Replies to This Discussion

Permalink Reply by b. davis on October 30, 2008 at 6:52

My letter said there WILL be a meeting. Check yours again and make sure....and let us know.

Permalink Reply by fngrsxnpd on October 30, 2008 at 9:34

My letter said there will be a meeting.

Permalink Reply by Mrs. Sunshine on October 30, 2008 at 17:25

The letter that I am Talking about is dated October 27, 2008. This is what the paragraph says:Pursuant to the Rules of Procedure, pre-application notice was given; howerever, no request for the conference was received. Therefore, the conference tentatively scheduled for November 11, 2008, WILL NOT BE HELD. This is the second that I have received. Check your dates and let me know.

Permalink Reply by Les Bamburg on October 31, 2008 at 2:56

MS, there was more than one meeting scheduled for Nov 11th. Can you provide more information about which field and sections your letter adrressed?

Permalink Reply by Mrs. Sunshine on November 1, 2008 at 9:09

Les B, Here is the list : Hosston Formation, Reservoir A
Cotton Valley Formation, Reservoir A
Haynesville Zone, Reservoir A
Carroll Creek Field
Red River Parish, Louisiana
I really don't understand any of this letter. Will I be getting a leasing offer and bonus if they drill on property joined to my property? I was not contacted by anyone the whole time the land leasing was going on but my neighbors were. I'm seeking any information that I can get.

Permalink Reply by Les Bamburg on November 1, 2008 at 19:40

MS, thank you for the information. The conference with EnCana for the Liberty Field is still planned for November 11th at 10:30 am. You may be able to attend that conference just to hear any topics discussed provided they are not checking names at the door.

There is no guarantee or requirement that you will receive a leasing offer but you could contact EnCana and determine their interest in leasing your land. If your land is not leased you will become a carried working interest owner in the unit for your section. Your ownership interest would be your acreage divided by 640 which is the acreage in one section. Example would be 1.56% if you owned 10 acres. The operator will keep your share of production from any well drilled in your section to pay for the cost of drilling the well plus operating cost. Then you will receive your share of revenue from production less operating expenses.

Permalink Reply by msfva on November 2, 2008 at 2:43

Les B,
What are the rules for what costs the operator can attribute to the cost of the well? Are they written down somewhere? Do you have any experience with this? Obviously, a shady accountant could make the cost of the well double or triple, by attributing unrelated expenses to the cost of the well. How would the landowner know when the well is paid off?

Permalink Reply by Les Bamburg on November 2, 2008 at 9:40

Msfa, I believe the operator would issue payout statements each month (maybe quarterly) that indicate the payout status of the well including any cost, production and revenue information. The unit operating agreement would specify allowable cost and the operator should provide a copy of the agreement. The carried working interest owner can question any costs but this is the headache of being a working interest owner.

I only have experience of working for a company that had non-operating interests in various properties. Also have farmed out mineral interest and non-consented wells both of which require the operator to generate monthly payout statements.

Permalink Reply by Mrs. Sunshine on November 2, 2008 at 10:57

Thank you Les B for the information. So Are you saying that the mineral leasing has completely stopped? Some are saying that it will start back after the first of the year. I think that it is very unfair to the people who have small acreage of land. A lot of people was dependig on the lease bonus to prehaps get their head above water. But it looks like the most people that got the bonuses where people with a lot of land and money. Those that didn't have alot of money and got paid where blessed, and thats the bottom line. Everything thats going on now is just a big HEADACHE!!!

Permalink Reply by Grayling on November 2, 2008 at 11:21

Mrs. Sunshine
There are a lot of big land owners like me who never got a lease offer and we are in the shale play. I don't understand why you think we all have a lot of money. I can remember very well the o&g companies passing us by and giving bonuses to the people with one or two acres or less. That was ok with me because I assumed they would get to us sooner or later but it never happened.

Permalink Reply by Les Bamburg on November 2, 2008 at 14:54

MS, I did not mean to imply leasing has stopped, only that you are not guaranteed of receiving a leasing offer. Again, you can contact EnCana or other companies to determine their interest in leasing your land. You can lease your land at any time, even after it is force pooled or after a well is drilled.

Permalink Reply by Mrs. Sunshine on November 6, 2008 at 5:53

Thanks Les B, but guess what? I just got another letter in the mail today from Liskow& Lewis about force pooling and the same stuff thats on the other letter that I got but they want to create 10 drilling and production units in the Gahagan Field, Red River Parish. They have a meeting tenatively scheduled for 10 a.m. Thursday, December 4, 2008 at the Best Western Natchitoches in the conference Hall. How many of these letters will I get?

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