Replies to This Discussion

Permalink Reply by RJ on February 23, 2012 at 14:38

Skip, So is it a normal practice for the oil companys to issue division orders that does not match your lease acres? From what I have heard so far Petrahawks section 30-17-15 Division orders were exact matches to the land owners leases. CHKs are not. Does this community lease they say we have make a difference in the numbers some how?

Permalink Reply by Larry L on February 23, 2012 at 14:50

From my understanding your acreage will be accurate to the six decimal places that is stated on your lease. That can not vary. The only thing that can vary is the APPROXIMATE 640 acres in your section (more or less). Once they have determined the specific acreage of your section (or unit) then they can determine out to six or eight decimal points your "unit interest". That is the figure that is important

To understand "Rules for Significant Figures and Decimal Places" read this http://mathforum.org/library/drmath/view/58335.html

Permalink Reply by RJ on February 28, 2012 at 0:54

Larry, Did CHK say when they were going to be sending out the section 32 division orders. IM going to wait until I have them all before I send them in.

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Permalink Reply by Larry L on February 28, 2012 at 0:59

Here is what she said Feb 23......

There is one lessor who is a part of the community lease that owns a 5 acre interest in Section 32.  We are currently working to revise this unit to reflect this community lease with an interest in Section 32-17-15.  Once the revision has been completed, you will receive a division order with your proportionate share in Section 32. 

 

Thank you for your patience.

 

Thank you,

 

Donna King, CDOA

 

I also will wait to see that all three add up. I am confident that this time they are triple checking their details.

Permalink Reply by RJ on February 28, 2012 at 7:15

 Today I also got an e mail from CHK about the 32 D.O.s I ask when they thought they would be sent. They said unable to advise when they will be sent. So I guess we wait and see. At least they are working on it.

Permalink Reply by Interested Amite County on February 22, 2012 at 15:25

What does that mean? 

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2012 at 15:04

RJ, quite common.  The acres in the lease are based on deeds and other instruments in the public record (parish Clerk of Court records).  Even recent conveyances may contain old property descriptions that have been reused down through the chain of title.  Many older surveys are inaccurate to some degree. 

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Permalink Reply by RJ on February 24, 2012 at 1:26

OK but would you not think they would use the lease data that they paid you for that has the acres on it?

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Permalink Reply by Skip Peel - Mineral Consultant on February 24, 2012 at 2:42

No.  The level of due diligence involved in offering a lease is less than that involved in preparing the DO opinion.  Keep in mind that the industry still operates in many ways on tradition and over many decades a large percentage of wells turned out to be dry holes.  It makes no business sense to expend a lot of time and expense on the front end when an operator doesn't know if a well will be productive until it is drilled and completed. 

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Permalink Reply by RJ on February 24, 2012 at 7:41

Hmm ok. WEll have you ever seen this problem being talked about on here before? And I have to keep going back to Petrahawks D.O.s. They have been spot on not 2% low. I feel if Petrahawk can do it then CHK should do it. Will wait this one out and see what they will do. Seems a mess to me.  thanks Skip your knowledge is legend!

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