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Permalink Reply by Les Bamburg on July 12, 2008 at 8:21

Mom, I fully understand your frustration and venting. I am sure I have many relatives in NW La in a similar situation that could use some better upfront money. I thnk many landmen or like the used car salesmen of old that use misinformation and pressure tactics to their advantage. In many cases these landmen are contractors and tarnish the image of the industry.

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Permalink Reply by Les Bamburg on July 12, 2008 at 5:31

Shelby, payment of "shut-in" royalties has limited applicability for retaining leases. First, a succesful well has to be drilled in the unit. Second, there has to be some justification for not producing the well such as waiting on a pipeline or permit or lack of market. Third, normally the lease agreement limits the length of time for shut-in royalty payments (for example - five years).

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Permalink Reply by shelby on July 12, 2008 at 11:53

Thanks Les B. I will continue to gather information, and hope to retain it. I am sure it will take some time, and alot of research to even identify the next steps to take on a long journey.
Shelby

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