Why the H*#4@ did I sign a mineral lease?
Being part of a 640 unit is crap for the folks with small acreage. Its all a pyramid scheme. We all joined in this thing together to make money together...at least that's what the feeling WAS. I remember when the first checks were given out, many Shreveport natives boosted the economy for this area by shopping for big ticket items like cars, houses, etc. in hopes of getting more and better checks. But what did Chesapeake do? Send out Div Orders with stupid decimal points in the writings, such as .00003 for example. A lease in the beginning stated that the mineral owners would receive 25% of monies made. The Div Order to be signed states different rhetoric with that decimal crap. When I asked Chesapeake where did they get those numbers from, they answered me back with, "It's something we made up." Mineral owners are treated like the enemy. What if Walmart was in this situation? They own the merchandise, but the only folks who make the real money are everyone except Walmart, (except mineral owners). Doesn't make sense. Try doing the math with screwed up numbers such as .0003 and see what you come up with. A bunch of zeros after a decimal point adds up to horrific under payments made to the mineral owner, the ones who own the product. And where are the guys in my 640 unit who own tons of acres and made nearly a million dollars? would be nice if they shared their profits with us guys making 80 dollars to 500 dollars a year. I signed up because I knew it would benefit those with small acreage as well as those who own large acreage. My neighbors are in shock and most folks are embarrassed that their checks aren't more lucrative after receiving their initial payments of thousands of dollars, now we all get hardly anything. So much for boosting the economy for Shreveport.
Tags: 640, chesapeake, division, law, mineral, order, owners, payments, pyramid, rights, More…
Views: 8932
Replies to This Discussion
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Permalink Reply by Spring Branch,mineral owner on
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MJS, whoever told you that ownership of 1 acre would result in $1,100 to $1,400 a month income was an idiot. Plus, MJS, if something sounds too good to be true, it usually is. Also did they tell you that oil & gas is a depleting asset, which means that every barrel of oil or cubic foot of gas that is produced is not there to produce again? In other words, production declines........in the Haynesville... rather sharply!
There is some future good news, though. The good news is that eventually, more that one well will be drilled in your section. It may not happen in your lifetime, but it will eventually happen!
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Permalink Reply by Ken Marx on -
Well, Lee, looks like you have about 1/5
of an acre (640x0.0003). Is that right?
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Permalink Reply by adubu on
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Lee-- you are perfect example of Obama desire--- Thinks all should" share the wealth"--- Come On Man --- Be happy you got a lease and occasion little check for a little piece of mineral --
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Permalink Reply by Skip Peel - Mineral Consultant on
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I know a number of individuals like Lee here in the Haynesville Shale. Not a one is a Democrat.
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Permalink Reply by Skip Peel - Mineral Consultant on
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No question about their political affiliation, Gale . It's obvious from their lawn art.
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Permalink Reply by adubu on
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Ken---- Lee has only almost 0.08 net acres --- .25X/640= 0.00003 so X= 640x0.00003/.25= 0.0768 net acres ---so if he has 0.0768 a and 25%R then payment decimal of production is calculated .25x 0.0768/ 640 = 0.00003--- if well produces 10 million cfd that's 300 mmcf month at $3.5 $1050000 gross -- lee receives before any deductions 1,050,000 X 0.00003 $31 first month only---after about year may get a check for $15-25 once per year
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Permalink Reply by adubu on
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Lee ---was this a lot your home was build on? About 3600 sq feet lot -- almost 60 by 60 feet lot
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Permalink Reply by Hopeful About Natural Gas on
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adubu - smart math! Has all this arguing been over a house lot???
I suspect we have been trolled. LOL! But, if "Lee" is a real mineral owner then he has gotten a good education in both mathematics and supply and demand.
It's been entertaining reading this thread - I hope everyone has a great 4th of July! Let's shoot off some fireworks (safely, without causing more fires!)
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Permalink Reply by Spring Branch,mineral owner on
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In one post Lee had three zeros after the decimal. In another post, he had four zeros after the decimal...........so who the heck knows?
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Permalink Reply by Bobi Carr ("parker") on
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Yeah...I gave up too.
Dion even offered to dig into it for him.
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Permalink Reply by Two Dogs, Pirate on
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Jay, I just hope that Lee doesn't get swallowed by one of the sink holes that he seems to be so afraid of.
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