A398 #1H. You will see when the production dropped to less than 1/2 of the month previous and you will also see when XTO became operator of record. My only point is that, even though XTO may owe you some royalties on the A398 well, that well has had a production volume for every month since completion with only one exception and that was when they completed (frac'd) the F6 well in Oct 2014. It is not shut in and certainly isn't plugged and abandoned (P&A) so if your lease was held by that well in 2011... it is held today and did not expire in January even though you have not received a check recently.

There should  be a phone number to 'Interest Owner Relations' on your cover letter for the DO. Call them and ask them why you stopped receiving payments. You will also find the phone number at the bottom of this web page: XTO Interest Owner Relations.

If you leave a message be sure to include your Owner ID Number (look on the Division Order).

Attachments:

• Black Stone Unit A398.pdf, 174 KB

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Permalink Reply by Jackie on June 30, 2015 at 9:30

Thank you jffree1, you have always been a help to me, as well as Skip Peel. I will look forward to this matter and give them a call.

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Permalink Reply by jffree1 on June 30, 2015 at 12:19

I am always happy to help whenever I can. I hope you get a nice check soon.

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