Replies to This Discussion

Permalink Reply by olddog573 on July 25, 2008 at 5:21

Dick,

Would you happen to know how many acres the Sabine Police Jury has to offer in Northern Sabine? I saw yesterday where the state had received 40+Million$ in leasing which was a record. I know this money won't get back to northern Sabine so hopefully we can get money other ways such as the businesses you mention above.

Permalink Reply by Dick Shuford on July 25, 2008 at 23:03

No, I have no idea. I would imagine that you jury member has some knowledge of it. I am not even sure how that money is allocated. Hopefully with the recent activity in the area and the newly rebuilt La Hwy 171, enough will come out way to rework La Hwy 174 from 171 to I-49.

Permalink Reply by SisterSuzie on July 27, 2008 at 19:04

Don't just stop at 171. Go all the way to the lake. Yes I know it was just resurfaced, but it won't take very much activity to have that part messed up again especially in several of those curves where they had to really build up the sides.

Permalink Reply by Jack Blake on July 27, 2008 at 15:22

How much are lease bonus payments in your neck of the woods?

Permalink Reply by Dick Shuford on July 27, 2008 at 15:32

I have been told from $12,000.00 to $15,100.00 with 25%. It wasn't from folks on the street from landowners. No, can't say who

Permalink Reply by Jack Blake on July 27, 2008 at 15:54

Interesting..... I have some in that area and signed a couple months ago for $4,000.00 and 25% on 3 year lease.
I did not sign the 2 yr option. My question to you and all is if they don't drill in three years, would an oil company just exercise the two year option on the folks who took it in the section I'm in and leave me out of the lease bonus at that time because they had enough of the section leased to hold the section?
At the time I thought don't sign the 2 year option...Now I don't know
No matter how it plays out it is an exciting time for the area.

Permalink Reply by Dick Shuford on July 31, 2008 at 12:46

Jack,
That is a good question. I don't know the answer. I really don't feel the bulk of the acreage can be drilled up in the terms of many leases. It is my understanding that regardless, you are eligible for payment on production underneath you acreage. I am sure there will be many suits before this is over. One thing I think people need to be aware of is increasing the units size. If you get a letter in the future where a company has applied to the conservation department for an increase in the unit size, I would surely participate in any meetings, etc. concerning this application. I am not sure which is best, but I am leary.

Permalink Reply by Dick Shuford on August 11, 2008 at 23:14

The more I think about some of this leasing the more I am concerned about certain situations. There are several issues that come to mind. For example assume you have property that is not leased which comes under an assigned unit of a new well. I think the normal deal is that you would not actually receive monies from production until the well pays out. At that time what % would you receive ? I think this is a vague area.

Another area is getting leases released. I don't know but I've been told that there are some situations where old leases have been released. For example, let's say you are in a well that may produce or even does not produce but the operator has made some token payment on shut-in royalty. Due to this he is still holding a lease. You may receive some ??? $ 100.00 per year shut-in payment and there has been no effort on or by the operator to explore other formations, etc. Let's also think that in some cases the royalty owner may have only a 1/8 lease. I think that the case may be that the operator could go to the new guys and lease this same portion (your lease) for the bonus money and a larger percentage. If this is the case, there may not be anything you can do, but I feel you need to look into these possible situations if you think they may apply. Anyway, it is just a thought.

Permalink Reply by Dick Shuford on August 28, 2008 at 23:59

Well it may come about. We received a letter yesterday stating that SWEPI LP had applied to unitize of 5 sections in Township T10N-R11W. They are sections 18,7,8,16,21,and 27. We are smack dab in the middle of 27. I say bring out 2 D7's and get the location made. Oh well, wishful thinking.

Permalink Reply by Jack Blake on August 29, 2008 at 9:19

I got the letter too. Something interesting to me was theyr were two plat maps showing they were applying for the Haynesville and the Cotton Valley formations.
I think when I got other letters for sections that were close to me it may have been just for the Haynesville. I need to pull out the old letters to see. We're in section 21.

Permalink Reply by Two Dogs, Pirate on August 29, 2008 at 12:44

They called it the Jurassic in the first unit formations.

Permalink Reply by Dick Shuford on August 29, 2008 at 12:58

Yes the Jurassic covers both

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