Replies to This Discussion

Permalink Reply by Jack Blake on June 4, 2011 at 13:27

Yes, Jack Blake would like to hear of anyone getting an override.  That would be sweet!

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Permalink Reply by Joe Aldridge on June 4, 2011 at 16:40

Jack,

I think whatever company this is: They are in a pretty tight spot. I can't understand the co-rep being "hardnosed". Its time to be NICE, VERY NICE. 

Jackie has not said what company this is. That would be interesting to know.

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Permalink Reply by jack on June 6, 2011 at 4:00

Rep is very short when you speak with him--- no face-to-face yet...working the psychological aspect.   I'm told this oil company is very hard to deal with....one of the top 3 out there I believe.   No big secret - just never know who is checking these sites.

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Permalink Reply by jack on June 6, 2011 at 3:56

So Jack sounds like overrides are hard to get?????   I think a landowner not to far from my property with the same situation as mine received a 5% royalty .....is what he said, but I bet he meant 5% override.  Who would agree to 5% royalty?

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Permalink Reply by adubu on June 6, 2011 at 4:17

No way they would pay a 5% override (Same as royalty) -- would be way cheaper to go build new pad site on the other gas unit rather than pay this plus directional drill off this pad. If this well I assume is a H shale well then if good well= 6 Bcf EUR at $5 NG= 30 million in gross revenue. 5% override would pay $1.5 million. NO WAY THEY PAY THAT. I am not for sure they have to pay the land owner for the drill pipe going under your property if so should be ROW similar to pipeline easement per rod bases calculation at most. They for sure will not pay override-- you dreaming & greedy. Now on other hand if they need to repeatly cross your land to pick up oil in tanker truck yes charge per trip is reasonable.

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Permalink Reply by jack on June 6, 2011 at 4:39

Believe me greed here....just don't want to look back and realize they got the best of me.  Maybe they pooled the other guy in the unit and just offered 5% royalties.... Hard to get the exacts out of people.  Alot of us don't understand this stuff.  Don't like to get attorneys involved without trying to work it out first or at least get a good understanding of what they are wanting to do.  Like I said b/f other property getting 10 acre tank and I am getting pad, wells, tanks and seperators. 

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Permalink Reply by jack on June 6, 2011 at 4:56

meant no greed here....just want to be fair for everyone.

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Permalink Reply by Joe Aldridge on June 6, 2011 at 4:44

Adubu,

I think what she is talking about is Eagle Ford oil. Not NG. If you have been following the latest deal with Marathon they paid $20,000 plus per acre for the lease acreage they bought from Hilcorp. I think that deal is in the area of her property. I don't think they will go for a 5% override but may accept a 1% with a minimum per month rental.

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Permalink Reply by jack on June 6, 2011 at 5:02

Yes I am in the SugarKane oil window - Eagle Ford.  I appreciate everyones input.  Just trying to get educated re same.  One thing for sure is that it seems nothing is boiler plate.

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Permalink Reply by Joe Aldridge on June 6, 2011 at 5:05

LOL............... No, when it comes to something like this it has to be hammered out on a case by case basis. Good Luck

Permalink Reply by P.G. on June 6, 2011 at 4:23

How would property taxes be treated where a pad was built...I mean timber land is taxed on use value, residential property is taxed on market value...who would have to pay the property taxes...would it be wiser to just sell the land and retain minerals for the well pad?

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Permalink Reply by adubu on June 6, 2011 at 4:32

You still own land and you pay property tax at low farm or Ag value as you do now. The minerals are separate from surface as is-no difference. I would not sell the land personally.

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