Yeah, Baytex is involved in the North Dakota shale oil boom. They are apparently trying to branch out from domestic (Canadian) heavy oil to include light. Morehouse Parish could really use a good break-nothing but bad news for the last few years.
You are correct. It could use a break. It is good they are looking at it hard. I have land north of Bastrop. I hope it comes my way soon. With all the mills closed down Baytex, Devon, etc would have a large impact on the area.
The $10 And Other Valuable Considerations is legal boilerplate of no real significance. When a land company, other business entity or individual takes a lease from a land/mineral owner and assigns it to an energy company such as Devon it is customary that a portion of their compensation is an Over Riding Royalty Interest. It is likely that Devon had an agreement with the lessee that it would assign a royalty interest for the differential between say a quarter (25%) and the royalty called for in the lease. For example, If the lease is for one fifth (20%) the lessee received a monetary payment plus a 5% royalty interest in the lands covered by the lease. This is quite common and difficult for the mineral owner to avoid unless they have a large and strategically located interest and/or they are willing to accept the risk of waiting until the operator is ready to actually begin development (forming units and drilling wells).
Marc Stepman
Aug 30, 2011
Marc Stepman
Any news on leasing still going on in Morehouse Parish?
Sep 25, 2011
Volkswagon guy
BTE LLC out of Austin is leasing near Mer Rouge. I believe they are a subsidiary of Baytex Energy of Canada.
Sep 25, 2011
Marc Stepman
Sep 26, 2011
Volkswagon guy
Sep 26, 2011
Marc Stepman
Sep 26, 2011
Marc Stepman
Sep 29, 2011
Buck Shot
Oct 9, 2011
Volkswagon guy
Oct 11, 2011
Marc Stepman
Any new information floating around on the Morehouse Parish activity in regards to leasing or well info?
Mar 9, 2012
Skip Peel - Mineral Consultant
The $10 And Other Valuable Considerations is legal boilerplate of no real significance. When a land company, other business entity or individual takes a lease from a land/mineral owner and assigns it to an energy company such as Devon it is customary that a portion of their compensation is an Over Riding Royalty Interest. It is likely that Devon had an agreement with the lessee that it would assign a royalty interest for the differential between say a quarter (25%) and the royalty called for in the lease. For example, If the lease is for one fifth (20%) the lessee received a monetary payment plus a 5% royalty interest in the lands covered by the lease. This is quite common and difficult for the mineral owner to avoid unless they have a large and strategically located interest and/or they are willing to accept the risk of waiting until the operator is ready to actually begin development (forming units and drilling wells).
Apr 28, 2012