Replies to This Discussion

Permalink Reply by RBH on September 22, 2009 at 7:37

When did you get division order?
Regarding the "commingling"..what I see on the reports filed by EOG with the Texas Railroad Commission is that they have drilled several wells by the EOG Coats #1.
It appears that the gas is gathered through some kind of common facility and EOG allocates back to each well the % based on well tests. On your 1st check received in June, did the sales volumes tie for January-March from above?

Permalink Reply by Kathy on September 22, 2009 at 12:39

I don't remember when we got the division order. The information that you have on this blog matches exactly to whats on the first check. It actually is from Dec - April.

Permalink Reply by RBH on September 23, 2009 at 3:10

website for land records and units, etc.:

www.texaslandrecords.com

Permalink Reply by adubu on September 22, 2009 at 12:27

Kathy---I assume you are talking about the H.Coats #1 well that is a Travis Peak Vertical well ~ 2 miles West of Martinsville along the N side of Hwy 7. This well is not commingled with anyother lease unit that I see on rrc site info. Suggest you call rrc district 6 office in Kilgore give them the API # of well 347-32937 and they can answer question about total # acres in lease and production since completion, total wells in unit (only one I see record of), etc. If your phone call to royalty department at EOG office no help then I agree send them certified letter. I find it hard to beleive they will not answer your questions on phone call if you have your payee # and ID data. According to original drilling premit it was a 40a unit but this was for premit only it more than likely has been increased to contigency acres to made a larger unit to HBP more acres can be 640+10% ie can be 704acres. If so in time they will drill more wells in this unit TP spacing of 40-80 acres/per well

Permalink Reply by Kathy on September 22, 2009 at 12:43

I pulled up the certificate of pooling authority and there are 7 individuals involved in this well. What is "HBP" and "TP"? You all are being very helpful, but I still don't understand most of what you are talking about.

Permalink Reply by adubu on September 22, 2009 at 14:19

Kathy--HBP= "held by production" which says as long as there is production the lease is held and doesnot expire that is reason terms of original lease is SO IMPORTANT you will live with for decades. TP = Travis Peak well ie the formation that is produced. In these area the TP depth is starts at ~ 9800' thru 11,200' the upper part is best gas. This well also is making some oil at ~8-10 barrels day plus good gas at about 2.5mmcfd at 1st now still ~ 1+mmcfd. For Travis Peak good well. Above TP is the Pette and James lime for example and below the TP is the cotton valley, shale, and cotton valley lime formations for your interest. It will flow for 25+ years but of course production will drop fast over the years but should make close to 2 Bcf of gas total life. Spacing means they can drill a well for each 40-80 a in the unit so if unit has 640a can put 8-16 Travis Peak wells on the 640. That just the TP. If you have production in the other formation like James Lime can drill 8 Horizontal James Lime wells in same unit plus more wells if there is oil or gas in the other formations, etc If your lucky it will take decades to drill out all the possible wells in the unit. Again the original terms in lease is more important that the bonus and reason never let your children sells your minerals--- educate all your future heirs to that fact. I assume your one of the 7 in the unit that is great for you and family

Permalink Reply by RBH on September 22, 2009 at 15:03

there are 23 leases in the unit declaration and it is a 671 acre unit

Permalink Reply by Kathy on September 22, 2009 at 15:12

How do you find out that information? The certificate of pooling authority has 9 names, but some are repeats. There are actually only 6 individuals involved, not 7.

Permalink Reply by adubu on September 22, 2009 at 15:48

kathy--commingling is complicated but not. In simple terms, All gas from same reservoir formation will commingle during transport to storage thru pipeline of several leases however all gas is meter measured at well head and oil and condensate are separated and reported to rrc. All royalty owners will receive their % interest for the unit they are in. No one gets any of your royalty money from any of your wells. So do not worry about all this type details. The RRC will protect the royalty owners in general they do well. Of course there are theives is every business but EOG is respectable company. Call the rrc district 6 office in Kilgore they can confirm the P-12 list in unit and # acres in unit for you. Who and how many different people in lease makes no different to you because your interest is # net minerals acres you have divided by total acres in unit multiple by % royalty in your lease = % interest you own

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