Replies to This Discussion

Permalink Reply by Nobody on March 19, 2012 at 11:48

RJ, were you in the Greenwood Hills group that signed with JPD Energy in 08

I was and I believe Mr Larson was one of the Group leaders

I am sure CHK is doing this Community Lease to everyone in that group

I called CHK today and told them I should be included in Section 32 not 27

( My property is across the St from the well in 31 and closer to the well on Shirley Francis "32" than the well on 70th St "30")

They could not answer my question, forwarded my call and I wound up with a Voice Mail.

I had to leave a message asking for clarification and I am sure I will probably never hear back.

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Permalink Reply by RJ on March 20, 2012 at 5:17

Yes the same group.This entire thing would not bother me if someone could explain what is going on.However it seems no one understands what a Community lease is or can explain it. Are we the only ones this has happened to so far? Is this the Norm? who does it Benefit? How does it benefit? Why no explanation?How does this impact the People who sighned with petrahawk and are in the Adams well 100% While we are split 3 ways between 31,31 and 32. Chk even has a person on this site Katie) and they will not respond on the subject of Community lease. When people wont answer then I suspect its not good or the norm.

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Permalink Reply by Katie McCullin on March 20, 2012 at 5:32

Hey RJ - I'm working to get a basic explanation of a community lease to post on the site. This isn't a subject I'm very familiar with, but I'm working to get you something. I appreciate everyone being so patient. I'll be checking back soon. Thanks!

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Permalink Reply by Nobody on March 20, 2012 at 5:46

This link helps explains it

community lease law

It is all about pooling and unitization

About 1/2 down the page it talks about Joint / Community Leases

It helps CHK keep everyone held by production

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Permalink Reply by DrWAVeSport Cd1 on March 20, 2012 at 6:17

RJ,

http://www.beardenlawfirm.com/Texas%20Oil%20and%20Gas.pdf

G.  The COMMUNITY LEASE:

A  "community lease" occurs when several landowners of adjacent tracts sign a single lease granting mineral rights in the combined acreage owned by all the lessors to a single lessee.  The execution of the lease will be treated as an agreement to pool, and each lessor will be entitled to share in production from the combined acreage.  If the lease does not specify how the royalty on oil and gas produced by the lease is to be allocated among the lessors, allocation will be made on the basis of surface acreage contributed in the unit.  Parol evidence is inadmissible to show that no pooling was intended when the community lease was executed.  Technically, when a community lease is executed, there is a cross-conveyance whereby each landowner signing the leases conveys a fraction of his royalty interest to his co-lessors, receiving in return a conveyance of a partial interest in the co-lessor's royalty rights.  The community lease is the only example in Texas jurispurdence of the court's creating an implied agreement to pool..."

RJ...  Not Louisiana, but a TX explanation.

Don't know how much this helps...  But interesting explanation.

DrWAVeSport Cd1 3/20/2012

If previously posted info, please disregard.

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Permalink Reply by Skip Peel - Mineral Consultant on March 20, 2012 at 7:17

Each lessor is treated as an undivided interest in all three units.  Undivided interest is a fractional ownership in each and every acre pooled in the units.  Example:  If you own one acre of a group lease covering three standard governmental sections (640 acres each) you would own an undivided 1/1920 of each acre which is then multiplied by your royalty percentage to get your decimal participation.

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Permalink Reply by Katie McCullin on March 20, 2012 at 9:37

RJ - I think the members of GHS.com have provided some pretty good explanations, but as promised, here is what I have been given.

 

"The basic overview of a community lease is that the lessors are entitled to a proportionate share of production from any well drilled in a unit containing any amount of the community lease acres according to the terms of their lease."

 

Our Division Order department is working on several of these right now, and I've specifically spoken to them about your situation. If you would like to speak to someone else, you can message me your contact information, and I will have them call you immediately. They are ready to answer any questions you have. I apologize that this has been a bad experience for you and want to do what I can to remedy that. Thanks! Katie

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Permalink Reply by RJ on March 20, 2012 at 10:53

Thanks Katie for the info. All this info from from you and others helps a little as far as the term Community lease is concerned. My lease does not have the word Cummunity in it. But I would bet it does not have to have it. AM I clear on the Cummunity lease? Not really. The future will tell if my concernes were valid. WE shall wait and see.

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Permalink Reply by lee on April 19, 2012 at 1:07

Ha Ha Ha. After 6 months of very productive drilling, my first check was 130 dollars. Another 6 months after that? Nothin. Its all a scam.

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Permalink Reply by RJ on April 25, 2012 at 5:56

Lee from what I have seen you write in the past you have SEVERAL problems!!

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