Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2014 at 3:39

I've received communications from other Union County mineral owners reporting the same.  The Brown Dense page on the SWN website has not been updated since Feb. 28 and the leasehold data is from Dec. 31, 2013.

http://www.swn.com/operations/pages/browndense.aspx

Permalink Reply by Jimburgess on August 16, 2014 at 3:39

Almost 2000 acres up for renewal in May 2014 was passed over.  Another Union County SWN lease

up for renewal in Dec. 2014....SWN will probably pass on that renewal (1300 acres).  My acreage is

in many areas....primarily south of Strong, fairly close to La. line. " Guess we are shit out of luck in Ark."

Jim Burgess

Permalink Reply by L Davis on August 16, 2014 at 4:31

My acreage in west Union County on Hwy 82 and close to the
Columbia County line expired June 30.

Permalink Reply by RAZORBACK on August 16, 2014 at 5:04

I leased 1471 acres to TRIAD for SWN in June of 2010 which they elected not to renew.  My info is SWN is not pursuing any leases in Columbia County, they closed the Lease offic e in Magnolia and the landwoman moved back to Texas.  I have a second lease that is due to expire next year, however SWN has leased some of the properties to Four R Operating Company on which a well has been completed the Lewark 1 in Sec4 T20W-R20W (PISGAH field).  Two additional wells are planned in 19S-R20W.  A new unit request in in for approval that will comprise 244 acres.  Wells are horizontal and the Lewark 1 is reported to be a very good well.  Maybe activity will pickup in Columbia County as wll as the rest of South Arkansas.   

Permalink Reply by Roger Booth on August 19, 2014 at 9:26

My lease expired Jan 2014. Have not heard from anyone.

They know its there but can't get it out....

Permalink Reply by Jimburgess on August 19, 2014 at 9:30

Roger.....where is your acreage???  Jim B.

Permalink Reply by Lerret on August 24, 2014 at 7:01

The problem has been and is the brine.  It is full of bromine, and it is about 25% salt. It is nasty, difficult to re-inject, very corrosive, and the Brown Dense is very difficult to frack, and frack into the Smackover and this ocean of nasty brine comes to see you.

Was recently in Union Co. and I saw no sales of minerals in the courthouse except a slew of them where they claimed the sale price was less than $100....hmm.  It is state law to affix the correct deed stamps. I wonder if these properties are really selling for under $100, or are they "worthless" under played out fields, or someone is lying like a dog. Inquiring minds want to know.

Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2014 at 7:14

Mineral Deeds filed in the public record are not required to include the sales price.  $XXX, and other valuable considerations is standard legal boilerplate language.  It has been used in every mineral deed I've ever reviewed.

Permalink Reply by Lerret on August 24, 2014 at 7:50

You are dead wrong. In Arkansas ALL deeds require documentary stamps including minerals unless than than $100 - I along with NARO-AR president Dwight Brown was personally responsible for seeing that this went to the Atty General for clarification back several years ago.

This is the Atty Generals opinion and in the Fayetteville shale counties it is the law although I realize S. Arkansas is a country to itself. Even when CHK sold to BHP the deed stamps in White county alone were slightly more that $200,000 to the state coffers.

http://ag.arkansas.gov/opinions/docs/2008-127.pdf

Question 2 - Do mineral deeds require document tax stamps when they are

recorded?

As previously stated, it is well established that mineral rights are considered real property in the state of Arkansas. The Arkansas Tax Code specifically defines

“real property and lands” to include “the land itself . . . with all things therein

contained[.]” A.C.A. § 26-1-101 (emphasis added). Transfers of real property are

subject to state taxes, and the Real Property Transfer Tax Act is found at A.C.A. §

26-60-101 et seq. Arkansas Code Annotated § 26-60-102 lists transfers excluded

from taxation under this chapter; however, transfers of mineral rights are not

among listed among the exclusions.1 For these reasons, it is my opinion that

transfers of mineral rights are subject to the Real Property Transfer Tax Act.

If you haven't been recording the sale price, you are violating the law and the clerk is violating the law for not requiring same, but I did note in many deeds (not OG LEASES, different animal) that there is a disclaimer disclosing that the amount of the sale was under $100 and Documentary stamps were not applicable.  BTW, I authored an article in AAPL Landman Magazine some years ago to alert landmen of this law.

Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2014 at 10:15

I've never recorded a mineral deed in AR.  Your questioning the mineral deeds filed with, "$100 or other valuable considerations", seemed to indicate that the language used is what is standard here in LA where the actual price paid is not required to be included.  If you are finding multiple instances then you should ask your county clerk.

Permalink Reply by Two Dogs, Pirate on August 24, 2014 at 13:23

Arkansas is all screwed up as to their mineral law. Lerret, if you can help change the way things are done up there then I would say much ablidged. 

Permalink Reply by obed w odom on September 7, 2014 at 7:22

The AOGC weekly permit/completion report of 9/5/2014 reports the 5/8/14 completion of the Four R Lewark 1 in 4-20S-20W (serial #46991) to flow 44 bbl of 38 gravity oil from perforations at 7559 to 7563 feet. Total depth is 7731 feet so this is a vertical well which was perhaps drilled before their horizontal well in Section 4. I have not seen a completion report for the horizontal well.

http://aogc2.state.ar.us/WIPE/2014/WklyRep%209-5-14.pdf

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