Replies to This Discussion

Permalink Reply by Carl Goetting on August 26, 2008 at 8:50

Lets go what shall we discuss?

Permalink Reply by Marilyn on August 26, 2008 at 9:07

Just stuff about any offers.....any other info that we hear about the county concerning the Haynesville Shale or other. Now we can be specific about Marion County and not be under the broad East Texas umbrella nor do we have to worry about being on top of the East Texas page.

We need to get everyone over here. Spread the word about this site. BTJ brought my attention to it. I think it will catch on.

Maybe all can tell or retell where their land is in Marion so we can get a general idea if we're close to anyone to combine when interest picks up? And perhaps state whether you live on the land or elsewhere?

Our land is on the north side of Highway 49 close to Gray and about 2 miles from the Louisiana/Texas border. Jointly owned by my husband, his brother and 2 nephews. 170 mineral acres as well as owning the surface.

Also, perhaps if we need to communicate urgently, we could all give our e-mail addresses if people would be amenable to that. Mine is mwl0209@aol.com. Live in Austin, Texas.

Marilyn

Permalink Reply by btj on August 26, 2008 at 9:43

I have not had any offers as of yet. Our minerals in Marion county are in 3 tracts, one just northwest of the intersection of hwys 43 & 49 in Smithland, Grayson survey A-161. One other in the middle of the county, north of Lake O The Pines and one near the western side of the county. It does look like leasing is creeping northwest. I am surprised we have had no interest in the Smithland tract.
My e-mail is btj31@aol.com. I live in Hughes Springs.

Permalink Reply by Jim & Lyn on August 27, 2008 at 5:20

We have 30 acres S of Hwy49, about 2 miles E of 43&49 intersection (Smithland) and approx 2 m SW of Gethsemine. We live in Ladonia, Tx. have had 2 offers that I can remember. One a year or more ago and the last was a 20day deadline contract sent by Samson Lone Star, LLC that started at $250/acre and 20% and increased to $300 after deadline expired, although he mentioned possibly $400/acre. We own the surface and 1/4 of the mineral rights...he said the other mineral owners had already signed contracts with them. Does anybody know how to check on that and find out who the other owners are short of traveling to Jefferson courthouse?

Also, the landowner to the east of us also received an offer from Samson Lone Star, LLC for $250/acre. He has signed 2 previous contracts 3+2's in the last 10 years with a stipulation that no well may be located on his property and the leases both expired without production royalties. He was planning on turning down their offer too. Will call him and ask him to join us here too.

Also, the landowner behind our acreage has had an oilwell on his property for at least 10 years (I think he owns it himself) and we heard he doesn't plan to sign any leases for gas drilling and plans to stay with oil already pumping ...but someone said that we might be due royalties from the oil well if it has been paid off...How do we find out? His oilwell is #30908 (1) but I can't locate the company, his name, production figures or the name of the survey he's on that butts up to ours in WH Cowling, A-85. The oil well is at the end of CR3422 and I think the abstract # is A362. Do any of you have the Tobin map with well and lease data that would give me any info on it (we can't afford the map)? Would appreciate any ideas.

Permalink Reply by Carl Goetting on August 27, 2008 at 7:12

Jim & Lyn. I am Marion county mineral interest owner like you all. I have property east of you in the W. H. Burton A-8 and Ben Fry A-136.
I made a mistake earlier this year in leasing my Burton holdings for chicken feed.
In my opinion you should be looking at $1,000-$1,500/acre in todays market with a 25% royalty. I was offered $1,000 acre for my interest in Ben Fry and have not even begun to negotiate.

I have a Tobin map but it is no real help for your request. In order to obtain production statistics you at least need to obtain the oil operators name and well name. Then it can search and obtain Rail Road Commission Identification number. I don't quite understand how you all expect to be entitled to royalties. Do you own mineral interest in the property where the oil well is producing?

Permalink Reply by Jim & Lyn on August 27, 2008 at 20:14

Carl,
First off, we don't 'expect' entitlement to royalties from our neighbors well at all...but were hoping that their production figures would make our mineral rights the ones that Big Oil Fish would Die For!haha! However, several O&G professionals suggested that we may be due a royalty percentage under certain conditions since the well is only 628ft from our property line, only if it drilling costs have been paid off, or if we had declined to sign a contract but were actually within a pooled unit (which is also possible). There's an article on a La news site that discusses the risks and benefits of not signing a contract which runs the actual numbers for you but I can't find the link...sorry.

Before our cat deleted my first reply to you, I had written a detailed answer explaining about (W-12's) Inclination Surveys, with degrees of inclination of shaft drilling and deviation from a vertical coarse with resultant accumulative displacement of the wellbore actually deviating out of a true vertical depth to end up many feet away from the surface wellhead. But I'm too tired to say it all again except that Statewide Rule #11 places the "minimum distance that a well can be from a lease line (property line) at 467'. " I really had a time trying to trace down the necessary info you listed above on that well before I could pull up all the many drilling permits and the well logs and production records because the operator had been continually requesting that well records be kept confidental and out of public record until very recently...(word to wise- require copies of all production, etc records for the wells on your lease contract or they can keep em secret which would greatly lessen the thrills for you). Also, the drilling/deepening/unitizing&nonunitizing/and well type production changes for drilling permits all were filed under different Field Names and permit numbers...and the operator had several different variations on their company names!...kinda sneaky?haha...And they got away with not including a property plat of the actual pool of leased acreage with the locations of the 640 leased acres yet the RRC requires it of all the other operators proposing pooling units before they will issue a drilling permit. Very irregular.
Anyway, I finally located that wells Inclination Surveys and found that for approx every 469ft of depth that they drilled, the angle of inclination created a coarse displacement of 6.14ft possibly closer to our property line and by 2005 when the wellbore was at 6,949ft depth then they were approx 396' (not original 628') away from our property/lease line (maybe) which breaks Statewide Rule #11's minimum of 467'...but it could be a pipedream literally if it was angling the other way entirely and only the RRC can find out (do you think we should ask them?)...but I haven't finished researching permits and possibilities yet. I think they've drilled another 3000 ft down since 2005 which could put their wellbore sucking oil from our basement so to speak...sure, in my dreams, However, you could tell us from your Tobin map how deep is that Well??? It is the only well on 117 acres in the John Speake Survey, A-362 API #30908 ...your Tobin should show well depth current thru March 2008. By the way, the Speake survey joins your Burton survey to the E as it joins our WHCowling survey on the North end of the 40 acre well drilling unit.

Mainly, we are using this whole deal to personalize our learning during this adventure and deepen our understanding of the O&G field, contract laws, mineral leasing, and how to read and interpret all the info at our fingertips online. Finally, things we read are beginning to look more like English and less like Martian thanks to groups like this...but we still have so far to go...

Will you share the finite details of your Burton holdings leasing terms and contract stipulations...and what you are most regretting and intending to do differently with your Fry property mineral

Permalink Reply by Carl Goetting on August 28, 2008 at 8:42

Jim & Lyn, look like you are jumping with both feet. Good Luck.

1) My Tobin map is several years old. I use it to track leasing activity.
2) With the API number I checked the RRC site and came up with the following for John Speak Survey A-362
Lease Name: Cowherd
Lease Acreage: 117
Operator: Cook Exploration Co.
Well Name: Cowherd Well # 1 (40 acres held by production)
Operator # 174337
RRC Identifier # 14479 (To check production records)
Well Completion Date: Jan 13, 2006
Well Type: Oil
Vertical Completion Depth: 6,950 ft
Field Name: Braden (Travis Peak)
Production reported to RRC: March 08, 45 bbls, April 08, 25 bbls, May 08, 21 bbls, June 08, 68 bbls, July 08 No Report.

I see no further permitting activity on this lease.

Of major concern to me are environmental dedgredation and physical damage liability clauses, regardless if I own the surface or only mineral. Guarantee that all acreage leased will be included into a unit that is formed. I don't want orphan or stranded acreage. Do I want a straight 3 year lease or 3 + 2 year option. 2 year option with same amount of bonus for the 3 years. Leasing no other minerals except oil, gas, and hydrocarbons produced through the well bore. I regret I was in a hurry signing for a low bonus amount , low royalty. I regret accepting a 30 day draft or any draft. On my Fry property my mineral interest acreage is low, so I am in no hurry to lease.
Some & I stress some of these lease hounds use a divide and conquer mentality. Please keep in mind these are my opinions and I am not giving advice.
Everyone has to do what they see fit.

Regards
Carl Goetting

Permalink Reply by btj on August 28, 2008 at 9:04

Carl, I have been leasing our minerals for 20+ years and always just regarded it as mailbox money. I never gave much thought to counteroffers and lease terms until the Haynesville Shale appeared. I would have done the same thing you did as far as leasing 60 days ago. I Never would have given it a second thought. We leased 2 tracts in Nacogdoches County for $200/acre, 1/6 with 2 yr option 2 years ago. Wonder what its worth now? I do have a relative that is a Landman in Fort Worth and one that is a Geoligist in West Texas. If anyone has questions I will try to get answers if I can.

Permalink Reply by Carl Goetting on August 28, 2008 at 11:17

Byron, I was of the same opinion. Fortunately I have interest in other Marion County property, so I plan to negotiate better terms and hope everyone does too. With out a doubt your Nacogdoches County property would be worth considerably more today. Thanks for the offer to obtain information as needed.

Permalink Reply by Jim & Lyn on September 12, 2008 at 8:35

btj
Thanks for the offer to use your resources to find answers for some questions for us. We don't understand what it means by "overriding royalty". We were advised by an O/G investment guy who looked at the Marion county contract offerred to us by Samson to ask for at least $300/acre and a 25% Overriding royalty...is that the same as the 1/5 royalty in the contract or a different kind of royalty altogether?

Thanks, jim and lyn

Permalink Reply by btj on September 15, 2008 at 2:39

Jim & Lyn,

The info I got about the royalties was that overidding royalties are a % of the profit after expenses, where regular royalties would be a % less your share of the expenses of production.

Permalink Reply by Jim & Lyn on September 15, 2008 at 7:14

Thanks!

• ‹ Previous
• 1
• 2
• Next ›
• Page