Update on please help discussion. Another Shelby county post
Hi...I posted about the landman who came to Missouri to see us over the weekend, (unbeknowngst to us).
My husband just got thru meeting with him. He seems nice. Honest. And like he's shooting straight with us. (The last landman told me his boss told him to get the executor to sign the lease without me having a say in it! And other lowdown dirty tactics).
First off, he said this is not Haynesville. I asked my husband how far they are drilling, he said 18,000 ft. I thought that was Haynesville. My husband said, well it's not PROVEN Haynesville. This is a vertical well, not a horizontal.
Also he said the production costs are a lot higher then the Barnett Shale because in the Barnett, the gas there is a pure gas. This gas here has other gases in it that have to be removed. Like three other things he named off, making it more costly.
In the contract he said he's already got it approved for it to be cost free.
He's working on the bonus. My husband said the landman said, they were in fact signing people up and he showed him a 25, 000k bonus that was back in the past when the economy was good. Even went as hight as 30k. He said that was Cpk doing that and they just about put themselves and all the other companies out of buisness doing that.
He was also talking about another guy who was cut out of the deal. They were on the corner and they refused to talk to the landman and so they just cut their block out of it all together. Do you have to be on the corner for that to happen? This guy was on the edge of their " table". I feel for him.
Anyway, because of the extra expense in production costs, and the cost of gas being so low, they don't offer those bonuses here. Well, we've all known that. But just trying to get the most decent offer we can get.
They all learned from the Barnett Shale not to get involved in bidding wars. He said Devon doesn't have any competition where our minerals are anyway in Shelby county, Tx. They've got it all. He was showing my husband maps and charts.
My husband told the landman he saw some bonuses in Shelby county in Dec. for 5k an acre. The landman did verify that he signed people up for that back then. The area this is in is called Pay Day in Shelby County.
So...now we're just trying to decide what to do. Oh also, he said he believes in order for us to be a working interest, we have to put money in to it. That's not the side that he actually works so he doens't know for sure. That doesn't sound right to me. I've always read on here that you just get paid revenues after they pay off the well and royalties and production and transportation expeneses.
He just called my husband on the cell phone and said, he didn't want us to think that they were going to suspend us if we didn't sign. That that's not what they're going to do. (now I really think he's reading my posts!)
Anyone have any input here? Again, thanks for reading.
My husband just got thru meeting with him. He seems nice. Honest. And like he's shooting straight with us. (The last landman told me his boss told him to get the executor to sign the lease without me having a say in it! And other lowdown dirty tactics).
First off, he said this is not Haynesville. I asked my husband how far they are drilling, he said 18,000 ft. I thought that was Haynesville. My husband said, well it's not PROVEN Haynesville. This is a vertical well, not a horizontal.
Also he said the production costs are a lot higher then the Barnett Shale because in the Barnett, the gas there is a pure gas. This gas here has other gases in it that have to be removed. Like three other things he named off, making it more costly.
In the contract he said he's already got it approved for it to be cost free.
He's working on the bonus. My husband said the landman said, they were in fact signing people up and he showed him a 25, 000k bonus that was back in the past when the economy was good. Even went as hight as 30k. He said that was Cpk doing that and they just about put themselves and all the other companies out of buisness doing that.
He was also talking about another guy who was cut out of the deal. They were on the corner and they refused to talk to the landman and so they just cut their block out of it all together. Do you have to be on the corner for that to happen? This guy was on the edge of their " table". I feel for him.
Anyway, because of the extra expense in production costs, and the cost of gas being so low, they don't offer those bonuses here. Well, we've all known that. But just trying to get the most decent offer we can get.
They all learned from the Barnett Shale not to get involved in bidding wars. He said Devon doesn't have any competition where our minerals are anyway in Shelby county, Tx. They've got it all. He was showing my husband maps and charts.
My husband told the landman he saw some bonuses in Shelby county in Dec. for 5k an acre. The landman did verify that he signed people up for that back then. The area this is in is called Pay Day in Shelby County.
So...now we're just trying to decide what to do. Oh also, he said he believes in order for us to be a working interest, we have to put money in to it. That's not the side that he actually works so he doens't know for sure. That doesn't sound right to me. I've always read on here that you just get paid revenues after they pay off the well and royalties and production and transportation expeneses.
He just called my husband on the cell phone and said, he didn't want us to think that they were going to suspend us if we didn't sign. That that's not what they're going to do. (now I really think he's reading my posts!)
Anyone have any input here? Again, thanks for reading.
Views: 170
Replies to This Discussion
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Permalink Reply by Sarah on
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Hi Jim...in my first post about this...the Please Help a landman wants us to sign a contract. I said he started out offering 3200 our minerals. We only have 6.51 net acres. But he's talking 3200 for the whole thing.
We're really considering just being a working interest. Why not? There are some good producing wells there.
Might as well see if there's shale where we're at too.
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Permalink Reply by Checkmateking on
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Sounds like he doesn't know a whole lot?
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Permalink Reply by Adam on
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I work in shelby county. If you tell me what survey you are in, I can tell you whether they are the only company working there and what the going rate is.
Let me know if you would like.
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Permalink Reply by herefordsnshale on
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I haven't posted in a while, just been "lurking" and reading but I had to say something here. Now I'm not an expert and could be wrong but I see several problems with what that landman has told this lady. FIrst of all, I have never heard of an 18,000 foot vertical well in this part of the country. Second, other "gases" that have to be removed that the Barnett Shale did not have? That's the first I've heard of that too! Third, this guy drove all the way to Missouri? These days it's hard to get a landman to return a local call!!! Sarah, it might well be in your best interest to take Adam up on his offer and have him see just what is going on. Like I said I'm not an expert but I have some knowledge and this just doesn't sound right!
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Permalink Reply by Sarah on
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Okay, thanks everybody. My original post is here:
http://www.gohaynesvilleshale.com/forum/topics/please-help-a-landma...
Sorry to have made it more confusing by posting separately.
In one of the responses I gave to intrepid I posted the minerals are here:
I'm just copying and pasting.
I said to intrepid:
Well, based on this first contract a different company gave me. This was Kaiser and they were trying to do a title cure before they sold this to Devon. It said 156.25 acres more or less Shelby County, Tx. and being the same land described as the Frst Trace containing 82 acres a part of the John King survey, A-408, and the Second Tract, containing 74 acres, a part of the W.C. Alvice Survey, A-20, and a part of the James Hinton Survey, A-289.
I guess the 6.51 acres I have are spread thru out all these Surveys. Don't you have minerals in Shelby county also? I believe these surveys are ten miles south of Center.
The first well that was spuded back in 2000 was done by Marathon. I guess that was targeting the Cotton Valley.
Intrepid said to me:
Those three surveys do come together at a point near a Devon permitted location in the Pate "A" unit. Just south of FM 138 in the Arcadia community. You are also near the Oliver unit which has a large producing well and west of one McSwain unit which has several good wells. I think Jim Krow gave you some good advice about making a counter offer. You also might benefit from getting some good legal advice from someone in the area especially regarding exactly what you own and the prior royalty owed. Have you asked the landman to have someone from the company contact you about the prior royalty and what amount is owed? Are you dealing with Devon or some flipper on the current deal?
So Adam, I appreciate your offer to let me know what the bonuses are there. I don't think they're all that good now. But we can tell Devon really wants us to sign.
Thanks so much herefordsnshale...I appreciate your input as well. Tons.
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Sarah
I first want to make it clear that I am a landman working in Shelby County. I do not work for Devon. I represent a prospecting company doing work all over Shelby County.
With that said, $3,200 comes out to about $491.55/acre. We are paying very similar prices throughout Shelby County. I dont want to violate any solicitation rules, but feel free to contact me if you want further private help.
I have been reading on landowner rights in participating wells. There is little to no case law available on this. I am continuing to research this until I find an answer.
Was this landman from Missouri and just visiting you while he was home? Sometimes we will find a landman near a person that lives far off and have them visit for us. I just cant imagine someone driving from East Texas to Missouri over 6.51 acres. Especially with the way companies have been putting restrictions on expenses and mileage.
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Permalink Reply by The_Baron on -
HE may have just said he made the drive to make the landowner feel time was limited. Or he had multiple landowners to contact.
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Permalink Reply by Lynn Hannath on
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Adam,
So $500 acre is a reasonable amount for Shelby County right now? My sister and I own mineral rights to 300 acres in Shelby Co. and were offered $500/acre by Petrohawk a couple of weeks ago. I am in Tulsa; she is in Center so I am still waiting to find out if they were able to negotiate anything higher.
Thank you for your help. My apologies if I have posted this incorrectly. I have been trying to stay informed by reading the posts but I have never actually posted before.
Lynn
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Well I have done more research and have found that it is in your best interest to lease.
As an undivided mineral owner, you do not have to be leased unless you are under a drillsite tract.
Therefore, if your interest is just under a tract that is being pooled and not drilled on, the company does not have to let you participate. Your property has to be leased by someone to participate.
I know it doesnt sound right but that is how Texas works. I have talked with several people today including posting on a few other sites and this is the answer that I have gotten from several people.
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Permalink Reply by intrepid on
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Keep in mind the royalties you may be owed from the other well(s) and the lease are seperate issues. Jim Krow had good advice about making a counter offer. Have you spoken to any others with interests in the lease to see what bonuses they got? How recent were they?
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Permalink Reply by Sarah on
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Hi intrepid, no...I haven't spoken to any other mineral owners in the lease. Not sure how recent they signed. Thanks for your input. I know Jim Krow said to make a counter offer, but the land man said they were working on getting a better bonus. I'm not sure if we should sign anything but go as a working interest. I'm going to have to get some advice either from a land man or an oil and gas attorney. We've got several things going on at the moment...neither my husband or I have contacted anyone yet. I have some good referals for attorneys. I'm going to call one soon. Wish my husband had time to deal with this! I barely see him as he has an hour commute one way, and doesn't get in till 3am.
He had something more pressing in front of him today.
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