Replies to This Discussion

landownerPermalink Reply by Jane Burgess Philipp on September 10, 2010 at 8:13

Thank you FXEF and Baron

Let me make sure I understand exactly what your are saying. Since our property is part of a larger "unitized area" on which there are active wells, then our acreage is considered under production even though there are no wells. Then it is also possible that leases signed in the 1930's which made no mention of a larger area could still be in force. If that is the case, I should talk with a landman to clarify the situation. Are there any recommendations? Thanks again!

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Oil & Gas ProPermalink Reply by The_Baron on September 10, 2010 at 8:46

Absolutly. While I don't have much Texas experiance. A lease is held by production if it is included in a "pool" or unit. The well could easily be on another tract.

Also, you could have a smaller tract held by a lease that covered a larger area, For example lets say I own 160 acres. I lease the entire 160 acres with a standard lease, we will ignore pugh clauses and the such for now.

Lets go on to say a well is drilled, and is succesful. This lease is now held for as long as there is production.

Now, I sell 40 acres off. The well is not located on this 40 acres, but this sale would be subject to any easements, servitudes, and leases of prior record, including our oil and gas lease above.

Therefore, your new 40 acres would be under lease. The sale could have either reserved the minerals or transfered them to you, but the lease is still active.

A landman would follow the chain of title to see if this and other situations have occured.

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on September 10, 2010 at 9:53

You are probably HBP. The company that leased in 2000 didn't record the lease because they probably found out that they made a mistake by not going back far enough in title to find the lease in the 1930's.

landownerPermalink Reply by MARG on September 10, 2010 at 16:29

Jane, like I said previously, I am almost absolutely positive that Cabot has never had a lease in that area. They would have no use for just one, and they have never had a unit there. In fact, I do not think they have ever been in Shelby until the HS Talk. You need to check with XTO and Classic.

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landownerPermalink Reply by MARG on September 12, 2010 at 15:52

Jane, leases from the 30's w/no drilling on them do not mean anything as they are placed in a unitized pool--drilling can be elsewhere in the unit.So, they are hbp. This AGray Survey, in general, has been in production many years. Sometimes they rework old wells, drill a new one, etc. It is just that if you are in the recycle part, the decimal percentage is small so the money is little. I am in the recycle pool for "some scraps or little acreage", and I laugh at all the stubs (so many records for the amount of money). Most people do have other minerals and royalties though and the recycle is a "side kick". The companies have a lot of work in dealing with it too. It seems to be a well-known problem for the company office employees. LOL The recycle pool must have been divided, redivided, etc. and I suppose that with several heirs, it could get to be more trouble than it is worth,HOWEVER, IF ONE BECAME VERY FORTUNATE AND GOT IN ONE OF THE MONSTER HS OR BS, IT MIGHT PAY OFF1!!! I am hoping that you will end up with a lease and can get one of the new leases to add with your recycle. YOU HAVE A GREAT HERITAGE BEING FROM THIS FAMILY AS THEY ARE A 'LEGEND". I WOULD LIKE TO GET TO KNOW YOU!!!

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landownerPermalink Reply by L D H on September 10, 2010 at 13:35

Jane, There is an E. T. Burgess, et al. listed in tract 37, date 8-4-44, recorded book 287, page 447, number of acres 63.670. If this is your family. then you are part of the P. H. Pewitt Gas Pool and Recycle Unit. You can find the details in Volumn 216, Page 443 of the Deed of Records of Shelby County. Over 100 families in the Joaquin area pooled their 3417.13 acres to form a Unit. It is sometimes called the Recycle Unit or the Acreage Pool. Members of my family have just called it the Joaquin Pool. It is all held by production. I hope this will help.

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landownerPermalink Reply by L D H on September 10, 2010 at 14:15

Jane, In looking at a map of the Recycle Unit, I notice that there is some land north of the creek that is not shown to be part of the Recycle Unit. Only 63.670 of your acres were included. The area north of the creek has the name E. T. Burgess and "Sinclair" on it. This area may be 100.77 acres. You could have part of the land in the Recycle Unit and part of the land not. You can see how complicated this could be. I suggest you talk to a Shelby County lawyer who is familiar with the Recycle Unit. Another option is to contact Classic Operating Company at 817-877-5611. They may be looking for you. Those companies named by Marge earlier in this discussion may also be involved, as there are numerous wells in the Recycle Unit. I hope I am being helpful. I am not any kind of authority on this subject, but I do have ancestors from Shelby County and they were probably neighbors of your ancestors.

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landownerPermalink Reply by Etola on September 10, 2010 at 16:21

I agree with LDH, Jane. If you are getting royalty checks from Classic, you can contact them and get info. Also, go back to SC Clerk's office and get a copy of the division order and look at the plat (if they did those back then) to see where your property is located in the unit. It sounds like you may not have all your acres in the unit. If not, then you can lease those acres not in the unit. This property may have been overlooked by O&G companies due to its closeness to the Recycle Unit. Good luck!

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landownerPermalink Reply by Jane Burgess Philipp on September 11, 2010 at 8:05

baron, marg, two dogs, LDH and Etola

Thank you for your help and advice. I have a much better grasp of the situation than I did only 48 hours ago and am committed to becoming even more knowledgeable. While it appears the phantom lease from Cabot may have never been consumated or filed because they didn't check the back records (hard to believe so don't buy their stock), it does seem that only part of our land is leased. It looks like my grandfather kept the north hundred acres for farming.

Several questions: Where can I get a map or plat (the copy of the lease with Pewitt only "describes" our parcel) of the entire "recycle unit" and possibly a list of participants?

Where can I go on the Net to learn more about the recycle unit and its history?

In order to verify my conclusions about the unleased land, am I better with an attorne(y or landman familiar with Shelby County and the Haynesville shale?

thanks to all again!

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landownerPermalink Reply by MARG on September 11, 2010 at 11:46

Jane, this has been signed over to Classic and XTO NOW. Some had minerals in the general area of where a grandparent lived that was with GEL at Baytown and some were the same families who lived NEAR your forefathers. One of their family members called me about four years ago as they had suddenly received a small check and wanted to see if I would know about it as through the years, I have had to make some change in the total decimal interest of people in one unit as wells were added. Later, I found others were in GEL and it was just not producing, etc. so they thought they did not have a lease. If indeed, you have unleased land, as you know, you are very blessed financially. All of our old Division Orders had everyone who was in the units and addreses. It was like a county directory. Many companies are leasing there now and I would think that Goodrich and XTO would be good for you. Most likely XTO would have more around to use to form a unit, also Classic is in that area. Currently, Classic is not drilling shale; however they may do some JV's.

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landownerPermalink Reply by MARG on September 11, 2010 at 15:12

If you have minerals to lease, you can lease different depths; you could lease down to a certain depth to Classic or someone working in the area as Joaquin is famous for Travis Peak Wells. Many who lease your land might "flip" the Haynesville Zone, etc. I told you incorrectly the name of the GEL Well which has been non-productive for years, but they have now sold the lease. It was named McNeely and I said Magee as it is an old long gone one. I MEANT MCNELLY. I know those Burgess people lived there. Like I said I am almost positive your ancestor taught Sunday School or years and I still remember things he told us. LOL
They were a very dedicated Christian couple with many children, and they would go clean the church, clean the grounds, etc. (all free of course), and we all called them Uncle and Aunt half the time but they were not relatives of ours. Oh yes, he almost got me in trouble with my parents. LOL I have been told that the Attorney Price in Center has been good with the minerals there. I helped some families gather up proof of ownership, tax records for fifty years, etc. as they had been claimed by others, etc. and then I located Price's number and other info, and they used him to verify, record, and whatever a lawyer would do to complete our endeavor, and they felt that it was easy and reasonable. They had the proper documents needed and it was settled rapidly. You might add this number to your records as XTO is growing there. OWNER RELATIONS INFO NETWORK 1-866-886-2613. They are located at 810 Houston St. , Fort Worth, TX 76102. I spoke with a Mr. Lewis who is working to correct a Division Order for me. A mistake dating back to 2007 was noted, and he is, I believe, being very cooperative. You are wise to be learning and mineral management is important as I have been able, thus far, to take care of things which others in our unit did and probably never will know about. Every unit needs a close observer and assist the company when a promlem exists. Usually, the companies are very active, but these old units there at Joaquin have had a lot of change, and I hope we have change in November!!!!
CHANGE IS THE ONLY THING THAT REMAINS CONSTANT.

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landownerPermalink Reply by MARG on September 14, 2010 at 19:01

Jane, recently, I found unclaimed money on the TX Unclaimed Money Fund when my cousin and I were searching for her royalties from a deceased family member and she had not taken time to complete her business. You might want to check the free fund. It is Texas Unclaimed Property. I hope you enjoyed your visit to the land and Center. I was told that someone I know had the old home in good shape and that some were going there to stay at times.

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