TEXAS ALERT: Mineral Rights threatened by Tx HB 100 -forced pooling will limit your ability to negotiate a good lease.
Please read Up on this bill at http://www.tlma.org/legislative.htm
The Forced Unitization Bill, HB 100, has been set for a hearing at the House Energy Resources Committee this Wednesday, March 13. This is an extraordinarily bad bill for landowners and mineral interest owners. It is now time to let committee members know this legislation will take away our property rights and that they should vote NO on the HB 100. The bill would take away landowner rights when negotiating oil and gas leases in several different ways; the main talking points and email addresses for committee members are below:
FIVE REASONS THAT HB 100 IS BAD FOR LAND AND MINERAL OWNERS:
1. It only requires 70% approval of the total working interest, not working interest owners, which can eliminate any leverage small landowners may have to protect their interests. Meaning if 1 person owns large acreage that makes up 70% of the land in the unit, he can agree to pool even though 30 guys who own small lots don't want to.
2. It allows the Commission to issue a forced pooling order before the operator has ever asked the royalty interest owners for approval.
3. It leaves no real choice. If an owner makes the decision to not ratify the forced pooling order, the operator can withhold from the owner’s proceeds up to three times what the owner would have paid if he had ratified.
4. It gives wide discretion in how proceeds are distributed between landowners, allowing the use of any factors “as are reasonably susceptible of determination” when deciding what a tract’s fair share of the proceeds should be.
5. The current system of leasing oil and gas mineral interests has withstood the test of time for over 100 years. Things are working in Texas. Those who want this bill want to change the law so they can make more money and sacrifice private property rights at the same time.
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Replies to This Discussion
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Permalink Reply by intrepid on
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Small tract owners, especially, do not need this bill to pass. It will diminish your ability to negotiate a good lease for your minerals.
Contact each one of these committee members and ask them to VOTE NO ON HB100!
Email addresses of committee members:
Chairman Jim Keffer (R – Granbury) james.keffer@house.state.tx.us 512-463-0656
Vice-Chair Myra Crownover (R – Denton) myra.crownover@house.state.tx.us 512-463-0582
Rep. Lon Burnam (D – Ft. Worth) lon.burnam@house.state.tx.us 512-463-0740
Rep. Terry Canales (D – Corpus Christi) terry.canales@house.state.tx.us 512-463-0426
Rep. Tom Craddick (R – Midland) tom.craddick@house.state.tx.us 512-463-0500
Rep. Tony Dale (R – Cedar Park) tony.dale@house.state.tx.us 512-463-0696
Rep. Phil King (R – Weatherford) phil.king@house.state.tx.us 512-463-0738
Rep. J.M. Lozano (R – Kingsville) jm.lozano@house.state.tx.us 512-463-0463
Rep. Chris Paddie (R – Tyler) chris.paddie@house.state.tx.us 512-463-0556
Rep. Ralph Sheffield (R – Temple) ralph.sheffield@house.state.tx.us 512-463-0630
Rep. Gene Wu (D – Houston) gene.wu@house.state.tx.us 512-463-0492
It is imperative you send your comments before the committee hearing on Wednesday.
Ask them to Vote No on the HB 100!
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Permalink Reply by rick linkenhoger on
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I hope they pass it! I'm sitting in a section that has two little 15 acre anti-oil owners who won't lease because they say it's bad for the enviorment! It's not fair to me or the other mineral owners who want and need the production! I will email them to approve it.
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Permalink Reply by adubu on
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Rick -- operator can just leave those 30 acres out if not drill site so should have no effect on your minerals if operator drill well
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I talked with Cimarex and they said that the way the holdouts are positioned that it would be hard to form a drill trac! Said that they were not going to lease no matter what because oil is bad for the enviorment! So be careful what you wish for! You would like HR100 if you were in my shoes!
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Let me add one more thing that has not been part of this blog (Which should have been!). In the old days everything was vertical drilling, conventional oil wells (Didn't need a lot of acreage). Now it's all unconventional horizontal along with fracing (Need a lot of acres). There's times especially when you get closer to cities that there are multiple mineral owners! Do all the mineral owners think a like? No they don't! So, do you want to not participate under a horizontal drainhole because your next door neighbor is from California and only believes in green energy? I say No! My Dad always told me a little of something is better than a lot of nothing! Think about that.
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Permalink Reply by adubu on
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Rick -- think you have misunderstanding about force pooling unitization of multiple thousands of acres in to one large unit to improve recover vs the standard size oil unit of your 30 acres holdout guy when oil unit can be as small as 40acres in Texas. If you have small amount of undivided mineral interest in same tract then yes you have problem I don't think this HB100 would solve your problem. Operator could drill and leae them out or they could just be ULMO in unit
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Abubu...I know how it works, I have mineral interest in 3 different states and 8 different counties. Like I said what you are preaching to me now would have been in line 8 years ago, now it only hurts mineral owners! I'm sure the liberals would like to see HR100 defeated! It's another tool to see drilling stopped! Please don't play into the hands that this is a Big Oil Bill! It's not! If this passes it only secures our mineral rights! Don't let the libs make you feel like you won when you lost! Texas has always been a pro oil state and if it's in your interest that's why it's up for a vote! This is all about small mineral interest owners keeping drilling from happening!
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Also Abubu....What you said about force pooling made no sense! You can't drill a horizontal drainhole on 40 acres and if you try it you will loose your butt! Are you in the oil and gas industry or are you just a blogger? You act like you do this for a living but from what I've seen you know nothing! Where did you get the pic of the oil jack? Internet? Please tell me where your expertise comes from, are you a mineral owner? I can read right thorugh BS! I will be happy to discuss anything you like concerning the oil and gas industry from leasing to well logs, you pic the topic!
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Whoever wants to keep the Liberals out of their mineral interest should call their Representatives tomorrow to support HR100.
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Permalink Reply by Bosco Ritchie on -
Liberal? Oklahoma has had forced pooling for years...hardly a liberal place
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Permalink Reply by adubu on
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Rick-- your personal stupid comments are getting out of line. I m as conservative strong right as you can get politically. Big Oil sponsor of this bill is not Big Liberals. As far as the oil rig picture it was placed by Keith the owner of this web site the same way you got the blue flame picture that the newer members have . I simple have not chose to upload a picture otherwise. Yes a horizontal well requires a unit larger than 40 acres and spacing of these well are variable in size depending on formation drilled by RRC Rules. That was not point of my comment. You ask about my name adubu is "AW" . Yes I m a mineral owner. Are you using the name Linkenhoger to say your the family that has about a 10,000 acre Ranch in Texas to impress us? If your so knowledgeable go to Austin and testify for the Bill. If this bill is so good tell me why the State of Texas desires their mineral/lands to be Exempt from this bill? I will have no further comment back with you for I can not debate stupid comments I guess you have same thoughts about intrepid also?
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abudu...I think your a fraud! running down tea party members in your blogs! Don't even reply to this because I have no interest in whatever you are trying to promote! Whatever it is it's not in the interest of the members on this site! I don't know where you come from but you an English class bad!
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