Replies to This Discussion

Permalink Reply by dbob on November 20, 2010 at 13:49

I suspect you'll get further advice from some of the other folks here. First, don't cash or sign anything until you've reviewed it and understand, probably with the advice of an oil and gas attorney. Particularly if a lease hasn't been signed yet you are in a good position to add reasonable conditions. The bonus payment sounds low to me, but others here canprovide more insight into market rates.

Permalink Reply by jffree1 on November 20, 2010 at 13:58

DeeDee, can you tell us the survey in each county? I'm with dbob... that offer sounds low. But it would depend on where you are in either county, also.

Permalink Reply by DeeDee on November 20, 2010 at 14:34

Shelby County Interest is in J. Harrison Survey, A-306 . I just read the following info from the Nacogdoches online drilling news site: Shelby County

The Tar Heels DU Well No. 1H will be drilled 10 miles southeast from Shelbyville in the Carthage (Haynesville Shale) Field. XTO Energy Inc. will drill this well to a depth of 13,400 feet in the Harrison, J Survey, A-306.

San Augustine County Interest is in the Hiram Eddee Survey, A-463 and Clabe Greer Survey A-456.

I thought the offers were low as well, but have been unsuccessful in finding an attorney to return my calls.

Permalink Reply by DeeDee on November 20, 2010 at 14:39

A landman called one of my brothers and told him that we would be left out if we didn't hurry up and sign. I believe that is a scare tactic based on my readings from this great site and other sites. Right?

Permalink Reply by Jan Childress on November 20, 2010 at 14:44

Sorry for your loss DeeDee. My advice is to educate yourself before signing or cashing anything. This site with all its discussion groups has a wealth of information available to you. Sometimes it can be a bit intimidating but I have found the individuals to be VERY generous with their time and expertise. Above all, remember there is no such thing as a dumb question. Many of us started out exactly the same way with inherited mineral rights jointly owned with other family members. Relax and take a deep breath. Give as much detail as you are comfortable giving so that other members can share their knowledge with you. Good luck!

Permalink Reply by DeeDee on November 20, 2010 at 14:56

Thanks Jan!!!! That really goes a long way with me. My Mom passed unexpectedly in July and the landman already knew about in August. Go figure. I felt it was too soon for us to make any decisions as we were just entering the grief process. So, I have been on the site since then reading and studying. It just takes some cajoling to get my brothers to trust me on being patient and prudent with all of this.

Permalink Reply by jffree1 on November 20, 2010 at 15:40

DeeDee, the Tar Heels well is being drilled now. Here's a link to the well unit plat.
http://webapps.rrc.state.tx.us/dpimages/img/900000-999999/PR0000908...

If you know where your minerals are located in J. Harrison you can look at the plat and see if you are anywhere close.

Don't let anyone hurry you to sign anything. Paloma, so far, has not drilled a single well even though they've been leasing in Shelby quite a while now. It's funny though... I'd swear there was a discussion on the Shelby board not too long ago where several people were talking about Paloma offering 5K/acre and 25%. That's sure a big difference in what you say they are offering now. You've waited this long. I think I'd wait at least until January and see if the offers don't improve. In the mean time, keep reading and learning all you can. If you don't get a call from any of those lawyers, several people have made recommendations on this board and on the main page fairly recently.

In the San Augustine surveys, Cabot has drilled a Jame Lime well in Hiram Eddee, A-463. Wheeler Gas Unit #1H has been producing since last April.

http://webapps.rrc.state.tx.us/dpimages/img/600000-699999//PR000063...

Permalink Reply by DeeDee on November 20, 2010 at 16:21

@jffree...Where do I begin to find out where our minerals are located? Is there somewhere online to locate the info or will I need to drive to Center and get copies of a deed or something? Wow, what are the odds? Wells in both areas of concern. I had read somewhere as well regarding companies offering 2K and up, but assumed that maybe the drop in market was the reason for the low ball offer from Paloma. This is all very intriguing and I will more than likely take your advice and wait until January before making any decisions.

Thanks for the link . I'm searching now lawyer recommendations:)

Permalink Reply by Jan Childress on November 21, 2010 at 14:04

Dee Dee I was so pleased when you said, "this is all very intriquing." I too find it absolutely fascinating and even if you find a good O&G lawyer, don't stop your own research. The more you know, the more you will get for your dollar when seeking legal advice. You go girl!

Permalink Reply by leo bishop on November 20, 2010 at 23:22

I wastold that Paloma has shut down their leasing operations in Shelby and San Augustine as of 11/18/2010...

Permalink Reply by sgt whitwell on November 21, 2010 at 6:11

Maam,

Find a trustworthy o&g lawyer.

do not trust what any landman says, his job is to sign you up at the maximum profit for his company, and maximum bonus for himself. his tactic of we would be left out if we didn't hurry up is exactly as you see it - a scare tactic.. unfortunate unethical behavior.

Permalink Reply by ogmladvisor on November 22, 2010 at 15:53

Sgt. Whitwell:

You have bad information. A mineral owner can absolutely be left out (no bonus, no royalty, no nothing), it is not a scare tactic, it is a fact. And it happens all the time in Texas.

Operators can pool tracts into their units as long as they have at least an undivided interest in that tract. Meaning if there are two mineral owners, owning 50% each, and one signs a lease and one does not sign a lease, the tract can still be pooled. If the tract is non-drillsite, then the person that executed a lease will enjoy bonus and royalty, and the person that did not sign will never see a dime (we can't pool the lease without a pooling provision, and we don't have a pooling provision without a lease). Since I am a landman, I'm sure you think I'm lying to you....so I'll back it up with case law - Superior Oil vs. Roberts (01/05/66), Supreme Court of Texas.

ogmladvisor

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