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Permalink Reply by Skip Peel - Mineral Consultant on June 20, 2014 at 3:40

Max, to avoid confusion it is best to post some basic information such as the state where the minerals are located and, if known, the section-township-range.  Without the s-t-r it is difficult to predict whether your lease will expire, be drilled or have the extension option exercised.

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Permalink Reply by Thomas C. McKowen, IV on June 20, 2014 at 4:04

Absent specific language, normal prescription rules would apply.  You could include language that the mineral rights would terminate with the lease.

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Permalink Reply by Max on June 20, 2014 at 5:53

The property is located in Lincoln Parish 8-18W-18N.  This is south and west of present drilling by Wildhorse in Township 19 where they've hit the bonanza. 

There is a joining Unit with a producing well Northwest of this section, 6-18W-18N and 31-18W-19N.  Also, there is a well in 9-18W-18N and a new one in Section 10, 18W-18N, both due east of this section.  Nothing to the west.

There has not been a unit formed containing section 8 as far as I know...Max  (will find out more info)

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Permalink Reply by Skip Peel - Mineral Consultant on June 20, 2014 at 6:01

Max, double check that township.  There are no townships in the state with a Range of 18W.  And Range 8W is not in Lincoln Parish.

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Permalink Reply by BirdDawg, plain ole' idiot on June 20, 2014 at 13:33

Max your property is in T18N-R4W. And as far as what happens with your interest, it depends on how you word your sale.  About 3 miles east of you I just talked to a owner that was offered $15,000 per acre for just his 1/4 Royalty for Three Years, and only three years. This is very near where two people got killed last night from some sort of pressure buildup/blowout..  Every limited info right now on the problem.  The problem with your area is no production.. Huge production is in the vicinity. It would make a huge difference in the value if production happens. 

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Permalink Reply by Skip Peel - Mineral Consultant on June 20, 2014 at 14:50

Dawg knows.  Thanks for the clarification..  Don't be a stranger.

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Permalink Reply by Max on June 21, 2014 at 4:36

Thanks BirdDawg, mind fog has begun to be my friendly guest every morning. 

We've had mailings and calls, each offering different amounts, but this outfit is offering $1500 for no production.  We watched back in the 1980's when offer's came in and some people took them and pocketed $$$ and got their mineral's back from no production and dry holes.  

That's the gamble...but thanks for the heads up on producing offers on royalty's.  We've had offers for $300, for all the minerals! 

I think I'll call and talk with them to see what they're up to.

Max

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Permalink Reply by BirdDawg, plain ole' idiot on June 21, 2014 at 5:00

Good luck Max

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Permalink Reply by Skip Peel - Mineral Consultant on June 21, 2014 at 12:59

Max, Cortez is quite active in making offers to acquire mineral rights and leases.  I've received a number of inquiries concerning Cortez over the last thirty days or so.  Yours is the third area where I have heard that they have made offers.  Those areas are widely scattered.  That's somewhat unusual.

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