TEXAS ALERT: Mineral Rights threatened by Tx HB 100 -forced pooling will limit your ability to negotiate a good lease.

We must take action NOW to defeat HB 100 in the House Energy Resources Committee on Wednesday 3-13-13.

Please read Up on this bill at http://www.tlma.org/legislative.htm

The Forced Unitization Bill, HB 100, has been set for a hearing at the House Energy Resources Committee this Wednesday, March 13.  This is an extraordinarily bad bill for landowners and mineral interest owners.  It is now time to let committee members know this legislation will take away our property rights and that they should vote NO on the HB 100.   The bill would take away landowner rights when negotiating oil and gas leases in several different ways; the main talking points and email addresses for committee members are below:

FIVE REASONS THAT HB 100 IS BAD FOR LAND AND MINERAL OWNERS:

1.      It only requires 70% approval of the total working interest, not working interest owners, which can eliminate any leverage small landowners may have to protect their interests.  Meaning if 1 person owns large acreage that makes up 70% of the land in the unit, he can agree to pool even though 30 guys who own small lots don't want to.

2.      It allows the Commission to issue a forced pooling order before the operator has ever asked the royalty interest owners for approval.

3.      It leaves no real choice.  If an owner makes the decision to not ratify the forced pooling order, the operator can withhold from the owner’s proceeds up to three times what the owner would have paid if he had ratified.

4.      It gives wide discretion in how proceeds are distributed between landowners, allowing the use of any factors “as are reasonably susceptible of determination” when deciding what a tract’s fair share of the proceeds should be.

5.      The current system of leasing oil and gas mineral interests has withstood the test of time for over 100 years.  Things are working in Texas.   Those who want this bill want to change the law so they can make more money and sacrifice private property rights at the same time.

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There is fairly new case law in Texas that says one can not mineral trespass or by fracking. In some cases, a horizontal drain hole can be drilled 467' from a lease line and then fracked into the offsetting lease. The wellbore and frack can be designed for this purpose.

This is what I have an issue with currently.  Rule 36? I think they call it?  where as they have run the lateral up to our property line and have said they are not pulling from the resources we know is on our property, was found in 1978, declared a dry hole and it was not by any means.  It burned for over a week, at the time they did not have the technology to control it and no pipeline available.  Mitchell tried every option back them and finally plugged it.  We are leased, but with a different company than what is drilling next to us.  I am on the fence on some of the bills coming forward, and  I am a landman as well   Just my personal thoughts conflicts with my logical processes here on this situation.  

In the oil days I would not like HB100 but now 90% of all the wells being drilled are horizontal. This takes large acreage and all it takes is one or two small anti-oil acreage owners the pupu the whole drill trac! This is not fair to the other 95% that are leased and want to be drilled! This whole nation caters to the minorities which has got to stop! I already called all the representatives telling them I hope that they approve this bill!

I believe you have MISSED a major point. The bill currently applies to ONLY SECONDARY UNITS, ie waterfloods. IT DOES NOT apply to the pooled proration unit created to drill a horizontal well. You are arguing about the wrong thing. 

My email has been sent. I saved the entire House Energy Resources Committee's email addresses to a distribution list. All aboard, people!

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Thank you! We need to KILL THIS BILL.

WHY????

I guess you've been duped by Adubu as well. What kind of name is Adubu? Read his blogs, he clearly doesn't speak good English and has an agenda! Read what I have to say and I'm not afraid to back it up! Just Ask!

This is simple...who sponsored this bill so he/they can be shown the door?

SO THE LIBERALS CAN STOP US FROM DRILLING?

Never going to survive a legal challenge. This has Big Oil written all over it. Pathetic.

A legal challenge would be too expensive and too late. Please contact every member on the committee and ask them to VOTE NO on HB100.

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