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Permalink Reply by 1kw6x71km1v37 on September 12, 2014 at 7:48

Vladimir Putin and the Russian Gas Station will be done in by cheap oil. So will I...

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Permalink Reply by William Howard Pritchartt on September 17, 2014 at 1:45

The phrase "commencement of drilling operations" is when the bulldozer drops the blade and starts moving dirt for the drilling location.  I remember an operator paid approx. $200,000.00+- to top-lease Amoco at Millbrook field (Wilkinson Co., MS) as he had knowledge the well Amoco drilled to test the Cotton Valley at a depth of 25,000' was not a success but the log showed pay in the Tuscaloosa  "A" sand.

The day just before the lease was to expire heavy equipment arrived and moved soil and other materials which legally held the lease.  Never pay for a top-lease until after the base lease has expired and better yet a release is of record as notice to the public the former lessee has no claim whatsoever after the date it did expire.  Lester Duckworth had obtained a farm out from Amoco and made the discovery well in Millbrook Field.  He sold out soon after making the discovery and walked away with a cool million and the $200,000.00 was a wound that took a long time to heal for the less fortunate operator.

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Permalink Reply by 1kw6x71km1v37 on September 17, 2014 at 16:44

A little dated, but a good read on the interruption of prescription back in the day:

http://digitalcommons.law.lsu.edu/cgi/viewcontent.cgi?article=1739&...

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Permalink Reply by William Howard Pritchartt on September 17, 2014 at 17:50

Dated yes as am I but I am glad you enjoyed the story I used as an example to the question posted.  It has more to do with the question which is contract law regarding the issue of maintaining a lease (the contract between the parties) by following and honoring the terms and conditions as stated in the lease.  Interruption of prescription is the term used in states such as Louisiana with laws falling under the Napoleonic code which provide for extending a mineral servitude by drilling within the ten years from mineral severance of a property divested by the Vendor where the mineral servitude was created by reservation language contained in the deed transferring title to the Vendee by drilling within the ten year term to a depth sufficient to test a known geological productive zone sufficient to make a bona fide effort to establish production.

Be advised I am just a seasoned Landman and am not an attorney.  However I did stay at a Holiday Inn Express last night.

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Permalink Reply by Dion Warr, CPL on September 19, 2014 at 7:27

Howard:

I totally agree with both of your statements, and your illustration that the response to your post above is off-point (besides being dated well before the Mineral Code, and being informed based on prior law and Acts of 1950).  However, you are aware that you are responding to someone with the handle "cheap shot", right?

It does shed light on a distinct point, however, that many owners become caught up in the confusion between which actions which may maintain a mineral servitude, which actions may maintain a mineral royalty, and which actions which may maintain a mineral lease, and how the specific facts of a situation may result in maintenance of one or more of these, but not the other(s).  This can become a very complex issue when dealing with lands in Louisiana, and it is the reason that one should seek out professional representation when dealing with leasing and lease negotiations, and an experienced oil and gas attorney in matters of mineral law.

Professional landmen don't practice law, but we know what we know, and don't have to practice law to engage in our profession.  Mineral law attorneys have graduated from law school, have passed and are admitted to the state bar, and have specialized knowledge in their area of expertise, in addition to being a licensed practicing attorney.  Neither one has googled their way through the mineral law library to become an expert.

IANAL.  Further, Landman sayeth not.

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Permalink Reply by Jesse Joyner on September 19, 2014 at 10:39

Yet some landmen are also lawyers (or are in the process of studying to become a practicing attorney), and a few of them offer their advice on GHS, with licenses to practice in Louisiana (and have passed the bar in both La. and/or MS and/or TX). 

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Permalink Reply by Dion Warr, CPL on September 19, 2014 at 12:09

Jesse:

You are correct, however, one cannot expect landmen or lawyers that may have a conflict of interest (actual or possible) to comment on any specific area in which they may have work or have worked.  Whether fortunate or not, I did not work within the Haynesville Shale area in a landowner-direct work capacity (leasing, title, acquisition) during the large-scale activity ca. 2008, so it afforded me an ability to comment fairly broadly on GHS.  On issues of a more general nature, I do not have issue making comments from an ethical standpoint.

I generally do not have an issue making a statement of opinion in areas in which I have work if asked - however, I must give defer to my past clients or present clients re: ethical consideration as to my working relationship, and neither will I intentionally mislead or deceive a landowner to their detriment or for my (or my client's) potential gain, nor represent my advice as impartial if there is a work relationship involved, without being able to disclose same.  To that end, there have been some issues that I have sought clearance from clients to deal with folks directly on these types of questions, and identified myself as working for a particular client on a particular job prior to commencing the discussion.  That is typically done offsite or by private message - per Keith's rules on solicitation and communication on site.

The other problem, as I see it, is that at certain times throughout the history of GHS, members who have been involved with the oil and gas industry (landmen, geologists, etc.) have been called out, questioned, and harassed for the fact they are involved with the industry.  Some of it was probably called for, to the extent that certain members may have been simply trying to persuade landowners to "get with the program" as they were to gain materially or professionally from steering landowners with advice designed to assist them in capturing leasehold.  Others were painted with the same broad brush for trying to convey information that was correct but was ascribed to being offered with some sort of conspiratorial motive, which caused enough frustration on the part of the member that they left GHS rather than deal with the aggravation.  In the latter cases, "shooting the messenger" just ensures that after having shot all the messengers, one just stops getting messages at all.

So to some degree, what we are left with as a community are those industry members that (1) do not deal primarily in leasehold and operations-related landwork, or do not do so within certain areas of coverage within GHS, (2) members that are interested in providing selective assistance, particularly general topics, or (3) other positions within the industry which have no bearing on whether landowner members hold them in high regard or not.  As to attorneys, they have a higher standard of ethical practice in the regard of offering legal advice in situations where they may not have all the facts, and may be held responsible for providing possibly erroneous information construed as legal opinion or legal advice to the detriment of those who relied upon the advice and the fact that the member is an attorney.

The fact is, I'm not practicing law, I cannot practice law, more than happy to tell you that I cannot provide legal advice (IANAL) and that when dealing with legal questions, state the same, usually closely followed with "you need a lawyer" or similar.  When working for a client (landowner or company), I work as a consultant, at their specific direction, and my comments or opinion or solely based upon my experience as an independent petroleum landman working for over 18 years.  I have specific knowledge concerning oil and gas leasing, negotiations, abstracting, title curative, mineral and production history and the effect on surface and mineral title, and "other things that landmen historically do" as recognized in jurisprudence of the State of Louisiana and other states.  When I get far enough out on that limb that I hear begin to crack, I generally retrace slowly and state "you should consider talking to a competent oil and gas attorney".

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Permalink Reply by William Howard Pritchartt on September 19, 2014 at 13:43

Prescription can be a double edge sword.  In a region being relatively wildcat in nature with less drilling activity past or present one feels comfortable running title back ten years to determine the current mineral ownership especially if the prospect area is rural and tracts being larger than in populated areas.  The closer one examines title with extensive drilling with production being established long ago with many wells still productive and plenty of recent dry holes as well in urban areas you better do your homework as your head may spin off by the time the Clerk of Court land records as you will need to check all records against the records of the drilling and production records and have all the data needed to determine proper mineral ownership of each tract or city lot and curse the laws of prescription as owning minerals in perpetuity would eliminate the burdens faced when the original intent was to simplify record mineral title and being fair for the current owner of the surface and has instead created a monster.

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Permalink Reply by Two Dogs, Pirate on September 19, 2014 at 14:09

I always put my title run back to a solid deed before 1921 before I give the go ahead to pay the bonus and record the lease.

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Permalink Reply by William Howard Pritchartt on September 19, 2014 at 15:40

Long time no see 2 Dogs fckng!  How have you been and do you see my old buddy Joe McGinty these days?  You knew me by another name and we met on the financial posts section for all the owners of Anadarko stock.  When we bumped into each other again was on Callon Petroleum's posting board. I used an alias and never revealed my identity as I was working for Anadarko and we worried about the longevity of the project as it was company notice of service no longer required was date of termination.  However when introducing myself as the beneficiary of a several thousand shares that had been in a bank safety deposit box I wondered if anyone could tell me the value per share as well as any increase in value or decline in order to keep or sell.  Upper management advised strongly to keep as they were just beginning to develop what would be the largest deposit of methane gas onshore being Vernon Field in Jackson Parish with full details of past success and development long term plans and eased all our worries as I stayed at the Best Western for 5 years Monday thru Friday with tailgate on hump day and while having our complimentary breakfast on the morning of 9/11 we watched in disbelief the plane #2 fly into the World Trade Center.

I used a play on words of the leader o a foreign nation to be I our nations worst threat at that time which was B.S. and was disinformation to achieve ulterior objectives resulting in the death of the leader which was the beginning of American casualties that are the cost paid those sent to die in a battle on foreign soil by old men of power.  I wonder if some day after making a decision to take military action was handed a photo of his most loved grandson via e-mail as a surprise and to show he support and make his grandfather proud as he was now squad leader in special forces in full combat gear and making the jump in the first wave of attack?

Guess my old handle I chose!  Not hard with such a long hint. 

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Permalink Reply by Two Dogs, Pirate on September 20, 2014 at 5:02

Larry Marchand once told me that he stayed in the same motel room in Shreveport for 13 years while working for Oxy. He said the owners got to where they would let him leave his stuff in the room and would not rent it out on the weekends.

Permalink Reply by William Howard Pritchartt on September 19, 2014 at 13:08

I realize the poster uses "Cheap Shot" as his pen name rather than reveal his or her true identity.  I don't understand how any name used bears relevance of the "basics" I gave to explain that interruption of prescription was not relevant to the question as it would be involving an entirely different issue which I explained by the basic intent of prescription laws as there was no need or reason to go into all the complexities involving production units, geologic units, mineral servitude with partial acreage contained in a drilling unit resulting as nonproductive when drilled from lands other than those of the servitude, etc.

I have practiced law in Natchez with no license but only out of necessity in representing myself as the local attorneys have a license but no practice due to lack of knowledge of the law.

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