Replies to This Discussion

Permalink Reply by SBossierGuy on August 27, 2008 at 9:06

You'll get 100% of your share of revenues after the wells are profitable (that may take months or a few years - depending on the number of wells drilled). After the wells are profitable, you get your share of revenues after expenses. The expenses that they can charge you for are listed in Louisiana RS 30:10. The bottom line is that you stand to make money if the vast majority of your section signs a lease and you are one of the few holdouts. If there are many holdouts, the O&G company could choose to drill in another section, which would be the worst case scenario for you.

This is all my opinion, of course. In the end, you'll need to make your own call. A good place to start:
Forced Pooling Topics

Permalink Reply by Likeme on September 13, 2008 at 3:39

Listen to your neighbors in River Bend. Sign the current Petrohawk offer. It is good. We live in Golden Meadows section 24 and we have the same offer. We are signing our letter of intent. I believe the city and parish will lease their part of section 24 (you are in section 24) in October. Then, Petrohawk will be able to apply to the state for a force pool. Please talk to Ken Prim, who is with you neighborhood association. He will explain it all to you.

Permalink Reply by doorsclosing on September 15, 2008 at 13:59

(do the math)

The following Resolution offered and adopted:
Resolution No. 14 Of 2008
A RESOLUTION AUTHORIZING THE MAYOR TO REQUEST THE LOUISIANA DEPARTMENT OF NATURAL RESOURCES, OFFICE OF THE STATE MINERAL BOARD, TO LEASE CERTAIN MINERAL INTERESTS OWNED BY THE CITY OF BOSSIER CITY AND TO OTHERWISE PROVIDE FOR RESPECT THERETO.
________________________________________________________________________
WHEREAS, the City of Bossier City may own mineral rights underlying the property described in Attachment “A” (collectively “the property”); and
WHEREAS, City desires to lease its interest in the property for oil, gas and other minerals subject to conditions contained herein; and
WHEREAS, pursuant to LSA-R.S. 30:151 et seq., the City may, by resolution, direct the State Mineral Board to lease the City’s interest in the property for such purposes; and
WHEREAS, City desires to avail itself of the provisions of the aforesaid statutes and by this resolution requests the Louisiana Department of Natural Resources, Office of the State Mineral Board to lease the property for oil, gas and other minerals subject to conditions contained herein and in accordance with applicable provisions of law.
WHEREAS, significant mineral leasing activity is occurring in the City of Bossier; and
WHEREAS, the City of Bossier City does not have the knowledge or resources available to determine if it owns the mineral rights and the City of Bossier City will rely on the expertise and experience of the lessee in determining ownership; and WHEREAS, it is expressly agreed that any lease granted by the City of Bossier City and accepted by lessee is without any warranty of title and without any recourse against the City of Bossier City whatsoever, either express or implied, and it is expressly agreed that the City of Bossier City shall not be required to return any payments received or be otherwise responsible to lessee therefore; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Bossier City, Louisiana, in due, regular and legal session convened, that the Mayor is hereby authorized to request the Louisiana Department of Natural Resources, Office of the State Mineral Board, to lease certain mineral interests owned by the City of Bossier City and to execute all documents relative to same.
BE IT FURTHER RESOLVED, that the Louisiana Department of Natural Resources, Office of the State Mineral Board be and it is hereby requested and authorized to seek public bids for oil, gas and mineral leases covering the property described in Attachment “A” attached hereto and made a part hereof.
BE IT FURTHER RESOLVED, that any such lease shall contain a No Surface Operations provision to read the same or substantially the same as the following language, except when the property description attached hereto shall indicate that such operations are allowed by the City of Bossier City.
“Except as otherwise expressly authorized in writing by Lessor, Lessee, its successors or assigns, may produce oil, gas and other minerals from the leased premises by drilling from a surface location on other lands. Notwithstanding any other provision of this lease to the contrary, Lessee, its successors or assigns shall not use the surface of the Lessor’s property for drilling or any other operation(s) without prior written consent of Lessor, which consent may be withheld at Lessor’s discretion.”
BE IT FURTHER RESOLVED that any such lease shall contain a horizontal Pugh clause to read the same or substantially the same as the following:
“Notwithstanding anything to the contrary herein contained, at the end of the primary term or any extension thereof by operations, if the Commissioner of Conservation of the State of Louisiana establishes a drilling unit which includes a part of the land herein leased, the production of oil, gas and other minerals from such unit shall maintain this lease in full force and effect only as to such portions of the leased land embraced in such pooled unit, and this lease shall expire as to that part of the land herein leased not included in such unit, and Lessee, its successors and assigns agree to relinquish by formal instrument any portion of the leased land not included in a unit created by the Commissioner of Conservation while this lease is in effect.”
BE IT FURTHER RESOLVED that any such lease shall contain a vertical Pugh clause to read the same or substantially the same as the following:
“Upon the expiration of the primary term hereof or any extension thereof by operations, this lease shall automatically terminate and be of no further force or effect except as to all that part of the leased premises then included within the geographical boundaries of a producing unit duly established by governmental agency or authority having jurisdiction, from the surface of the earth to a depth of 100 feet below the deepest depth from which any well commenced during the primary term hereof on the leased premises or on lands pooled therewith is completed and from which there is production in paying quantities, such determination to be made on a unit by unit basis. In the absence of units so established, this lease shall terminate except as to 40 acres around each producing oil well and 160 acres around each producing or shut-in gas well located on the leased premises, in as near the form of a square as is practicable, from the surface of the earth down to a depth of 100 feet below the deepest depth from which said well or wells are completed and from which there is production in paying quantities, such depth determination to be made on a well by well basis.”
BE IT FURTHER RESOLVED that any such lease contain a minimum royalty provision as follows: Royalty of not less than ¼ or 25%.
BE IT FURTHER RESOLVED that any such lease contain a minimum cash payment upon granting the lease as follows: Cash Payment of not less than $27,500.00 per acre, one-half (1/2) of which shall be considered bonus as full and adequate consideration for every right granted under the lease and not allocated as mere rental for a period, and one-half (1/2) of which is rental for the first year of the lease.
BE IT FURTHER RESOLVED that any such lease contain a minimum rental consideration for years two and three of the lease of not less than a price per acre equal to one half (1/2) of the cash payment described above (the “Rental”). Such Rental clause shall substantially provide that, if drilling operations are not commenced on the leased premises in good faith on or before one year from the date of the lease, the lease shall expire and terminate unless Lessee on or before the expiration of that period shall pay or tender to the Lessor the Rental, which shall extend for twelve (12) months the time within which drilling operations may be commenced. Thereafter, in like manner and upon like payments or tenders, all of Lessee’s rigs under the lease may be maintained without actual drilling operations a successive period of twelve (12) months during the primary term. Payment or tender of rental may be made by check of Lessee made payable to the order of Lessor and delivered or mailed by registered mail to the Lessor on or before the rental paying date.
BE IT FURTHER RESOLVED that any such lease contain a maximum term provision as follows: Primary term of lease shall not exceed three (3) years.
BE IT FURTHER RESOLVED that such lease shall contain a provision expressly stating that any lease granted by the City of Bossier City and accepted by Lessee shall be without warranty of title and without recourse against the City, whether expressed or implied, and further, that City shall not be required to return any payments received or be otherwise responsible to Lessee therefore.
BE IT FURTHER RESOLVED that any error in any legal description contained in Attachment “A” which may be discovered by the State Mineral Board or its staff during its review of the City’s application which are subsequently corrected by the City of Bossier City, provided such irregularities to do not materially change the property being herein authorized for lease, shall not affect any authorization granted or conveyed herein and the State Mineral Board is hereby authorized to advertise and subsequently lease the said property as correctly described.
BE IT FURTHER RESOLVED that the application made to the State Mineral Board to nominate the property described in Attachment “A” for leasing is hereby ratified and approved.
BE IT FURTHER RESOLVED that the City authorizes the grouping of City property into such tracts as is determined best for the purpose of taking bids for mineral leases on City of Bossier City property.
BE IT FURTHER RESOLVED that the City directs that no partial bids shall be permitted and all bids submitted shall be for the entire nomination including all tracts or parcels included therein.
BE IT FURTHER RESOLVED that if any provisions or items of this resolution or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications which can be given effect without the invalid provisions, items or applications, and to this end, the provisions of this resolution are hereby declared severable.
BE IT FURTHER RESOLVED that all resolutions or parts thereof in conflict hereby are hereby repealed.
BE IT FURTHER RESOLVED that this resolution shall be effective immediately.
The above and foregoing Resolution was read in full at open and legal session convened, was on motion of Mr. David Jones, and seconded by Mr. Don Williams, and adopted on the 25th, day of July, 2008, by the following vote:
AYES: Mr. Larkin, Mr. Montgomery, Jr., Mr. Irwin, Mr. Williams, Mr. Jones and Dr. Rogers
NAYS: none
ABSENT: Mr. Darby
ABSTAIN: none
____________________________
Scott Irwin, President
___________________________
Helen Thornton, City Clerk
LEGAL DESCRIPTIONS OF PROPERTIES TO BE OFFERED FOR LEASE
BY THE CITY OF BOSSIER CITY
Nomination #6
Those certain tracts or parcels of land, excluding the beds and bottoms of all navigable waters, belonging to and not presently under mineral lease from the City of Bossier City, Bossier Parish, Louisiana on October 8, 2008, consisting of the following tracts and only the following tracts situated in Township 17 North, Range 12 West, Sections 19, 30, Township 17 North, Range 13 West, Sections 13, 23, and 24, being more fully described as follows:
1) All of the dedicated roads, streets, and alleys located within Section 19, Township 17 North, Range 12 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Bayou Drive, Bluebell Drive, Bluebonnett Drive, Catherine Court, Catherine Drive, Claire Court, Daisy Circle, E Meadow Drive, Goldcrest Drive, Golden Meadows Drive, Goldenglow Lane, Hollyhock Lane, Honeysuckle Lane, James Scott Circle, Jennifer Lane, Kristen Avenue, Lantana Lane, Lauri Lane, Lucerne Lane, Mary Drive, Meadowsweet Circle, Mulberry Drive, Pampus Lane, Primrose Lane, Sage Drive, Shasta Drive, Sunflower Circle, Susanna Drive; in all estimated to contain 56.26 acres, more or less.
2) All of the dedicated roads, streets, alleys, and other lands located within Section 30, Township 17 North, Range 12 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Bayou Drive, Hope Street, Sligo Road; in all estimated to contain 12.54 acres, more or less.
3) All of the dedicated roads, streets, and alleys located within Section 13, Township 17 North, Range 13 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Alfred Lane, Antietam Drive, Ashley Wilkes Lane, Aster Street, Azalea Street, Beauregard Place, Carnation Street, Chancellorsville Court, Cold Harbor Court, Daffodil Street, Fair Oaks Street, Falling Water Circle, Fletcher Drive, Gardenia Street, Gen. Ashley Drive, Gen. Bragg Drive, Gen. Ewell Drive, Gen. Forrest Drive, Gen. Jackson Place, Gen. McNair, Gen. Mouton Drive, Gen. Polk Drive, Gen. Rusk Drive, Gen. Scott Place, Gen. Sterling Price Place, Gen. Taylor Place, Gen. York, Gladiolus Street, Hancock Street, Hassell Circle, Hassell Drive, Heritage Drive, Jeb Stuart Place, Jonquil Street, Kirby Smith Drive, Lily Street, Longstreet Place, Melissa Lane, Nottoway Place, Robert E. Lee Boulevard, Rossie Lee Drive, S Jonquil Street, Sunflower Road, Violet Avenue, Whitefield Lane, Wild Iris, Wild Rose; in all estimated to contain 98.87 acres, more or less.
4) All of the dedicated roads, streets, alleys, and other lands located within Section 23, Township 17 North, Range 13 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Afton Circle, Afton Place, Belle Chasse Drive, Chopin Drive, Dunleith Place, Feliciana Drive, Kenilworth Drive, Magnolia Ridge, Oakland Place, Plantation Trace, Rosemont Place, Springfield Circle, Springfield Place, Sunflower Boulevard, Sunflower Road, Vermillion Place, Welham Trace, Whitehall Drive; in all estimated to contain 24.58 acres, more or less.
5) All of the dedicated roads, streets, alleys, and other lands located within Section 24, Township 17 North, Range 13 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Anandale Drive, Andy Circle, Bayou Drive, Crian Circle, E Oxbow Loop, Foxglove Drive, Golden Meadows Drive, Goldenrod Circle, Brayson Boulevard, Grayson Circle, Golden Meadows Drive, Grayson Boulevard, Hollyhock Lane, Honeysuckle Lane, Iris Circle, Jeanette Street, Lauri Lane, Lotus Circle, Magnolia Ridge, Mulberry Drive, Nottoway Place, Pampus Lane, Primrose Lane, Radbrook Circle, Radbrook Drive, River Bend Drive, Sage Drive, Shasta Drive, Sunflower Road, Susanna Drive, Tioga Court, Tributary Court, W Oxbow Circle, W Oxbow Loop; in all estimated to contain 46.24 acres, more or less.
Bossier Parish Tax Assessment Nbr: 136117 0.10 ACRE - TRACT A, SOUTHERN GARDENS #4
Bossier Parish Tax Assessment Nbr: 167714 0.04 ACRE - LOT 501, CYPRESS PLACE UNIT 1
Bossier Parish Tax Assessment Nbr: 167746 0.13 ACRE - LOT 503 CYPRESS PLACE UNIT 2
Bossier Parish Tax Assessment Nbr: 167747 0.47 ACRE - LOT 504 CYPRESS PLACE UNIT 2
Bossier Parish Tax Assessment Nbr: 148737 0.11 ACRE - LOT 87, SOUTHERN GARDENS #2
Bossier Parish Tax Assessment Nbr: 148763 0.89 ACRE - BEGIN AT NE COR OF SEC 24, THENCE N 89 DEG 05 MIN 22 SEC W 2615.97 FT TO PT OF BEGIN, THENCE CONTINUE N 89 DEG 05 MIN 22 SEC W 160.66 FT TO E R/W OF L & A R/R, THENCE S 32 DEG 39 MIN E ALONG E R/W 380 FT, THENCE N 27 DEG 21 MIN E 160.05 FT, THENCE S 43 DEG 57 MIN 35 SEC E 142.25 FT, THENCE N 14 DEG 44 MIN 09 SEC E 23.41 FT, THENCE N 43 DEG 57 MIN 35 SEC W 221.55 FT, THENCE N 35 DEG 45 MIN 51 SEC W 117.65 FT TO PT OF BEGIN, SEC 24 T 17 R 13
Bossier Parish Tax Assessment Nbr: 148779 0.03 ACRE - BEGIN AT SW COR OF NE, THENCE N ALONG THE W LINE OF NE 1761.73 FT TO PT OF BEGIN, CONTINUE N ALONG THE W LINE OF NE 347.77 FT TO SW R/W OF HWY 71, THENCE IN A SELY DIRECTION ALONG SW R/W OF HWY 71, 290 FT, THENCE S 56 DEG 55 MIN W 191.95 FT TO PT OF BEGIN, LESS TRACT DES IN VOL. 751-113, SEC 24 T 17 R 13
Bossier Parish Tax Assessment Nbr: 148797 5.70 ACRES - FROM COMMON COR. OF SECS. 13, 14, 23, 24, RUN N. 0 DEG. 07 MIN. E. ALONG LINE COMMON TO SECS. 13 & 14, 2088.55 FT. TO PT. OF BEGIN., THENCE S. 66 DEG. 21 MIN. 50 SEC. W. 224.08 FT., THENCE N. 89 DEG. 29 MIN. 20 SEC. W. 273.40 FT., THENCE S. 0 DEG. 22 MIN. 55 SEC. W. 202.99 FT. TO INTERSECTION WITH NLY R/W OF HWY. 511, SAID PT. BEING ON A CURVE TO THE LEFT HAVING THE FOLLOWING DATA: DELTA = 22 DEG. 40 MIN. 12 SEC., RADIUS = 2157.38 FT., THENCE NELY ALONG SAID CURVE, 853.61 FT., THENCE N. 57 DEG. 43 MIN. 13 SEC. E. ALONG SAID R/W 48.29 FT., THENCE N. 66 DEG. 39 MIN. 00 SEC. E. ALONG R/W 191.57 FT., THENCE N. 33 DEG. 39 MIN. 55 SEC. W. 185.75 FT., THENCE N. 66 DEG. 11 MIN. 55 SEC. E. 303.94 FT. TO PT. OF INTERSECTION WITH WLY R/W OF HWY. 71,THENCE N. 32 DEG. 50 MIN. 05 SEC. W. ALONG R/W 51.13 FT., THENCE S. 67 DEG. 34 MIN. 12 SEC. W. 340.33 FT., THENCE S. 66 DEG. 21 MIN. 50 SEC. W. 437.92 FT. TO PT. OF BEGIN., LESS TRACT DES. IN VOL. 650-618 AND LESS BROWN OFFICE PARK SUBDV., ALSO FROM COMMON COR. OF SECS. 13, 14, 23, 24, RUN N. 0 DEG. 07 MIN. E. ALONG LINE COMMON TO SECS. 13 & 14, 2088.55 FT., THENCE S. 66 DEG. 21 MIN. 50 SEC. W. 224.08 FT., THENCE N. 89 DEG. 29 MIN. 20 SEC. W. 1548.40 FT. TO PT. OF BEGIN., CONTINUE N. 89 DEG. 29 MIN. 20 SEC. W. 2017.39 FT., THENCE S. 1 DEG. 09 MIN. 40 SEC. E. 195.87 FT. TO PT. OF INTERSECTION WITH NLY R/W OF HWY. 511, THENCE S. 89 DEG. 37 MIN. 05 SEC. E. ALONG R/W 744.59 FT., THENCE N. 68 DEG. 34 MIN. 50 SEC. E. ALONG R/W 215.41 FT., THENCE S. 89 DEG. 37 MIN. 05 SEC. E. ALONG SAID R/W 82.51 FT., THENCE S. 82 DEG. 59 MIN. 12 SEC. E. ALONG SAID R/W 822.99 FT., THENCE S. 89 DEG. 37 MIN. 05 SEC. E. ALONG R/W 167.52 FT., THENCE N. 0 DEG. 22 MIN. 55 SEC. E. 206.29 FT. TO PT. OF BEGIN., LESS TRACTS DES. IN VOL. 666-589, 962-448, SUNFLOWER PLANTATION BEING IN SECS. 13,14,23,24, T. 17, R. 13. /TR. 1-B10A/
Acreage for this nomination is 253.43 acres, more or less, consisting of the above referenced tracts.

Nomination #4 (partial text)
Those certain tracts or parcels of land, excluding the beds and bottoms of all navigable waters, belonging to and not presently under mineral lease from the City of Bossier City, Bossier Parish, Louisiana on October 8, 2008, consisting of the following tracts and only the following tracts situated in Township 18 North, Range 13 West, Sections 23, 24, 26, 35, and Township 18 North, Range 12 West, Section 19, being more fully described as follows:
1) All of the dedicated roads, streets, and alleys located within Section 19, Township 18 North, Range 12 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Cavalier Drive, Industrial Circle, Industrial Drive Extension; in all estimated to contain 15.28 acres, more or less.
2) All of the dedicated roads, streets, and alleys located within Section 23, Township 18 North, Range 13 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Ann Street, Ann Scott Circle, Becky Street, Birdwell Lane, Brandon Spur, Canyon Court, Dee Dee Street, Donnie Avenue, Driftwood Drive, Durham Drive, Eastside Drive, Elsa Jane Street, Givens Street, Industrial Drive,Jeter Street, Lampkin Street, Madden Court, Mary Ellen Circle, Meadow Lane, Meadowview Drive, Norris Drive, O'Keefe Street, Old Shed Road, Olwen Drive, Pearl Drive, Regina Street, Rex Street, Shed Road, Sheryl Street, Shirley Lane, Stierwalt Street, Sullivan Street, Swan Lake Road, Teekell Street, Voss Drive, Webber Circle; in all estimated to contain 87.37 acres, more or less.
3) All of the dedicated roads, streets, and alleys located within Section 24, Township 18 North, Range 13 West, Bossier Parish, Louisiana, including but not limited to all or portions of the following roads, streets or highways: Austin Lane, Birdwell Lane, Brandon Boulevard, Brandon Spur, Bruce Street, Camellia Lane, Dot Avenue, Edge Brook, Garrett Drive, Glen Harbor, Industrial Drive Extension, Karen Drive, Kennon Lane, Kilpatrick Drive, O'Keefe Street, San Antone Drive, Sheryl Street, Shirley Lane, Sullivan Street, Swan Lake Road, Topps Trail, Weed Street, Whitehurst Street, Wind Haven; in all estimated to contain 42.29 acres, more or less.

Permalink Reply by Whatever on September 16, 2008 at 12:53

Can you elaborate on "do the math"? What exactly are you trying to say? From what I can tell the city wants to lease its interests in land that it owns and stands to make a nice sum in bonus money. If the O&G wants 90% of a section in order to drill(this is what I've heard and I don't know if that is entirely true), and the city owns so much of that section in streets, parks, sidewalks, etc., unless the city leases their part - 90% of the section will not be met? I'm trying to learn all I can. Thanks

Permalink Reply by gary on September 15, 2008 at 7:25

Force Pooling is how you get your 100 % royalty.But you will have to wait until all the wells drilled in your section are paid for ( all wells ). Now I have freinds in the buisiness that say they will actually be paid for in 3-6 Months. But the land men that are trying to get you to sign say that the O&G,s will say that the well is never really paid off . So what do you do? We are in Goldenmeadows sect.24 and did not sign the petrohawk offer.

Permalink Reply by Whatever on September 16, 2008 at 13:30

I'm glad you responded to us. It's good to know about the other "non-signers". We are not trying to get rich and "hold out" while the rest of the neighborhood hates us for not joining their "signing group". We decided to step back from this whole deal when greed seemed to take over. Our portion of an acre is about 1/4. After cutting the bonus down to 1/4 and then taking taxes out of that it just doesn't turn out to be a whole lot of money. I'm not gonna say we don't care if the O&G drills or not, it's just that if they do and it turns out well then great - if they don't drill just because our 1/4 of an acre didn't sign then we're only out a few thousand dollars bonus money and 1/4 royalties if they produce gas. What bothers me the most is that there has been so much pressure and borderline harassment it is unbelievable! We should have a personal right to choose what we want to do with our home, land, etc. It should be noone else's business what you do or decide. To have a homeowner's association is good so that you have some sort of order, organization, or brotherhood within the neighborhood in order to have a safe, nice place to live and raise a family -- what's bad is when the homeowner's association is the one bullying and harassing so far as to print your name on a list and send it out over the internet to all the other neighbors so that they can harass you some more about leasing your rights to someone! O.K. we don't have the money that the O&Gs have to research, explore, drill and produce gas and they have all the money, equipment, etc. to do all that for us and we are supposed to be just so happy that they are going to give us this mediocre bonus and some small portion of the obvious millions in money they are expected to make on this -- BUT we didn't ask them to come here and drill in our neighborhood anyway! We bought this home and lot and, for all we know, the mineral rights to this lot and if we don't want to lease then that's our right to choose not to. That's how we feel about it.