The_Baron's Posts - GoHaynesvilleShale.com2024-03-29T11:19:44ZThe_Baronhttps://gohaynesvilleshale.com/profile/The_Baronhttps://storage.ning.com/topology/rest/1.0/file/get/2192530307?profile=RESIZE_48X48&width=48&height=48&crop=1%3A1https://gohaynesvilleshale.com/profiles/blog/feed?user=1az6vzvploolc&xn_auth=noHelp out the Little Guy: Reserve your Shallow Rights!!tag:gohaynesvilleshale.com,2009-06-30:2117179:BlogPost:7527182009-06-30T14:59:22.000ZThe_Baronhttps://gohaynesvilleshale.com/profile/The_Baron
Once upon a time, before the Haynesville Shale introduced Northwest Louisiana to the concept of a resource play, the search for oil and gas was conducted by many smaller companies. These smaller companies would drill the more traditional prospects, looking for that hidden resevoir of oil or gas. Now, with the HA shale, large companies have aquired enormous leaseholds and effectivly push out the small independents.<br />
<br />
I have watched as these small independents have had to go elsewhere in there…
Once upon a time, before the Haynesville Shale introduced Northwest Louisiana to the concept of a resource play, the search for oil and gas was conducted by many smaller companies. These smaller companies would drill the more traditional prospects, looking for that hidden resevoir of oil or gas. Now, with the HA shale, large companies have aquired enormous leaseholds and effectivly push out the small independents.<br />
<br />
I have watched as these small independents have had to go elsewhere in there search for mineral riches, as these large leaseholds by CHK, HK, Encana, etc. have locked up much of the availble land. These large companies do not want the little guy in there way, and therefore will not farmout to the small independents.<br />
<br />
Very little attention has been given to the fact that one reason the lease bonuses rose so dramatically, was to drive out the small inpendents who can not afford to pay thousands per acre, especially so in a prospect that could probally end up in a dry hole.<br />
<br />
Many on this site have opined that a lease bonus of $100 acre is ridiculas. That may be true for a lease that contains rights to a valuable resource play like the HA, but for a chance to have a well drilled to the hosston, bodcaw, nacotoch, tuskaloosa, smackover or cotton valley, it is sometimes all that can be justified. Especially so if the well is a wildcat, where the outcome is far from certain.<br />
<br />
I have seen more prospects end in dry holes or worse yet non-commercial wells than good producing wells. These wells cost just a fraction of a HA horizontal well, but come with significant risk.<br />
<br />
These large companies have no intention of developing these shallower resevoirs. Some companies, like CHK are not even loging all their wells!! Without logs, who knows what possible riches lie above their precious Haynesville shale.<br />
<br />
For those who have already leased, it is too late. Maybe after time has passed, you may be able to get your shallow rights released, but it will be difficult.<br />
<br />
Most mineral owners who where thoughtful enough to include pugh clauses will also be in the same boat, only the depths below the HA will be released automatically after the primary term.<br />
<br />
I urge those who are still unleased to consider the following proposal:<br />
<br />
<i>Please withhold your shallow rights, to maybe lease those to someone who will actually develop those depths.</i><br />
<br />
In the end, you may not see the life changing money that the HA might bring, but you never know what lies beneath your land.Prescription and Mineral Sevitudes (Part 2)tag:gohaynesvilleshale.com,2009-05-28:2117179:BlogPost:6979752009-05-28T19:00:00.000ZThe_Baronhttps://gohaynesvilleshale.com/profile/The_Baron
Prescription of non use is the most commonly litigated issue concerning mineral sevitudes.<br />
<br />
The mineral code provides that prescription commences from the date when the servitude is created.<br />
<br />
According to The Mineral Code, a use of a sevitude suffiecient to interupt prescription consists of <u>good faith operations for the discovery and production of minerals.</u> The code reqires proof of three elements to establish good faith.<br />
<br />
1. Operations must be commenced with reasonable expectations of…
Prescription of non use is the most commonly litigated issue concerning mineral sevitudes.<br />
<br />
The mineral code provides that prescription commences from the date when the servitude is created.<br />
<br />
According to The Mineral Code, a use of a sevitude suffiecient to interupt prescription consists of <u>good faith operations for the discovery and production of minerals.</u> The code reqires proof of three elements to establish good faith.<br />
<br />
1. Operations must be commenced with reasonable expectations of discovering and producing minerla in paying quanities at a particular point or depth.<br />
2. A well must actually be drilled at the chosen site to the depth at which there were reasonable pectations of discovering and producing minerals. (Note: it is enough that a well was drilled, the well does not have to produce, <u>a dry hole suffices</u> if the other good faith requirements are met!)<br />
3. Operations must be conducted in a manner that they constitute a single operation, although drilling or mining is not conducted at all times.<br />
<br />
<br />
If these requirements are met, <u>prescription is <b>interupted from the date the well is spudded</b>, and prescription begins to <b>run anew from the last day on which actual operations are conducted</b>.</u> Pre-spudding activity, such as site prep, location building, surveys, erection of structures including the driling rig DO NOT interupt prescription. Note that this contrasts with activities considered "drilling operations" under many standard lease forms.<br />
<br />
Unitization of part of the tract burdened by the servitude does not divide the servitude. However, unitization canresult in a division of the servitude in determining whether prescription has been interupted. The location of the well determines whether the servitude is divided for this purpose. If the unit well is located <b>on the servitude</b>, then prescription is interupted for the <b>entire servitude</b>.<br />
However, the well is located on land not burdened by the servitude, then the servitude is divided into unit and non-unit lands for the purpose of determining whether prescription is interupted.<br />
<br />
Also, according to article 59, an obstacle that prevents the servitude owner from using his servitude that the sevitude owner cannot remove or prevent <b>suspends</b> prescription for as long as the obstacle exists. Suspension is different from interuption. When interuption occurs the prescription period commenses anew for 10 years, when suspension occurs the usual result is the period of prescription that accrued prior ro the existance of the obstacle is subtracted from the 10 years to determine how long the servitude will last after the obstacle is removed. If the obstacle exists when the servitude is created, prescription will not run until the obstacle is removed. One example of a nobstacle could be a servitude that is burdened by governmental powers of police such as zoning or envionmental regulations; however most questions regarding what is an obstacles is more difficult.<br />
<br />
Prescription does not apply to all servitudes. Most notably is when the Federal or State government aquires land from any person and the acct, judgement, etc. contains a reservation, prescription does not run for as long as the government owns the surface. Should the land already be burdened with a servitude when the government aquires the land, the prescriptive period runs as if the aquiring athority had not aquired the land! upon the prescritive period, the transferor of the land shal without further agreement become vested in the mineral right if they had reserved the minerals when the land was aquired by the government body.Prescription and Mineral Sevitudes (Part 1)tag:gohaynesvilleshale.com,2009-05-28:2117179:BlogPost:6978622009-05-28T16:19:41.000ZThe_Baronhttps://gohaynesvilleshale.com/profile/The_Baron
Louisiana follows the non-ownership theory of oil and gas, thus there is no seperate mineral estate. Any attempts to sell or reserve the ownership of oil and gas results in a <b>Mineral Servitude</b>.<br />
<br />
The most important legal consequence of the mineral servitude is that unlike a mineral estate that can be created in perpetuity with no obligation on the owner to use its rights is that a mineral servitude is subject to perscription of non-use for ten years.<br />
<br />
Article 21 of the Mineral Code…
Louisiana follows the non-ownership theory of oil and gas, thus there is no seperate mineral estate. Any attempts to sell or reserve the ownership of oil and gas results in a <b>Mineral Servitude</b>.<br />
<br />
The most important legal consequence of the mineral servitude is that unlike a mineral estate that can be created in perpetuity with no obligation on the owner to use its rights is that a mineral servitude is subject to perscription of non-use for ten years.<br />
<br />
Article 21 of the Mineral Code defines a mineral servitude as "A mineral servitude is the right of enjoyment of land belonging to another for the purpose of exploring for and producing minerals and reducing them to possession and ownership."<br />
<br />
A servitude owner is under no obligation to use his rights; however, if he does not exersise his rights within ten years, the servitude will be extinguished.<br />
<br />
Only a owner who owns the mineral rights can create a servitude. A servitude can be created that is set to terminate at a certain time, occurance of specific condition, or even of the condition of divesting the title. However, a usufructaury can not establish a sevitude on the estate of his usufruct, even during the time of his usufruct.<br />
<br />
A single servitude can not be created on non-contiguous tracts.<br />
<br />
The mineral code prohibits parties from prescriptive periods of more than 10 years, but parties can agree to shorter prescritive periods, fix the term for the duration of the servitude (again, the term can not exceed ten years), or both.<br />
<br />
Article 27 of the Mineral Code lists five methods by which a servitude may be extingished:<br />
<br />
1. Prescription resulting from non-use for ten years<br />
2. Confusion<br />
3. Renunciation of the servitude on the part of him to whom it is due, or express remmision of his right<br />
4. Expiration of term servitude was granted, or happining of dissolving condition attached to the servitude<br />
5. Extintion of the right of him who established the servitude.<br />
<br />
The first mode is prescription of non-use for ten years. This mode has been extensily litigated, The basic concept is simple. Use it or lose it.<br />
<br />
Confusion results when the title is merged. In the case of the servitude, it is extinguished when ownership of the servitude and of the surface is the same person.<br />
<br />
The third part is when a servitude owner simply abandons his right to the servitude. This mode requires an act clearly expressing the intent of the servitude owner to convey or release the servitude to the surface owner.<br />
<br />
The fourth mode obviously extinguishes the servitude when the term or resolultory condition occurs.<br />
<br />
The fifth mode deals with servitudes created by a landowner who has title for a term or who has title subject to a resolutory condition.<br />
<br />
Part 2 will deal with the first and most complicated of these modesCaddo Assessors Office for Dummiestag:gohaynesvilleshale.com,2009-05-22:2117179:BlogPost:6902572009-05-22T14:00:00.000ZThe_Baronhttps://gohaynesvilleshale.com/profile/The_Baron
I posted this in a disscusion earlier and thought it informative. Please feel free to comment, I will update, add or correct any information as time goes on.<br />
<br />
The driving and time aside, I personally believe every landowner should have a copy of the assessors plat for land they own. You can make your trip even more worthwhile by checking to see what they have assesed you for. You can challange your assessment if you feel its too high and many times they will knock a little off just to get you…
I posted this in a disscusion earlier and thought it informative. Please feel free to comment, I will update, add or correct any information as time goes on.<br />
<br />
The driving and time aside, I personally believe every landowner should have a copy of the assessors plat for land they own. You can make your trip even more worthwhile by checking to see what they have assesed you for. You can challange your assessment if you feel its too high and many times they will knock a little off just to get you out of the office. Come with a list of reasons of why you should be assessed lower, leaky plumbing, old roof, old water heater, etc....<br />
<br />
I will speak of the caddo assessor, but most are set up in a simular manner.<br />
<br />
To find your plat, you need to know if you are inside the city (shreveport) or out.<br />
<br />
Depending on which one you are will determine what set of books you look in. The staff will show which ones are which. The books are by Township-Range-Section-Subdivision<br />
<br />
For example, If you have land in section 30-T16N-13W, you are in the book that includes tract 161330.<br />
<br />
Find the main page for your section. This will show all tracts or subdivisions in your section.<br />
<br />
The charge for the section plat varies depending on what size you want (letter to 11x17), but is only a dollar or two.<br />
<br />
If your land is in a subdivision, there will be a seperate page for that subdivision. The subdivision page will have the lots drawn out and maybe even have the surveyors bearings and acreage. In any case the plats are fairly presise. The same costs apply for copies.<br />
<br />
If you get confused or can't find it, ask for help, thats why the staff is there, to help the general public.<br />
<br />
Depending on your know how, it should only take a few minutes to find it. The staff makes the copies, usually on the spot, but it depends on how crowded it is. While your there, get the assessment info on your tract, only $0.50<br />
<br />
If you know your s-t-r you are in good shape, if not you will need to ask, the staff can look you up by address or name.<br />
<br />
They have computers for the general public, but they are a pain to use.