Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2014 at 6:27

UMI's should request quarterly reports from the operator as provided by in LA mineral law.  If the well has paid out and the operator has filed for their severance tax exemption, the well cost will be covered in the report form in the database.

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Permalink Reply by obed w odom on July 28, 2014 at 6:17

If the co-owners did not receive a release, shouldn't they be getting royalty payments from the well? I would think they would be in a better position than Mr. Funk.

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Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2014 at 6:37

Maybe.  We really don't have sufficient facts to form an opinion.  The new law alluded to earlier in this thread would make it easier for lessors to receive royalties when there is a legal dispute between a Working Interest (their lessee) and the well operator.  Did the other co-owners also receive releases but simply failed to file them in the public record?  Is the mineral interest small in size and the individual owners have fractions so small that they don't care to incur costs to get the situation straightened out?  Does the back dating of the one release create an obligation on the operator to pay for past production?  Does the three year statute of limitations apply?  Does the operator have any obligation other than what the state requires for UMI's in producing units?  This is all headed down a path where conjecture without facts is a waste of time and depending on those facts may be sufficiently complex to require an experienced O&G attorney and possibly litigation.

IANAL

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Permalink Reply by Two Dogs, Pirate on July 28, 2014 at 12:39

James Funk, Jr.is a 1/2 interest owner in some of the tracts they own, there are several and encompass a large area. If this holds true for this tract then he has 40 acres of a 80 acre tract. Well worth the price of an O&G Attorney. Mr. Funk,is one of my Lessors and when Aubrey announced the Haynesville Shale around Easter of 2008, I called Mr. Funk and told him that he needed to watch out for snakes that were crawling around in the area.

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