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.
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
Replies to This Discussion
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Permalink Reply by Jay Murrell on -
Jerry:
It is most instructive to note that none of the "sea lawyers" on this site have anything to say about you comment. Fact is, many HA horizontal wells N of I 20 suck.....I'm sure more will be revealed as time goes by.
Pigs get fat and hogs go to slaughter.
Best,
Jay Murrell
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Permalink Reply by Jay Murrell on
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Root, hawg, or kack....
Et tu Earlus??
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Permalink Reply by Bobi Carr ("parker") on
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Jay,
Just how many HS horizontal wells have been produced North of I-20?
BTW, have you happened to look at an Isopach map of this area? There is some thick shale in the Benton area. It's gonna be hard to make a bad well when they start. IMHO.
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Permalink Reply by Spring Branch,mineral owner on
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Parker, It is my feeling that the northern limits of the OVER-PRESSURED Haynesville Shale are being defined as we speak and it may not go as far north as people were hoping. Just my opinion. Shale thickness is great, but it is not the only important ingredient, apparently.
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Permalink Reply by The_Baron on
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I think this is just speculation for now. The well that CHK is drilling on Swan Lake road north if I-220 will say alot. I agree with Spring Branch that it will take more than just shale thickness to make a well. Other factors such as the porosity of the rock will come into play.
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Permalink Reply by Bobi Carr ("parker") on
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Spring Branch,
Look at the last CHK presentation. I recall seeing a plethora of holes drilled. They have cores of these holes not just a map showing the thickness.
It is my opinion that they are not testing the boundaries, but that they are testing HOW to produce within the known boundaries.
But I will be the first to acknowledge that this is only my opinion.
It just stands to reason that in this economic climate CHK nor others are going to be going out on a limb.
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Permalink Reply by Spring Branch,mineral owner on
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They also have contractural agreements to drill wells in places where, if the had their choice, and with the new info in hand, they might not for now, at least. Just my opinion. Remember the one quality that sets the Haynesville apart is the pressure gradient.
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Permalink Reply by Spring Branch,mineral owner on
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graysands, what was the date of Mr Seabaugh's comment and what was the price of natural gas @ that date?? My guess is that a minute fraction of the acres in NW Louisiana leased for $24-$30 thousand an acre and those occurred in a several week window when it apperared that nat gas might go to $15 to $20 per mcf. It didn't!
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Permalink Reply by Spring Branch,mineral owner on
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KB ....pertaining to the Haynesville and attempting to be realistic.....this is a "down" mineral leasing market compared to what? I am negotiating to lease some acres soon for $5,000/ac, three year lease, 1/4 royalty, horizontal and vertical Pugh. It is in a "good" area, but I would have never, in my wildest imagination, thought of getting those terms one year ago today! I can say that the company I'm planning to lease it to will drill the section. Fair market is what a "willing" buyer will pay to sell/lease from a "willing" seller. I'm not 100 % certain that I'm willing, but I'm sure thinking hard about it.
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Permalink Reply by Bobi Carr ("parker") on
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Spring Branch,
East 80 is holding together until they get $17,500.
Just different tolerance for different people.
I think the point is that if people THINK that others are getting $5000 that is what they will be willing to accept.
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Permalink Reply by Bobi Carr ("parker") on
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I hope that there are many that are getting more than $5,000 per acre.
I know many that won't accept that amount.
But it is all a personal decision based on what each individuals needs are at the time.
I nor anyone else can say that $5,000 or $17,500 is either good or bad.
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Permalink Reply by Spring Branch,mineral owner on
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I agree with you about the personal decision............when East 80 gets $17,500, let me know. Actually you won't have to cuz the price of nat gas will be at $10.00 or better by that time. I don't mind my son inheriting what I have, but I would like to see some income during my lifetime.
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