landowner

Unleased mineral pitfall

This link will take you to a article about a recent (feb 1, Walls v Arkansas Oil and Gas Commisson) arkansas court of appeals decision concerning the amount of lease money that can be paid to an intergrated section, the section this concerns is next to me. The short version is, the oil and gas commision is under no obligation to order you to be paid the "highest" amount that any land in your section was leased for. This is basically for a mineral intrest owner who waits to be intergrated and then waits his 15 days after the order and does not lease to anyone. Be careful trying to be the "the last man standing" trying to get the most for your lease or have so many restrictions they wont lease it, time does run out and your not garenteed the best deal if it does.

 

http://www.leagle.com/xmlResult.aspx?page=1&xmldoc=In%20ARCO%20...

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Replies to This Discussion


landownerPermalink Reply by Polly Ann Foote on February 19, 2012 at 5:01
interesting and disturbing. The only offer that was appealing was the one offered to the Arkansas Game and Fish Commission and apparently no individual landowner was given that same offer . The only way for mineral owners to have some influence in negotiating is to join together and control a majority of the mineral interests in a secton - an almost impossible scenario.
Permalink Reply by DrWAVeSport Cd1 on February 19, 2012 at 7:27

FA,

Arkansas and Texas O&G leasing laws are quite different from Louisiana's.  Louisiana's, IMO, are more equitable.

Arkansas, IMO, leans in favor of the Producer side of leasing.  But, all mineral owners need to do their due diligence, including getting good O&G legal advice, before the Landman Comes Calling.  Again, IMHO. 

 


landownerPermalink Reply by Ed on February 19, 2012 at 7:44

The Arkansas Oil and Gas Commission is run by local oil men. Always has been. I not saying they are not honest but still. Think about it.

Permalink Reply by DrWAVeSport Cd1 on February 19, 2012 at 8:43

Ed,

This AR "Commission" and its Commissioners need to be investigated, IMO.


Oil & Gas ProPermalink Reply by The_Baron on February 20, 2012 at 4:03

I think it is important to realize the reasons for the force integration laws.. and I emphatically stress, they are laws not just rules.

 

In Ar it is so common to see extremly fragmented mineral interests that leasing an entire unit is often impossible. As in LA, prices paid to state agencies is not really representative of the going rate.

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