Replies to This Discussion

Permalink Reply by Mark Gray on July 15, 2008 at 14:33

Please explain why it is not "financially feasible". Seems if they only pay bonuses and royalties on 51% of the land, and then stiff the remainder that didn't sign up they would be way ahead. At least that is the way some have made it sound when they force pool.

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Permalink Reply by Randy on July 15, 2008 at 14:41

No, unleased interests get their share of production, just after payout is reached. They get no interest in the unleased property. When you are "force pooled" then you get your full 100% royalty minus deductions after the operator has recouped all of their investment.

Randy

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Permalink Reply by MTA on July 15, 2008 at 15:01

What is the easiest way to find out the names of property owners in your section?

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Permalink Reply by insomniacnla on July 15, 2008 at 15:03

Call your tax assessor's office and ask for a plat map of your section. They may tell you some of the names over the telephone or you can visit the office in person.

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Permalink Reply by Kassi on July 15, 2008 at 15:30

The plat map will have the owners of each lot in the section listed on it. The tax assessor can also give you a print out with the names and addresses.

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Permalink Reply by Foxiecajun on July 15, 2008 at 17:02

You can get a map of section with all property owners and lots on it at the Tax Assers office. Subdivisions you cant read the names. Have to have a print out of each assesment

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Permalink Reply by Les Bamburg on July 15, 2008 at 16:22

Randy, I just suggest not to refer to as royalty because it is actually production or revenue. Royalty is only paid to a lessor or someone that has leased their mineral rights.

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Permalink Reply by Mark Gray on July 16, 2008 at 0:36

That still does not answer the question of why it is not "financially feasible" to only have 51% of the property under lease.

Is it because eventually unleased property owners would receive too large a piece of the pie?

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Permalink Reply by Randy on July 16, 2008 at 11:45

Because the operator can make "zero" dollars off property that isn't leased. Therefore they are drilling for no revenue.

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Permalink Reply by Kassi on July 15, 2008 at 15:31

Revised Statute 30 sec 10:
Agreements for drilling units; pooling interests; terms and conditions; expenses

A. When two or more separately owned tracts of land are embraced within a drilling unit which has been established by the commissioner as provided in R.S. 30:9(B), the owners may validly agree to pool their interests and to develop their lands as a drilling unit.

(1) Where the owners have not agreed to pool their interests, the commissioner shall require them to do so and to develop their lands as a drilling unit, if he finds it to be necessary to prevent waste or to avoid drilling unnecessary wells.

(a) All orders requiring pooling shall be made after notice and hearing. They shall be upon terms and conditions that are just and reasonable and that will afford the owner of each tract the opportunity to recover or receive his just and equitable share of the oil and gas in the pool without unnecessary expense. They shall prevent or minimize reasonable avoidable drainage from each developed tract which is not equallized by counter drainage.

(b) The portion of the production allocated to the owner of each tract included in a drilling unit formed by a pooling order shall, when produced be considered as if it had been produced from his tract by a well drilled thereon.

(c) Repealed by Acts 1984, No. 345, §2, eff. Jan. 1, 1985.

(2) In the event pooling is required, the cost of development and operation of the pooled unit chargeable to the owners therein shall be determined and recovered as provided herein.

(a)(i) Any owner drilling or intending to drill a unit well, including a substitute unit well, on any drilling unit heretofore or hereafter created by the commissioner, may, by certified mail, return receipt requested, notify all other owners in the unit of the drilling or the intent to drill and give each owner an opportunity to elect to participate in the risk and expense of such well. Such notice shall contain:

(aa) An estimate of the cost of drilling, testing, completing, and equipping the unit well;

(bb) The proposed location of the unit well;

(cc) The proposed objective depth of the unit well; and

(dd) All logs, core analysis, production data, and well test data from the unit well which has not been made public.

(ii) Such election to participate must be exercised by mailing written notice thereof by certified mail, return receipt requested, to the owner drilling or intending to drill the unit well within thirty days after receipt of the initial notice. Failure to give timely written notice of the election to participate shall be deemed to be an election not to participate.

(iii) Another initial notice must be sent in order for the provisions of this Subsection to apply if the drilling of the proposed unit well is not commenced in accordance with the initial notice within ninety days after receipt of the initial notice.

(b)(i) Should a notified owner elect not to participate in the risk and expense of the unit well or should such owner elect to participate in the risk and expense of the unit well and then fail to pay his share of such expenses within sixty days of receipt of detailed invoices, the owner drilling same shall, in addition to any other available legal remedies to enforce collection of such expenses, be entitled to own and recover out of production from such unit well allocable to the tract belonging to the nonparticipating owner such tract's allocated share of the actual reasonable expenditures incurred in drilling, testing, completing, equipping, and operating the unit well, including a charge for supervision, together with a risk charge, which risk charge shall be one hundred percent of such tract's allocated share of the cost of drilling, testing, and completing the unit well.

(ii) Any owner not notified shall bear only his tract's allocated share of the actual reasonable expenditures incurred in drilling, testing, completing, equipping, and operating the unit

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Permalink Reply by Les Bamburg on July 15, 2008 at 16:46

Kassi, you didn't include an important part of the regulation:

"(e) The provisions of Paragraph 2(b) above with respect to the risk charge shall not apply to any unleased interest not subject to an oil, gas, and mineral lease. Notwithstanding the provisions of Paragraph 2(b) the royalty owner and overriding royalty owner shall receive that portion of production due to them under the terms of the contract creating the royalty."

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Permalink Reply by Kassi on July 16, 2008 at 11:49

Sorry, I did not realize it did not allow all of the revised statute to print in the comment. Was too distracted by kids and dogs to read it after I posted it! That was the most important part too!

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