Unleased owner problems getting accurate timely force pooled revenue??

Many people here have referred to the significant but ill-defined difficulties with getting force pooled revenues. But what if I don't do anything? Will I not get anything? Will I only get a small fraction or 80% or 50% or only 10% or less of what I am owed? Will it be many months or years after well payout before my revenues start, if at all? Will I have to expend large legal sums and go to court or hire an expensive O&G accounting service to obtain what I am owed?

GETTING MY MONEY..

Say my 10 acres is forced pooled and a producing well is completed. Also, say I am senile, or living in Siberia or Tahiti, or on the lam from the feds, or in prison, or otherwise. Say I don't have the time, energy (retired), funds, legal resources, knowledge or inclination as an out-of-state or out-of-country mineral owner to track drilling costs, operating expenses, well payout, etc, etc. Does lots of problems getting my money suggest that I might not get any money or possibly only a small fraction, if any, of what I am legally owed and even then it may take long after well payout (years?) before I start getting ANY revenue from well production?

What I am wondering is will a force pooled owner with little or no financial management or tracking efforts receive significantly more revenue (not necessarily the maximum or optimum amount owed and not until well cost is recovered) than if he/she were leased. Or, is it likely that a well operator will delay or postpone informing force pooled owner(s) of well payout and not initiate revenue payments until the owner raises the issue? Is having to go to court one of the likely problems to get my money? Can anyone post a good list of "lots of problems" a force pooled owner will face to get their money?

Sorry, all I have are questions and no answers.

Tags: forced, pooling, problems, recovery, revenue

Views: 209

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Replies to This Discussion

Permalink Reply by Jay Murrell on February 20, 2009 at 4:07
The people that are proposing this must be the same folks that instructed the clerk's of court in Texas close their doors last year to all persons doing research in the conveyance records until they (the Clerk's) had expunged social security numbers from all public records. That lasted about a week……. the hue and cry became deafening and they are now hunting the proponents with dogs.

There are some real bozos in the Texas lege.
Permalink Reply by The_Baron on February 23, 2009 at 8:05
That should be somthing people should consider before allowing the information to be on a public document.
Permalink Reply by The_Baron on February 23, 2009 at 8:14
All the deeds that I file have the first five digits shown as X's

They appear as XXX-XX-1234.
Permalink Reply by The_Baron on February 23, 2009 at 8:15
I have never had a problem. We keep a W-9 on all our payees, and send out 1099's as required.
Permalink Reply by Robert Griffin R on February 19, 2009 at 14:11
Oil and Gas Operators are Not Entitled to Reimbursement of Production Expenses from Unleased Landowners - Caldwell Lands, Inc. v. Cedyco Corp., 2007-1515 (La. App. 3rd Cir. 4/2/08), 980 So. 2d 827

http://www.theenergylawblog.com/2008/12/articles/exploration-and-pr...

What I get from this is that an operator must demonstrate a "good faith" effort to provide owner with required well data and revenues or risk losing the right to withhold costs from landowner revenues.
Permalink Reply by Jay Murrell on February 19, 2009 at 15:42
KB:

I understand that you are a female lawyer. If that's so, you would be much more qualified than moi to give people a cost/ benefit analysis re getting into a contest with an oil company. Do you have much experience with litigation?

Best,

Jay
Permalink Reply by Dion Warr, CPL on February 19, 2009 at 17:16
KB:

I'm getting the strangest feeling of déja vu reading this thread...
Permalink Reply by Greedy Landowner on February 20, 2009 at 0:04
Most of the local attorneys were bought out by chesapeake several months before this thing became public. The attorneys in turn advise the landowners to sign deals which really benefit the oil and gas business, then the attorneys get "double paid" when they charge the landowner for their services. It is happening all over the country.

There is only one source of pure, beneficial and honest information. That source is the landman. Now go out and hug one today.
Permalink Reply by sesport on February 20, 2009 at 3:18
GL - I'm not an expert about this, but it's my understanding that in some situations an attorney could not take a l/o's, m/o's case, and therefore money, if they already represent one of the energy companies/lessees because of conflict of interest. I don't think an attorney can represent both sides of an issue.

I'm open to clarification & correction on this. :0)
Permalink Reply by The_Baron on February 20, 2009 at 4:07
CHK is a bully in more ways than that. In the fayetteville shale they bought up and shut down abstract plants, keeping their information for their benifit, but pushing out the competetion that needed thoses resources.
Permalink Reply by Muddigger on February 20, 2009 at 1:42
I saw your landman moonlighting at H&R Block
Permalink Reply by Jerry Bruce on February 20, 2009 at 10:31
the answer is very simple stop holding out for a udrillion dollars per acre and get leased, because i can tell you this the haynesville is already starting to show signs of what is the core area and what is not, I broker Mineral Rights deals every day and the main core area right now is the haynesville and there are places in the northern end of Caddo and Bossier parish that have had very poor showings from wells drilled there IE( N T18 and up that my buyers want NOTHING to do with at all be cause of the wells poor showings so far,, If you just go and get leased, Guess What you will not have to wrry about getting your share anyway

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