Will a shallow well hpb an entire section?
Replies to This Discussion
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Permalink Reply by Les Bamburg on -
Alleyboy, as you said all three wells are producing from the shallow Paluxy Sand and all are on the same property (Wallace Heirs) and not producing from a unit. Therefore I believe only that particular lease is held by production. Dependent upon lease terms, the Wallace Heirs property may or may not be held for depths below the Paluxy.
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Permalink Reply by alleyboy on
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lles b
Thanks for the reponse. It's far more than I have gotten up to the present.
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Permalink Reply by The_Baron on
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its a private contract, all the public needs to know is that it exists.
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Permalink Reply by Grillin' - MmmMmm on
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Agreed. There is no need for everyone seeing a copy of a lease. We don't have to provide copies of our other contracts/legal documents and make them public, so why should leases be available?
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Permalink Reply by The_Baron on
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not to mention that recoding costs can get expensive. Every seen a Weyerhauser lease? about 30 pages long.
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Permalink Reply by The_Baron on
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Hopefully each party would keep a copy of the "real" lease. Would you close on a piece of land that you new was subject to a lease without seeing it? I would not.
I may make deal with landowner A, but not want landowner B or C to know what I gave up. Its just not their buisness. Sorry if that hurts your feelings. And I stand by what I said about a OGM from Weyerhauser, 30 pages is expensive to record.
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Permalink Reply by The_Baron on
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Thats why you have witnesses and notories. If you are that worried about it, make recording the full lease a stipulation.
Keep your copy of the lease in the same place you keep other important documents. You can mail yourself a copy, don't open it (make sure the postmark is legible, and keep it in your safety deposit box. -
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Permalink Reply by Grillin' - MmmMmm on
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If I was paid $20,000 per acre for a lease, what business is that of yours? Are you required to tell me how much you paid for your car or your house? Should you have to publicly record how much you paid for your eggs and milk at the Piggly Freakin Wiggly??
How does a lease bind third parties? The lease is between the person who owns the minerals and the person who wants to lease them. If I file that a) the lease has been taken, b) how long the lease will last and c) what property is involved, it doesn't really matter how much was paid, what the royalty rate is and what the provisions are. Get real.
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Permalink Reply by Dion Warr, CPL on
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Group:
The three wells cited here are currently shown as wells tied to a gas lease. Production for these wells are pooled under the same LUW code. Additionally, the only applicable orders cited in the well files for these wells are 29-B and 29-E, which are general statewide orders; there are no units associated with these wells.
The only other way that these wells could HBP any other lease, much less a section, would be if the leases were voluntarily pooled. A declaration of pooling agreement would be filed in the parish records and/or the well files if this were the case. I have not checked the Parish records; the well files do not show evidence of such an agreement.
Assuming that no other leases have been pooled and are applicable to (or held by) the current production, one would have to look to the lease(s) between the parties as to whether the current production is sufficient to hold the entirety of the leased lands and/or all depths above and/or below the producing formation.
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As to the memorandum of lease statute, length of the lease document may certainly have something to do with the recordation of a memorandum, but generally the nondisclosure of lease terms is of primary importance when filing a memorandum. That's not to say that 'someone got something that you didn't'; many sophisticated lessors use their own custom lease forms exclusively, have spent a great deal of time and expense in crafting their forms, and are very secretive as to their lease provisions. Some of these folks have no interest in leaking their terms and provisions to the general public for other would-be 'negotiators' to crib off of their contracts free of charge. They may also prefer for potential lessees to contact them directly to determine whether a certain tracts of land (or certain depths) are available to lease.
Whether a section of land is HBP or not (as long as the entire section is not owned by the same owner) becomes a very public process. Declarations of pooling (voluntary) must be filed of record to become effective to third parties. Lands are force-pooled by field order of the Commissioner of Conservation at a public hearing, usually after a pre-application conference to which most (if not all) interested parties are invited to attend, unless no party indicates an interest of attending such a conference.
BTW, in case you were wondering, filing a notice or memorandum of lease (or extract of lease) is nothing new. Many common surface leases are evidenced in the record in this manner. In fact, the current pertinent statute which stipulates the form and content of such a notice of OGML is the same one which regulates surface leases (e.g., agricultural leases, grazing leases, etc.). It requires the disclosure of (1) the parties involved, (2) the land(s) affected, (3) the term of the lease, as well as (4) any terms which allow for the possibility of extension(s) or renewal(s) of the term of the lease. The instrument must be executed by all parties to the lease. All other terms may be held as confidential between the parties (lessor and lessee).
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