Barney A1m
RE: JW Release.
Under the terms of the leases in section 26 (and probably also 24 & 25) the O & G will release the leasee if a well shows no production for a specified period of time. Several of us had a 'party'. Discussion took place and information was shared as to the DNR reports on production from the well (s) that is (are) in Section 26. There was also some question as to why royalities were not paid from another producing well reported to be in section 26 as well. This led to multiple queries from the Mineral Owners regarding this situation. Bottom line was either we can be released under the terms of non production or given an answer to why royalities were not paid on the other well, that is currently in production. It had nothing to do with section 26 being boggy! It had to do with Mineral Owners asking the right questions to the right persons. We got both. We got released (and no contracts were signed, no signature required, no say indeed) and we were given an explaination about how the other well had a surface location in section 26 but was actually pulling from under section 35. This point is interesting in that only Chesapeak and Petrohawk are currently using the horizontal technology, apparently that drill bit has quite an angle on it!! But be that as it may, we are now free from the lease that began as early as 1999 for a little as $50 an acre, and 1/16 royalties, and getting hit for repairs, transportation costs (which incidently were for transportation provided by another company owned by JW) etc. JW indicated it had been 'evaluating' the economic value to them on these leases 'for some time.' One can speculate that this was 'too easy'. Personally, I'll take easy. We were 'hoodwinked' due to ignorancy. We are no longer ingnorant as to some aspects of a lease agreement and I for one have learned the term 'Pough clause', although I'm still working on the correct pronounciation!!! There was some discussion about pursuing legal action. Doing so may have resulted in a lengthy litigation, following a lengthy wait for the case to even make the 'docket.' This would certainly not have been in the best interest of JW or the rest of us. Certainly I would say this could be one reason JW figured it was in their best interest to just release us. Hope this helps. This is just one interpertation from a behind the scenes activist!!

Barney A1...have you been to any meetings in Doyline yet?

Russ and Amy Melton
201 Prysock Road
745-6073 (there is a machine on this line)
1.1 acres
I posted a reply, please contact when you can

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