Replies to This Discussion

Permalink Reply by Snake Stewart on July 4, 2008 at 2:21

Well said Kassi and M. Mcwilliams. I still stand by my statement about war. If for no other reason to begin exporting vast amounts of unused gas abroad. From what I understand from some of the other sites I have been following , we have cheapest Natural Gas. I know that sounds crazy but I know I read it somewhere. As U.S. begins to lead the way in finding more uses for N/G it will only increase demand here and abroad. Not only can we begin to decrease or dependence on foreign oil but foreign N/G as well. We import around 30 % of the N/G that we use. With enough in reserves to contemplate exportation , this could be a catalyst to try to offset our horrendous trade deficit. If something doesn't give , none of this will matter anyway !

• ▶ Reply

Permalink Reply by Les Bamburg on July 4, 2008 at 4:42

SS, actually we import ~ 15% of our NG demand with 90% coming from Canada. Our import levels from Canada are declining and this will be replaced by the increase in US production. The cost to develop and produce natural gas in the US is much higher than other parts of the world so it is not economically feasible to export via ship. It is very possible to replace crude oil imports with natural gas production by converting transportation fuel.

• ▶ Reply

Permalink Reply by Randy on July 4, 2008 at 2:51

My major issue with it would be the oversight issue and understanding the complicated accounting that goes on. They WILL, undoubtedly, I don't care what company it is, charge you for things that are not supposed to be charged. You have to catch it, if you can.

Randy

• ▶ Reply

Permalink Reply by DrWAVeSport Cd1 on July 4, 2008 at 2:32

Kassi:

Are you sure the 200% penalty is directed at the unsigned lease holder. In another discussion by "greyshades," he retracted statements about unsigned leaseholder falling under this penalty. My understanding is that unsigned mineral owners will not be penalized...this measure directed at the industry only. You can check out the historical data on same on this website...big discussion last week.

DrWAVeSport 7/4/2008

• ▶ Reply

Permalink Reply by Kenny on July 3, 2008 at 22:35

The potential investment is huge. Chesapeake alone expects to drill 600 Haynesville wells in the next three years, which would cost $3.9 billion at current rates, although the company expects to reduce its per-well costs over time. Ultimately, Chesapeake plans to drill some 6,875 wells on its current leases.

• ▶ Reply

Permalink Reply by Tom on July 4, 2008 at 3:48

In my case, the home owners in our area were offered $500 each and 25% royality. There has never been an increased offer for anyone who did not sign, don't you agree it would be foolish to not hold out and "gamble" on doing the non-consent route? This is what many small homeowners are facing today. Wells are either going to be large enough to pay for themselves quickly, or small enough that monthly royalities would be less than $200. I look forward to more information to help make decisions like these easier for people like myself. T.

• ▶ Reply

Permalink Reply by Randy on July 4, 2008 at 4:37

I'd like $200 a month in royalties ... thats most of a car note is it not? For free almost? $200 a month extra on your mortgage could knock years off your loan?

Randy

• ▶ Reply

Permalink Reply by ChelleA1 on July 14, 2008 at 19:44

I'm not a oil and gas "smartie" by any means but ....and someone may totally disagree with me but....I would imagine that if your neighborhood had one individual working for all of you as a whole it would be a better outcome as to what you get in the lease bonus but from what I can tell the only way to get increased royalties would be that person working for you can also ask for say 27% or higher royalties There are people out here doing this for a small ammount that you don't even pay for...just a thought

• ▶ Reply

Permalink Reply by Les Bamburg on July 4, 2008 at 4:29

Kassi, as stated by DWS there is no penalty (200%) for unleased mineral owners that do not participate in drilling a well. The operator simply recoups operating and capital costs from the "carried" owners share of revenue. I would not refer to this as 100% royalty as the owner is a working interest owner receiving revenue and bearing costs.

I concur that keeping track of the operator requires a lot of time and effort. I had to do that many years ago and it was a royal pain.

The key is how much of the section has already been leased. I am sure the O&G company has some minimum % that needs to be leased before proceeding with development. Once that level is reached and if no progress is being made, landmen may be redeployed to other areas.

• ▶ Reply

Permalink Reply by Randy on July 4, 2008 at 4:41

Here is my take on it, and it's my PERSONAL take, not the opinion of my broker, operator, etc.

They need a majority, true enough, there is NO set percentage they need. When they have enough leasehold to be profitable is when it matters. They will send out letters saying, you have until blah blah blah date to sign, but everyone who is still holding out will think it is a scare tactic and ignore it. After lets say, xyz operator has 75% leasehold, he has the upper hand, and as an unleased interest you have lost your bargaining chip. He no longer needs you. You are just extra icing on a finished cake. When 75% happens, unleased interest people are SCRAMBLING to get leased, because they get scared, they can offer you whatever they want.... in many ways dropping a bonus can be very effective.

Randy

• ▶ Reply

Permalink Reply by Les Bamburg on July 4, 2008 at 5:06

Randy, thanks for the clarification. I was trying to address the economic issue for the operator but didn't state it clearly. I agree people think force pooling is scare tactic but really it is just required for the operator to proceed with developing a unit.

• ▶ Reply

Permalink Reply by Randy on July 4, 2008 at 5:09

Yes sir, economically they need as much leasehold as possible, preferably 90% all things being equal and in a perfect world.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• 4
• 5
• …
• 10
• Next ›
• Page