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re: Oil companies drilling on your land in exchange for a percentage of what they find?
Posted on 4/30/18 at 7:47 pm to TDcline
Posted on 4/30/18 at 7:47 pm to TDcline
If you are talking about the alexandria area, they are generally leasing for &750 up front and a percentage later. Sounds to me like some shyster has approached your family and will sublease to one of the larger companies for the larger amount. I would tell him to hit the fricking road.
0
Posted on 4/30/18 at 7:50 pm to TDcline
One thing to consider is that you can go unleased on it.
You get 100 percent of revenue minus expenses once the well is paid for.
Your minerals remained unleased for the future and your heirs aren't tied to a lease signed 50 years ago like so many were in the Haynesville.
The pro O&G folks are going to say this is a bad idea but it is your decision to make.
You get 100 percent of revenue minus expenses once the well is paid for.
Your minerals remained unleased for the future and your heirs aren't tied to a lease signed 50 years ago like so many were in the Haynesville.
The pro O&G folks are going to say this is a bad idea but it is your decision to make.
Posted on 4/30/18 at 7:52 pm to Beessnax
quote:
One thing to consider is that you can go unleased on it.
Yeah this is a bad idea.
Posted on 4/30/18 at 8:01 pm to Beessnax
You do realize these are 40 stage, 8000’ laterals costing $10,000,000+ per well, right? Not to mention salt water disposal, pipeline cost, and any other future expenses associated with the well.
So on 40 acres your part is $625,000 just to drill and complete. Before selling the first drop.
Pocket change for the OT.
So on 40 acres your part is $625,000 just to drill and complete. Before selling the first drop.
Pocket change for the OT.
Posted on 4/30/18 at 8:01 pm to LSUTigersVCURams
quote:
Yeah this is a bad idea.
Agree
My in laws are on their second lease in the Haynesville Shale and they haven’t drilled a hole yet in their section.
I don’t think they are far from the current lease being up.
This post was edited on 4/30/18 at 8:03 pm
Posted on 4/30/18 at 8:04 pm to TH03
quote:
central Louisiana
quote:
What state is this?
Jesus Christ
Posted on 4/30/18 at 8:05 pm to TDcline
Sounds normal. That's what happened to my family.
Posted on 4/30/18 at 8:20 pm to PaperPaintball92
If you do sign a lease limit them to depth and that way if they discover something deeper then they have to come back and reup the lease. They will tell you how deep they want to drill and incorporate that into the lease.
Posted on 4/30/18 at 8:24 pm to TDcline
quote:
They offered my parents 20% of what’s found. That seemed kinda too low to me
Kinda low for not having to lift a fricking hand?
Posted on 4/30/18 at 8:26 pm to anewguy
quote:
if you’re good
If not...
Posted on 4/30/18 at 8:27 pm to TH03
quote:bullshite. The owners can sell the minerals via a deed, they damn sure own them. If the owners wanted to extract the minerals themselves they have every right.
Your parents have the mineral rights, meaning the rights to explore for minerals, they don’t own the minerals.
Posted on 4/30/18 at 8:29 pm to Beessnax
quote:
One thing to consider is that you can go unleased on it.
If there is too much unleased acreage in a drilling unit the oil company may decide to drill elsewhere and the property owners within that unit get nada.
Posted on 4/30/18 at 8:40 pm to White Bear
quote:
The owners can sell the minerals rights via a deed.
FIFY
Posted on 4/30/18 at 8:48 pm to White Bear
quote:
Your parents have the mineral rights, meaning the rights to explore for minerals, they don’t own the minerals.
bullshite. The owners can sell the minerals via a deed, they damn sure own them. If the owners wanted to extract the minerals themselves they have every right.
In Louisiana they own, and would be selling the rights to the minerals if and when they are captured on the surface, they do not own the minerals that may be in the ground under their property. For example they can own property that sits on top of 25% of a natural gas reservoir with 75% of the reservoir being under other property owner's land. When the drilling unit is formed, which in LA is 640 acres or one "section" for gas wells if their property is outside the drilling unit they are going to get zero for the gas extracted in the drilling unit even though it is physically being depleted from a reservoir extending under their property. The natural gas or oil belongs to whoever recovers it at the surface, not who owns the property over it.
This post was edited on 4/30/18 at 8:50 pm
Posted on 4/30/18 at 9:03 pm to Jim Rockford
quote:
Unless you know about Pugh Clauses, shut in payments, and a host of other minutia, you need an oil and gas lawyer.
I don’t know what a Pugh clause is, but I have indeed met Bill Pugh. Nice guy.
Posted on 4/30/18 at 9:03 pm to Clyde Tipton
quote:
Clyde Tipton
Your math is incorrect based on your own assumption of lateral length.
Posted on 4/30/18 at 9:17 pm to Jamohn
quote:
Been that way for over 80 years.
Longer even.
You may have seen me refer to my grandparents on this site before? As a young teen I helped my grandad (born 1906) repair the wrought iron gas line that ran straight from a well about 1/2 mile across the road from them a few times (sandy soil with gas under pressure moving through it turns sandstone-like fast btw, PITA to dig out by hand). They got free natural gas for life on their part of the lease that Great-Grandad signed before 1930.
That old gas line is still there btw, unused, capped off on our side of the road since about 1995. The new house my parents built for the grandparents has gas pipes where it was originally hooked up, but due to distillate the house is now electric.
ETA: Mom got a call today from some guy outta TX wanting to buy land in NW LA. I'm sure it has to do w/wanting the mineral rights. Needless to say, now that the lease is returning up to $25k/month she ain't selling.
This post was edited on 4/30/18 at 9:23 pm
Posted on 4/30/18 at 9:22 pm to Beessnax
quote:
Your math is incorrect based on your own assumption of lateral length.
I’m sure it is. I’ve never been involved in drilling one of these wells specifically.
I’ve just looked at the completion details of a relatively recent Austin Chalk well in with respect to number of frac stages and lateral length. Through the grapevine I’ve heard they cost 10 million. Never had an AFE in my hand...
Posted on 4/30/18 at 9:36 pm to Clyde Tipton
Come and listen to my story about a man named Jed
A poor mountaineer, barely kept his family fed,
And then one day he was shootin at some food,
And up through the ground come a bubblin crude.
Oil that is, black gold, Texas tea.
A poor mountaineer, barely kept his family fed,
And then one day he was shootin at some food,
And up through the ground come a bubblin crude.
Oil that is, black gold, Texas tea.
Posted on 4/30/18 at 9:38 pm to TH03
Can you not read dipshit?
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