Replies to This Discussion

Permalink Reply by Jimburgess on August 6, 2012 at 8:47

A question for some experienced LANDMAN  to answer.........pertaining to leasing.  The answer

may be obvious but not to me.........If one wants to exclude theLSBD formation from a lease and the formation

depth varies  from one tract to another .....how would you word it......other than simply saying" drilling rights do not extend to LSBD formation".  Jim B.

Permalink Reply by Skip Peel - Mineral Consultant on August 6, 2012 at 9:27

JIm, depth definitions can be tricky.  I would not attempt to create one without the help of an experienced O&G attorney.  AR is different from LA in that they do not use reference wells with publicly available logs to delineate the target depth of a formation in a drilling unit application.  Even those who deal with O&G leases on a regular basis are prone to mistakes when attempting to word a depth definition that will stand up in court.  I know of just such a suit.  The lessor created a depth definition to lease the Haynesville only but the lessee/operator now claims that the lease includes the Bossier Shale.   Those crafting the depth definition did not take the Bossier into consideration or they would have defined the zone differently.

Permalink Reply by Jimburgess on August 7, 2012 at 11:28

Skip......Thanks for the advice. 

Permalink Reply by tony allen on August 20, 2012 at 18:44

Skip,

Have you seen this kind of problem with title disputes in La. or is this mainly an Ar. problem?

http://www.arkansasbusiness.com/article.aspx?zone=AB_ENEWS_Energy&a...

 

Permalink Reply by Skip Peel - Mineral Consultant on August 21, 2012 at 2:07

tony, I don't see a mention of title disputes in the article.  In general all energy companies of any size have their own legal department and also utilize local law firms to handle litigation.  It's part of the business and the cost is factored into everything they do.  As to AR title it can get far more complicated than LA because AR allows the mineral estate to be severed from the surface estate in perpetuity and LA has 10 year prescription.  I'll try to be more specific if you can provide some details.

Permalink Reply by Bill Dailey on August 7, 2012 at 4:00

North, friend tells me he leased small amount of acreage near Emerson (Columbia County) in mid-July for $300/acre, 20 percent.  4 yr/4yr.  Don't know amount per acre for the 4 option years.  Triad.

Permalink Reply by Bill Dailey on August 7, 2012 at 18:00

Further to my previous post, a correction:  Term was for 4 yr./3 yr., not 4 yr./4 yr.  And option years were $350/acre.

Permalink Reply by Joe Deerhunter on August 22, 2012 at 5:26

Bill, I'd be interested in knowing who the land man was on that July lease.  We still have some bits and pieces to lease in that area.  Our previous land man got reassigned elsewhere after the Roberson well pipeline deal evaporated.  The terms sound pretty similar to what our last lease with Triad (for SWN).

Permalink Reply by RR on August 22, 2012 at 6:55

Has anyone heard of any leasing in Union County? I own some land just north of Urbana.

Permalink Reply by Robert Carr Head on August 22, 2012 at 10:44

I leased some in the western half of Union County back in March. From the size of the tracts I had they were starting on their infill leasing . Several small tracts.  I am not sure how far east of El Dorado they have gone.  Good luck to you.

Permalink Reply by RR on August 22, 2012 at 15:23

RCH

Thanks.  Yeah, I only have two forty acre tracts myself.  Haven't been too worried about it. Hope they'll hit a gusher and bonus money will go up some.

Permalink Reply by Bill Dailey on August 22, 2012 at 11:36

Joe, shoot me an e-mail: bill.dailey@att.net