did you get sign release from CHK or Indio when your lease expired? If they left you out nothing you can do about past. The CV well not all that good. If they want to lease you make sure you get 25% royalty and all the other good clauses in lease plus royalty free gas, etc look thru this site for good info on lease terms. You may want oil & gas attorney to review lease before you sign. Bonus I don"t know with this a marginal CV well and area may be on or outside of shale play who know value of bonus 100 too low but doubt they would pay 1000 maybe 4-500 in market for 3 years no option to extend.
Thank You Adubu,
what is that cv well doing , the boles #1 ? What does royalty free gas mean? The land man said we are right in the middle of what they need so what happens if we do not lease and they drill ? We did not get letter of release , should we and who would it be chk or indio ? Thanks again fs
francis j swann--you need to learn how to use the rrc texas lots of data on it about any well in texas-- the Boles #1 drilled to 11,575' into CV but is producing in the Travis Peak at about 7,000' top of pay. It has made 219 mmcf in last 2 years and flowing now about 6 mmcf/month. At least it is close to paying for it self. You can google or look search on this site about royalty free gas but in short it means you pay NO transportation pipeline cost, compression cost or anything else to get the gas to market you paid your % of gross not net. If not leased and they drill you are them ULMO (Unleased mineral owner) lots of discussion on this site about that you can read. They could just leave you out of unit again depending on location of your minerals and if your minerals are undivided in larger tract or 100% within smaller surface tract. If undivided can not leave you out if the other undivided interest is put in unit. If that happen see a board certified oil & gas attorney. If indio brought lease from CHK then release would come from them if CHK kept any interest it would come from CHK since they leased you. If Indio wants to lease you not issue of release. Release inportant for record filing at court house so other know your minerals are avaliable to lease.
Thank you so much !!!!!!! I have been on rrc site my records of that well are in storage , I tried just entering o6 and chk # . I do need to navigate better on that site. Very gratefull for your reply , Francis J. Swann
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More