Replies to This Discussion

Permalink Reply by Johnson on August 6, 2008 at 13:29

That's what I thought as well.....but when I hear someone say they "never paid more than 100% penalty" that makes me think they paid that on top of cost.

Just symantics most likley, but just checking.

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Permalink Reply by Sarah on August 4, 2008 at 16:46

Les B, I too appreciate the contributions you have made to this forum. Thank you for your input. You have given us some very valuable information on here. Don't go anywhere, K?
I'm just blown away at how rude people can be, and I appreciate how civil your replies back to them are. :)

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Permalink Reply by Bobi Carr ("parker") on August 4, 2008 at 17:03

I second that.

I appreciate how civil everyone is on here. (Well - most everyone).

Parker

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Permalink Reply by Two Dogs, Pirate on August 4, 2008 at 17:43

You cool Earl.

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Permalink Reply by Snake Stewart on August 4, 2008 at 17:48

When you guy's all get through signing the buddy card just remember this, when you talk it you had better be able to walk it! It doesn't matter how civil rhetoric is at the end of the day.

This site begain as a place for people to learn how to keep from getting mugged by O&G's like their neighbors did.We seem to have fallen asleep at the wheel because it seems to me that this shale play is still going on and if you were O&G then you are still O&G. I ain't looking for penpals when it comes to the intel I seek. Honey catches more flies then salt but when you feel that you can't trust someones remarks anymore does it matter how much honey or salt is added.

If you feel that O&G's have your best interest at heart then you are a bufoon and there isn't any help for you. Sign your deals and live happily ever after for two months and then realize all that sweet talk really wasn't in your best interest when you find out how bad they really got to you.

Being at times one of the most critical people on this site , I speak from a wealth of experience when it comes to drawing a line in the sand.If the kissing and hugging have to take precedence over good sound common sense thinking and investigative searching out of the facts and proof of that which you speak of, then this site may no longer serve its true initial purpose anymore. At least what I thought it was for anyway.

At the end of the day , as long as I still can function in a normal manner, ( HA! ) I still trust O&G about as far as You and I together can throw them. No matter how civil I may try to be at times !

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Permalink Reply by Johnson on August 5, 2008 at 6:15

It's up to each of us to decide what to believe and not to beleive. Just remember....everyone on here has THEIR best interest at heart...not yours.

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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 9:30

Now that is funny.

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Permalink Reply by po boy on August 5, 2008 at 9:35

"and the meek shall inherit the earth." But we will have the mineral rights. to paraphrase the founder of Standard Oil

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Permalink Reply by GASHUNTER on February 10, 2009 at 19:34

This my understanding of forced pooling - When a spacing unit is not whole, one or a group of the mineral interest owners in the DSU can drill a well. If the well is productive they can force the non-participating WI owners to pool their interest in the DSU. Those not participating would be forced to reimburse the operator(s) for their share of the capital to drill, complete and tie-in the producing well. If they don't reimburse the operator they would be placed in a capital penalty position, where their share of the production would be forfeited to pay the capital.

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Permalink Reply by Dion Warr, CPL on February 11, 2009 at 2:38

J Stewart:

What happens to you depends on where your property is located:

In TX, you could be 'cut out' of a unit entirely (owe nothing, paid nothing, and could very well have some reserves drained from beneath your property depending on your proximity to the well and the extent of the fracing from said well).

In AR, you can be integrated and 'force leased' after (AR) OGC has been presented the terms under which other lessors have been leased, and the Commission grants the integration application (at which time, the Commission also determines the fair value terms to which you will be 'leased'. UMI is granted a period of time (15 days) to choose which option they will take [(a) lease, or consent; (b) participate, and pay one's share of cost up front, (c) go non-consent, and be penalized up to 400-600% well cost]. To the perception of many, this amounts to a forced 'taking' of your mineral rights, as you cannot stop operations, and the Commission decides what your terms should be. Arkansas does provide the payment of royalties due to you as to the first 1/8 of production. The following bulletin outlines the procedure, FYI:

http://www.aogc.state.ar.us/PDF/Royalty%20and%20Surface%20Owner%20B...

In LA, UMI proportionate share of revenue can only be offset by the direct well costs, plus a reasonable fee for supervision (actual costs), unless you are 'in the oil business' (i.e., ExxonMobil cannot seek refuge under these provisions for their mineral lands and/or fee lands, and can be charged additional risk penalties, Joe Landowner can). UMI is not 'forced' to make a decision whether to lease or not, cannot be 'cut out' of a unit, and cannot be charged a penalty or forced to participate (with their share of well costs) up front.

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