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Permalink Reply by Skip Peel - Mineral Consultant on March 18, 2014 at 2:05

If you own minerals under a producing lease well or unit but are not leased, in LA you are a UMI (Unleased Mineral Interest).as opposed to a Working Interest.  A WI receives an AFE (Authorization For Expenditure) to cover their proportional share of costs to drill, operate and plug & abandon a well.  Please clarify your status and post the state where the particular mineral interest is located.

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Permalink Reply by Seimond S Evans on March 22, 2014 at 2:59

my family never signed a lease but some of our family members did in 1984  the wells are in the Terryville field in Lincoln Parish.  is there a certain percentage rate a person that is UMI is suppose to receive also do past owners of the company owe us back pay?????????

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Permalink Reply by 1kw6x71km1v37 on March 22, 2014 at 5:05

You are not bound by any lease other family members signed unless you inherited or were gifted mineral rights already leased. Again, we need to know how many acres are in the well unit and the serial number of that well.

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Permalink Reply by Tom on March 18, 2014 at 5:35

I own 1 acre in well 241125 and have never signed a lease or received a royalty check.

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Permalink Reply by Skip Peel - Mineral Consultant on March 18, 2014 at 5:37

You may not own your minerals.  If you do then you are an Unleased Mineral Interest in the unit and are due no payment until the well recovers its cost to drill, complete and operate.  241125, like many Haynesville Shale wells, will probably never payout at current prices.

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Permalink Reply by 1kw6x71km1v37 on March 18, 2014 at 8:40

Tom,

Did you ever sign anything from the operator, such as a division order?

How many acres are in the unit?

That well was producing gas as of the end of last year, over 21 million cubic feet in December alone.

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Permalink Reply by Skip Peel - Mineral Consultant on March 18, 2014 at 8:49

cs, December production was 21,600 mcf or somewhere in the neighborhood of $75K gross.  After royalty and lease operating expenses, less than $50K net.

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