Are there any unleased owners in Desoto receiveing royalty checks. If so, does it seem to be better to remain or leased or not. Also what was procedure in payment as far as expenses are concerned (ie did you have to pay your share of the well cost before receiving checks, and if so how long did the take.)
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Thank you all for such helpful information.
The property is located in LA.
Dr. Wave, how can I locate the UMO Basics information?
TIA
LN,
You can search by GHS "Discussion" menu item and type UMO Basics...or you can search by GHS "Member Name" and type in Caliente. This document should be both places.
If you have any difficulty finding, just let us know.
Have a great GHS ~ TGIF.
As a UMO, how many acres should be owned in order to remain a UMO or enter into a Lease Agreement?
Since ng prices are up, what is the average acre being leased for in DeSoto? Also, if ng prices continue to rise, will that continue to be a benefit to the landowners?
Thanx.
LN,
No minimum acreage and no maximum. Better to own 100% of the mineral estate no matter what the land size.
However...that being said... Bigger is Better. In a 640 acre unit, the more land you own the mineral on, the more leverage UMO and Lessors have. Those with a few acres or less...No leverage. IMO
I live in Caddo, so I don't have a clue as to leasing prices in DeSoto. But DeSoto is at the heart of the HS, so I would believe that leasing land in DeSoto would bring a higher $/acre than most other places.
Nat Gas prices will go up. Just When will they be high enough for mineral owners to see some "real" mailbox money...That is the question. The demand side of nat gas has got to go up too...or it is going to take a lot longer for for nat gas to reach some equilibrium in pricing.
Mother nature will need to help too. Much colder Fall & Winter. Much warmer Spring & Fall. Those kinds of "degree days" help nat gas prices rise. (Just the opposite weather conditions we all enjoy help nat gas prices go up.)
However, nat gas at $2 or $3 or $4 is the only way U.S. will make policy changes and get U.S. consumers to embrace new USES for this cleaner burning, cheaper, abundant Energy Blessing.
For U.S. not to move toward Nat Gas as the National Energy Source of Choice is complete folly and foolish to the point of idiotness.
But I digress...
I know individuals who own .8 acres who are UMOs. And, I know individuals who own 400+ acres who are leased. It's really the leverage one has at the time the leasing/not leasing decison making time presents itself. It is strictly the mineral owners choice...
No minimum required. LOL
^^^^^^^
Wow, you are a wealth of information.
Got more questions-Once a well starts producing and the O&G company posts the natural gas production on Sonris, does the O&G company have 90 days to contact the UMO to dole out the landowners cost for the well? If the notice to be given is not 90 days, what is it? Finally, what happens if their time to notify the UMO has lasped?
I will definitely stay in contact with you!
Thankx again.
LN,
In LA, 90 days is pretty standard...from first production day of well to UMO notification. This usually comes in the form of the division order. CHK sends (sent) several documents associated with their DO document. Remember too, in Louisiana, you don't have to sign a DO document. I never signed mine.
LA UMOs need to get the "demand" letter written and sent return-signed-receipt registered mail [(letter includes Name, Adress, Phone, Parish, Well Serial No. and Well Name, e.g., "Mayo 13-14-16 H-1," and MOST IMPORTANTLY...Mineral Owner(s) Social Security Number(s)] with Division Order Documentation...signed or unsigned...back to Producer asap.
The State of LA gives O&G Producers a lot of leeway where "timeframes" are concerned...
IMO, the longer UMO waits to contact the Producer, the more likely UMO loses out on valuable info concerning their mineral estate. UMO will still pay his proportional share of the well's costs, as the Producer has been running expenses against UMO's mineral revenues from Day 1 of production. Believe me...They know who are the UMOs in a well unit.
UMO in Louisiana will have to do the "math" for themselves per UMO's cost basis in the well. Until "Payout" is reached per Producer's UMO Quarterly Reports, UMOs watch their mineral proceeds pay for the well.
If a well's payout status is $8 million and UMO owns two percent of the 640 acre section (UMOs well unit acreage/mineral percentage is on DO...Make damn sure it is correct before signing DO)...then UMO's well proceeds have to exceed $160,000 before UMO sees a dime of "mailbox money." Remember monthly unit/lease expenses are worked into the "payout" and continue throughout the well's lifetime.
Believe me, UMOs get an education in O&G production and it is quite a valuable education IMO. It pays to get as familiar with your well as you possibly can.
You and Your well will spend a lifetime together... Get to know "her" well.
...And, GohaynesvilleShale.com is a perfect way to begin your new relationship... LOL
DrWAVeSport Cd1 6/27/2012
Thank you for the educational postings for LA UMOs, Dr. WAV! It's the best explanation I've come across at GHS.
swoop,
Your quite welcome...
Anyone get a royalty check for unleased land in Ranchland Acres? Well is Hall #1.
Bayou Lassie, are you one of the few in Sec. 1 of Ranchland Ac. (Hall 1 drilled from Sec. 36 of T13N R 15W) that was not held by the old lease that was holding that land by production of wells in adjacent section? If you are one of those not held by production, and went unleased, then you would have had to go through the Unleased Mineral Owners procedure. If you are one of the majority of land owners in Sec. 1 of Ranchland who has been held by production by a well in another section, then you should get 1/2 your minerals subject to an old lease from early 1960s which was a 1/8th percent lease. Those people are receiving checks as of May 2012. That well went online July 2011
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