Charles
Thanks for the reply. Very good info. Do you have any knowledge of who is wanting to put in the RV park and is it on 1680 or off Hwy 90. Who would you recommend as a good oil and gas attorney that has knowledge of salt water disposal also. Did you ever look over the lease I sent to see how it stacked up to other leases you have seen.
Thanks
Don
Charles Edward English said:
Don,
Understandable! And, for the most part this is what we will all face with the pressed facts of leasing! As, you well know and understand now, it’s all about the lease, because the bonus money can be a short sight of things if you’ve not been involved at this level before, and this certainly will happen again and again! Remember, these same areas held production of a sort in the 1930’s & 1940’s before Eagle Ford and Chalk wells are being produced in this same area too! And, many of these held by production wells today are operating from 1940’s leases before the “Pugh Clause” of 1946, but thank goodness for depth language in the lease! The lease is the grail of things and not the “bonus” because you can lease in the real low 3 digits and if you have a crappy lease, a crappy owner/operator, or production and poor transportation/gatherer operations and etc.; nothing matters if you cannot develop your production because of all the crappy sources! It does mean a thing! So, there are all sorts of things which needs addressing in the lease, which brings things in concert and that which we all seek…a royalty check! What I want to see is how these companies will long behave, as they near lease expiration. Will they 1) let the lease expire, 2) flip the lease, or 3) move to hold by some “obscure” production and etc. Because, many think that the real company is always dealing with the landowner when many landmen work as broker/agents who research and hold the land for said company like a ZaZa Energy LLC who is the Operator which gives directives by and through their landman and they have 10% interest whereas the 90% interests is held by the deep pockets who actually calls the shots! In other words, there are lot of players and God forbid if some unforeseeable circumstance is not in the lease, then the operatives know they will most times get away with it all, just as BP did in Louisiana. So, Don there is enough blame to go about, but I hope that I can be a part of sharing a bit of information, and again thank God that my Great Grandfather put things in writing in 1941 lease which is operative this date at 2250’! So, these companies are looking well past a you, or a me, because of that darn lease. So, if there is no current production on your property at the present time does not mean it will not happen, and what I recently learned from the operatives of Southern Bay last Saturday off Cal Maine Road and behind Crabb Ranch just south of Hwy 90 East; they are being asked to drill the vertical to a depth and cap for further work by Southern Bay. This will benefit the company in my opinion to hold or maintain the lease until further exploration, but this could also cause them to allow the lease to run and flip and etc. that same lease. Now, I were approached last week to sale my 10 acre tract for a low amount for a Salt Water operation and when I asked him about leasing instead, he were reluctantly not interested! Now, I’ve called the Railroad Commission and visited their site on Salt Water Disposal/Injection Wells for more informative information and who grants the permits for my personal knowledge. I’ve been told of the perfect location which is accessible for both a RV Park and Salt Water Disposal opportunities. Now, my mind tells me that activity is going to increase in this local which is very close triangle of Lavaca County, Gonzales County, and Fayette County which a influence with the RRC stated that “oh your in that high impacted Eagle Ford Shale area!” I understand that the Hardaway Ranch has been approached between Peach Creek and Andrew/Wesley Chapel Cemetery last month about leasing, Barbara states that the Moore Estate has ongoing pike line approaches, and Sklar Ranch has stated that his attorney has 3 separate interested operatives but no bonus in hand, and RV Park for 60 units and Salt Water Disposal/Injection Wells sought has one thing and one thing in common…and that’s Old Moulton Road or CR 1680! Before, it was all about gas and now condensate activity, but since the 2 wells drilled in Flatonia, TX approximately 5 - 10 miles round about we have seen a trending northwards westerly and easterly which fracking I’m told can go for not less then 1 mile in any direction. Now, it seems that the buzz is about that “black” gold at or more then $100.00 per bbl, and the announcement of 2012! Remember, that Gonzales Extension with Texas A&M will host its first series of “Instant Wealth Seminars” in early January 2012…contact Dwight Sexton, Extension Agent and UTSA Business Institute are rewriting the impact of the Eagle Ford Shale on Texas economy and they too will host an Eagle Ford Shale Play conference in Spring 2012, because their prediction again undervalued the impact of the Eagle Ford Shale. Remember, the impact just this year to Gonzales County is stated to be 640% for 2011 (San Antonio Express-News) compared to previous year end, and if you think that the investors just learned this, then we have not paid attention to EOG CEO’s webinars and maps. So, I write these messages in hopes that we all learn how to become better steward over our resources and we unite, because there is no protection(s) for land & royalty owners…but a “lease” and our arbitration abilities, and that can not only take money, but years! But, always seek the advisement of an Attorney when entering a contract and making your decisions. Charles
Don Purswell said:
Charles
The lease is from 2008. My aunt made a mistake and signed the 2 yr ext. If you need any confirmation on why not to go more than 3 yrs here it is. Of course the 2 yr option was picked up in Sept when the original term expired. I’m not going to elaborate on the bonus $ but let’s just say they were in the real low 3 digit range. No current production on the property. I am probably 1.5 miles from the Cemetery towards Peach Creek. I have been approached for a Salt water injection well not reclaim well. Actually have had a couple people interested in Salt Water well.
Don