Replies to This Discussion

Permalink Reply by P.G. on June 29, 2010 at 14:34

Wanted or not, they should know exactly whose minerals they are extracting and owe them their share. You certainly aren't implying if someone goes unleased, they deserve nothing.
That would be theft wouldn't it?

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Permalink Reply by Two Dogs, Pirate on June 29, 2010 at 14:38

1)They know what they have and what they don't have. 2)No, but you are going to have to work to get it.

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Permalink Reply by keb on July 1, 2010 at 10:40

Two Dogs, please explain, "unwanted working interest?" would'nt they still have to pay you?

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Permalink Reply by Two Dogs, Pirate on July 1, 2010 at 10:50

When someone "rides the well down" the operator looks on them as an unwanted working interest. They still have to pay you but they don't have to help you. They will do what is required of them by law but that is all.

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Permalink Reply by The_Baron on July 1, 2010 at 17:36

we call them freeloaders.

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Permalink Reply by Harvey White on July 2, 2010 at 1:03

Exactly what is a freeloader in your opinion?

Permalink Reply by Antsu-in-Japan on July 6, 2010 at 16:36

Excellent question, Harvey. I surely don't see anything "free" about an UMO having to help pay for a well and maintain its upkeep over the years to come.

We aren't leased and could care less if and when the gas comes out of our section. NO, we are not banking on the gas to be our save-all...we have other means to take care of our generations to come. YES, the "greedy" (as some of you have called us UMOs in the past)... "freeloaders" (as we seem to be termed by the industry) in my family have every intention of riding on the backs of the company that drills in our section, if only to help balance out the 75% that it will take from the other people who own minerals in our section. What is currently being tossed around in the HS has left a very sour taste in our mouths, so HECK NO!! We are not biting. (Now, 35% royalties would represent a partnership that would be a bit more "palatable." LOL...!!)

Some people are very quick to point out that we wouldn't have anything if not for O&G companies tossing us 25% scraps off of the billions they make. That, in my opinion, is anything but the truth. The fact is that we would still have our land/minerals...and there are many things we could do to make money off of it/them if we choose to do so.

The question the O&G companies need to ask themselves is this: "What would WE be if mineral owners didn't lend us THEIR land and/or minerals...?"

Permalink Reply by The_Baron on June 29, 2010 at 7:18

I am not sure what you asking, but a unleased mineral owner is paid their prorata share of production, less the costs to drill and operate the well and supervision(overhead).

So for Example, a UMO that owns 40 acres of a 640 acre unit would have a 6.25% ownership.

They would pay for 6.25% of well costs, but receive 6.25% of production. Keep in mind the UMO will get nothing until payout as their revenue will go towards paying down the initial costs in drilling a well. Somtimes a UMO will never receive a dime, as not all wells drilled reach payout. In theory, a HA well should reach payout, although the timing will depend on the factors of cost to drill/operate, gas prices, and production.

There are numerous debates about which pays out more over time on this site.

The mineral code is VERY specific as to what a non-participating unleased mineral owner recieves.


Now as to your situation,
1) Are you sure you own minerals?
2) has a unit been applied for or approved?
3) How many acres?

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Permalink Reply by The_Baron on June 29, 2010 at 8:33

Well, just by the well name I can tell that this is a unit well. It is HA RA SUU. The unit is 640 acres+/-

I would suggest calling CHK and seeing if they would be willing to lease you. Tell them there is a permited well and you are in the unit and would like to be leased.

By the way, just because they made an offer is no garuntee you own the minerals... Not saying you do or not, I have not looked at the title in this section.

How many acres do you own?

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Permalink Reply by Hale Yayuh on June 30, 2010 at 0:07

Baron, how, exactly, did you get a DNR map like the above? Thanks.

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Permalink Reply by Les Bamburg on June 30, 2010 at 2:30

Hale, you can create a custom map on Sonris. See "Interactive Maps" under "GIS Access".

Permalink Reply by Harvey White on July 3, 2010 at 4:47

All I wanted was for some of the more informed people on this board to give me advice on my umo status( ie how to get info on how to get well reports on a well in my section that I did'nt ask for and have been lied to about at every turn in the process). I dont know how the process works with umos. Thats why I ask the more knowledgeable members on this board. I usauly get great advice and treatment from great people that are eager to help. Now a new term on this board that I hav'nt seen has come up that seems to relate umos as freeloaders. Can someone, as I know thier are some highly entelegent people here, please explain how the two terms relate to each other?

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