Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2009 at 6:58

Yes. And, No. Depends on which section you are referencing. Section 23 is in Bracky Branch and Section 25 in Gahagan. I will try to find the unit designations a little later. Right now the butter beans are ready. Yes.

Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2009 at 8:06

I'm going to assume that your sections are 23,24 & 25. Section 23 in HA RA SUI in the Bracky Branch Field. Section 24 is HA RA SUC in the Gahagan Field. Section 25 is HA RA SUA in the Gahagan Field. All Encana units. And yes, the butter beans were quite good. Especially with MoMo sauce. The pot liquor is the best.

Permalink Reply by J.Shaler on August 9, 2009 at 5:31

Thanks for the info! I love crowder peas, butter beans, speckled beans with hot ChowChow!!
Question: Well serial # 239978, name Milner , Red River Parrish is permitted for sec.23 so when it is finished and flowing will I get royalties?

Permalink Reply by Skip Peel - Mineral Consultant on August 9, 2009 at 6:04

J. Shaughnessy. Maybe. At this point, this serial number only represents a permit. Not a well, just yet. There is no spud date and Les doesn't list it in his Red River Drilling Rig post. Do you know if a well pad has been built? Are you sure you own your minerals? If you own modest mineral acreage, the operator or their leasing company possibly just hasn't gotten to you yet. Do your homework and prepare to be patient. By all means do not accept the first offer made. Tell the landman you'd like to think about it. Then with some specific information, there are a number of GHS members who would offer suggestions. Then you just have to decide which ones to take. LOL! Good Luck.

Permalink Reply by J.Shaler on August 9, 2009 at 6:38

I have a mineral lease with Encana that will expire in 1.5 years. Encana has cleared a road to the well pad site. Its 3/4 mile from my acreage. I live in another state so I don't see the area often.
I realize it is just a permit but one can always hope for a problem free well to come in!
Since there is so much to learn about the entire process I want you to know I really appreciate this site! So my question is if a good well is drilled by the company that leases your land too and it is in the same section as yours but not on your land will you get a royalty check?

Permalink Reply by Les Bamburg on August 9, 2009 at 7:15

JS, the following well is planned to be completed in Section 23 with a surface location in Section 24. All the mineral owners in Section 23 will share in the production from the well regardless of the specific location.

EnCana, Diane Milner 23 #H1 Well, Serial #239978, S24(23)-T13N-R10W

Permalink Reply by Skip Peel - Mineral Consultant on August 9, 2009 at 7:18

Yes. The surface location of the well has no bearing on the payment of royalty to lessors. With Haynesville Shale wells, production, and thus royalty, is from the lands pooled within the unit where the well's "perforations" are located. The fact that a road and well pad are in place (along with the well permit) bodes well for drilling in the near future. How soon is difficult to guess. A well permit is good for 180 days. And the expiration date of lease terms often dictates when a unit will be developed. As you have 1.5 years remaining, Encana may not drill you right away but your future well in certainly on their radar. After the (your) well is completed and "turned to sales", you should receive a division order stating your fractional portion of the hydrocarbons produced from your unit. After sales of the first gas, royalty checks should show up in your mailbox in 90 to 120 days.