- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: MUST a landowner lease land to secure royalties...
Posted on 3/4/12 at 5:19 pm to gonads&strife
Posted on 3/4/12 at 5:19 pm to gonads&strife
quote:
Actually the operator is entitled to recover drilling costs X2.
In LA the unleased mineral owner only has to wait until the costs to drill and complete are recovered. Working Interest owners who go non consent have to wait until 300% of the costs are recovered, as the law was changed a few years back moving this up from 200%.
To the op: Some operators will "operate these interests to death", though and it would be risky to not lease. Leasing essentially takes all the risk off the table. If you choose not to lease, you could potentially cause the well not to be drilled should you have enough acreage to make the operator not want to carry you. By leasing you make money even if the well never reaches payout. By not leasing you will get statements you can't understand and will be facing an uphill battle getting any information out of most operators. Also the operator will not view you favorably and you will make an adversary out of most of them in this situation. I personally think LA needs to raise penalties for unleased mineral owners who refuse to lease higher than the current 100%. Some landowners can and are stalling development by not leasing. Arkansas can be as high as a 500% risk premium and wells get drilled regardless. With your 2 acres that's not going to make you a tremendous amount of money either way so you might as well lease and remove the risk.
This post was edited on 3/4/12 at 5:25 pm
Posted on 3/4/12 at 11:31 pm to TigerDog83
I stand corrected, I forgot the risk charge didnt apply to unleased min owners.
On the other hand, I'm against forced pooling and your proposal is essentially creating that scheme with huge penalties. If someone doesn't want to lease that's their prop and their right.
On the other hand, I'm against forced pooling and your proposal is essentially creating that scheme with huge penalties. If someone doesn't want to lease that's their prop and their right.
Popular
Back to top
Follow TigerDroppings for LSU Football News