Replies to This Discussion

Permalink Reply by Mac Davis on March 20, 2010 at 15:17

When did the lease expire? When did they start drilling?

Township, section, range?

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Permalink Reply by Lisa Weaver Smith on March 20, 2010 at 20:10

Ok this is what we think has happened....the original lease was in 2005 it was a three year lease with option to renew for two more years. We have two leases in Red River parish and we did recieve renewal payment for one but after going over our records have discovered they never sent renewal for the one that they just finished drilling on. I contacted Samson on Friday and was given the run around about it. I think what happened is that somehow it got overlooked. My question is what now? The well should be getting close to completion I was told they already had a pipeline and not sure if it has been fracked but about month ago we went down and the workers said they were beginning to frack it.
So if for some reason we are wrong they have until June to have production. Although we are about 100%sure we have not recieved payment. What should we do? Oh and thanks so much for any advice in advance. :)

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Permalink Reply by Lisa Weaver Smith on March 20, 2010 at 20:12

Oh the well name is the Breedlove

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Permalink Reply by Henry on March 21, 2010 at 1:07

Lisa,
If, indeed, you did not receive a renewal for the 3-year lease, you are unleased. You are free to sign a new lease. Start thinking now, about what is important to you in that new lease -- cost-free royalties, depth restrictions, vertical pugh clause, surface-use restrictions, shut-in payments, etc. Read up, be prepared, and decide what's important to you and go for it.

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Permalink Reply by Skip Peel - Mineral Consultant on March 21, 2010 at 2:59

And you are not required to lease to Samson Contour. Or any company is you so choose. You need the services of an experienced O&G attorney.

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Permalink Reply by Les Bamburg on March 21, 2010 at 3:21

Lisa, if you lease with Samson now you can get much better terms than the original. Also, your section is in the core of the play and near excellent wells that have tested ~ 20 MMcfd (million cubic feet per day) in both the Haynesville Shale and Bossier Shale.

At minimum I would expect Samson to give you a 25% royalty rate, $6,000 per acre bonus and the cost-free royalty clause Henry mentioned. How much you press for an increased bonus is your call.

By the way I assume your acreage is in the northern half of the Section 36 as the southern half may be held by a producing Glen Rose well.

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Permalink Reply by Lisa Weaver Smith on March 21, 2010 at 13:14

Thanks so much for the info, yes we do have interest in the glen rose well or wiggins well thru a relative but it is a different and has nothing to do with our other lease. Im going to call Samson agin tomorrow and see if i can get any answers.
Also I looked up the well on Sonris and it showed the well was shutin waiting for orders. Does anyone know what this means?

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Permalink Reply by Skip Peel - Mineral Consultant on March 21, 2010 at 13:17

Lisa. I suggest that you not contact Samson Contour. I think you should speak with a qualified O&G attorney.

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Permalink Reply by Lisa Weaver Smith on March 21, 2010 at 18:13

Ok so I should not contact Samson? I called them three time on Friday to make sure I was correct due to the fact that we went thru our deposits thru 2006 and cannot find where we were sent any money for this lease. Anyway I called them three times and did talk to someone but he would not make sence. I ask him to please fax me a copy of the signed check with my sig on it and he never did . That was on Friday and I did call him back only to get voice mail. My guess is they are figuring out the mistake and probaly trying to decide how to handle it. That was the only reason I was going to call them back just to make sure somehow we are not wrong.

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Permalink Reply by Les Bamburg on March 21, 2010 at 13:26

Lisa, Sonris may not be up to date with the latest information on the well as it did not indicate the well had been frac'ed. Shut-in waiting for orders just meant the contractors were waiting on Samson to make a decision on what to do next.

Also, I should have commented originally that you can lease with any company but just assumed Samson may give the best terms since they are operating the unit.

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Permalink Reply by Lisa Weaver Smith on March 21, 2010 at 18:14

So if we are correct and no release had been done we should find a o&G attorny and go from there. Is there a time limit since the well has been drilled?

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Permalink Reply by Belmont Boy on March 21, 2010 at 18:42

Lisa, just to be on the safe side, please consider the following. I, also, had a 3 yr with 2 yr option with another company. The third year expired, but no renewal check and I was already counting my new lease bonus $$$. But when I re-read my original lease, I found a clause stipulating it was my responsibility to keep the company up to date on my mailing address. In fact, it had changed. I sent a change of address and about 3 weeks later received an unopened return receipt letter which had been sent to my old address, and then returned to the company. They were just sitting on the check until I sent the new address. I checked with my O&G attorney and he assured me I didn't have a leg to stand on. They'd done their part, so the lease continued in effect. This may not be applicable to you, but did want to pass it on. And, if you want the name of an O&G attorney I've had good luck with, as have many others according to posts here, let me know. Good luck!

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