Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 15, 2021 at 13:10

I think the lack of replies in this discussion is owing to two things.  I don't know what you mean by "Frac head line" and others may find it confusing and I think the question, framed better, would have a greater chance of receiving informed responses by posting in the Panola County Group.

https://gohaynesvilleshale.com/group/panolacounty

• ▶ Reply

Permalink Reply by d laurenson on April 15, 2021 at 13:22

Thanks....the wording "frac headline" came from the realtor.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on April 15, 2021 at 13:34

LOL.  Realtors are notoriously agnostic when it comes to minerals.  Ask for some detail as "frac headline", whatever in the world that is, means nothing to those of us in the industry.

• ▶ Reply

Permalink Reply by Rock Man on April 17, 2021 at 9:22

As per Skip, need some more info on this issue in order to address it.

I will make a "leap" and assume the realtor is talking about a situation where the present surface owner of this tract has agreed to allow an operator to put their drilling and production pad / site on this tract and then drill a horizontal into the adjacent tract(s). Common practice to allow the operator to maximize horiztonal coverage in the target zone in their laterals.

If this is the case, good chance the operator is planning for multiple wells from these surface locations.

Take this with a grain of salt until you can find out more info about what is really going on out here.

• ▶ Reply

Permalink Reply by d laurenson on April 17, 2021 at 11:06

This is info sent to me by realtor. I will pursue a more complete description of what is there. Thanks!

There are two different Frac Head lines on the property one of them pays $400 per year and the other pays $2000 per year. Then there is a Frac Header across the road from the Frac Pond that has an easement on this property to use a Run Flat Line. This pays $4500 every 45 days when in us

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on April 17, 2021 at 11:22

It sounds like these are pipelines that transport water to well sites for use in facking wells.  The Frac Pond mention and easement would seem to match with that assumption.  If this is the case, I suggest that you ask the realtor for copies of the lease agreements and have a qualified attorney review them before you decide to purchase or negotiate a purchase price.  if there are no damages to the property or limitations of use that would hinder your planned use,  then it's a question of length of contract (revenue) and whether the contract carries any extension terms.

Again, you might want to post this in the Panola County Group.  When you do, all the group members get an email alerting them to your new discussion.

• ▶ Reply