Replies to This Discussion

Permalink Reply by Linda Whatley on January 9, 2011 at 14:32

Guess I was one of the lucky ones.  I was able to get out of a very old lease without having to go to court.  I just made an agreement with the leaseholder to let him keep the shallow drilling rights if he'd release me from the deep drilling rights.  He was a small operator, so it worked out best for both of us.      

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Permalink Reply by John L on January 10, 2011 at 3:08

Our land was held by shallow production and the operator made a fortune selling our deep rights to Chesapeake.  It doesn't seem right that we did not get a chance to negotiate a new lease with CHK.  We are waiting on our first check and are prepared to be shocked at the low price they are paying the RO. 

 

I would like to know if a CV well that was unitized for a small acreage, 80 or 160 acres, would hbp all of the minerals in a 640 acre section?

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Permalink Reply by Skip Peel - Mineral Consultant on January 10, 2011 at 3:35

It depends on the language in the lease.  Even standard forms have included a simple horizontal Pugh or pooling clauses for years now.  That effectively releases whatever acreage is not included in a unit and due royalty.  Lacking that clause any contiguous acreage could possibly be held by production on any portion even if a portion were outside the boundary of the drilling and production unit.  With a clause, one or more unit wells only hold minerals under lease within that unit whatever size it is.

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Permalink Reply by kittycatmama on January 10, 2011 at 3:46

Something that really disturbs me is the people who came in here leasing prior to and after Haynesville discovery. They are not governed by any state or federal regulations. I know that doesn't make a person ethical, but some code of rules for disclosure should be put in force. For example, homeowners have to do disclosures by state laws if there are defects, Realtors are bound by disclosing who they represent.

Gas companies who knew about the Haynesville and did not disclose it were able to lease properties for $300 an ac. Companies leased land and bound several sections without land owners even realizing they were tying up all their land in one lease.

I had a guy wanting to lease from us. He had been a vacuum cleaner salesman the week before becoming a landman. He was just sent out to get as many people on the dotted line as he could--no training at all except high pressure sales. This is why so many people ended up hbp.Yes, they could have consulted an attoryney, but your average person trusted the landman & not everyone could afford an attorney

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Permalink Reply by P.G. on January 10, 2011 at 4:03

One would think reputable landmen who make their life's living at this would welcome some kind of standardized rules to keep those fly by night folks (con-artists) out of the business, huh?

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Permalink Reply by Skip Peel - Mineral Consultant on January 10, 2011 at 4:05

It is a misconception that many companies were aware of and therefore actively leasing for the Haynesville Shale prior to the spring of '08.  Encana was exploring the shale as early as 2006 and Chesapeake as early as 2007.  SWEPI was aware of the potential play through its partnership with Encana. Many companies that ended up as significant shale players were leasing for Cotton Valley prospects and the next big play on the horizon was drilling horizontal CV wells.  It just so happened that a good bit of the CV lease acreage turned out to be prospective for the shale.  Even those companies that did make lease offers based on the shale didn't inform their field landmen of the particulars.  Many knew of the shale only after the public announcements were made.  I agree that a lot of untrained personnel were pressed into service in the race to lease and many were poorly supervised.   Many mineral owners were inexperienced and failed to perform any due diligence.  GoHaynesvilleShale was, and is IMO, the best means to spread the word and educate the public.  Hopefully the lessons learned in the Haynesville Play will inform the actions of generations to come when dealing with the management of their minerals.

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Permalink Reply by P.G. on January 10, 2011 at 4:17

Too bad GoHaynesvilleShale wasn't around when so many landmen were rushing to hand folks those short end of the stick deals, huh?

Permalink Reply by Linda Whatley on January 10, 2011 at 4:42

That is why we all need to make sure GHS continues......  make your donations today!

Permalink Reply by robert minton on January 22, 2013 at 14:48

Who should be guardian, for those who do not have sufficient knowledge about a subject? First, admit you don't know. Then, ask advice from someone who does know. Lastly, avoid those who pretend to know but who haven't a clue! And truly lastly, blame yourself for your actions-not someone else.

 

 

Permalink Reply by Skip Peel - Mineral Consultant on January 22, 2013 at 3:10

After prevailing in the long protracted battle over which court would hear the suit by Kassi Fitzgerald Et Al (Rambin Farm Home Owners Group) and with a hearing date imminent, there has been another set back.  Both DeSoto Parish district judges have recused themselves and declined to preside over the trial.  An alternate judge will have to be appointed to hear the case.  How long that may take I do not know. 

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Permalink Reply by kittycatmama on January 22, 2013 at 3:47

Skip thanks for that update.  If Kassi's group wins this case, won't it set a precedence for other hbp units? This case is really BIG for landowners' rights.

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Permalink Reply by Skip Peel - Mineral Consultant on January 22, 2013 at 4:06

Unfortunately, no.  A verdict favoring Kassi will have limited impact on those outside her group who have similar situations.  It'll continue to be a case by case battle over the details of each suit.  EXXON will probably feel that the cost of litigating will be a reasonable investment in dissuading other potential like minded plaintiffs even if Kassi eventually prevails.

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