Cheyenne County, CO - Oil & Gas Discussion archives

Paschal Energy sent me the lease forms for $95 and acre. I'm not going to sign because they are insisting that I warrant title (their job), an O.O.P.s agreement is required (crazy), first right of refusal and other items.

You can't just get the terms right as far as the amount per acre, length of lease and royalty interest because I have just learned the hardway they will try to take you to the cleaners on the terms of the lease documents. I am pasting some comments made by Easter MT here on a Paschal discussion.

Reply by Eastern MT on July 7, 2011 at 7:13pm
Shelly, I'm not sure what your concerns are, yet what you posted appears normal to me. Oil companies typically hire individuals or other leasing companies to contact mineral owners and secure their leases. So Chesapeake having that man, or hiring "Paschal Energy" out of Douglas, WY, to lease your minerals is normal business practice. As to the sample lease sent, the standard lease many companies offer is one of the countless variations of a "Producers 88" lease form. One of those variations is a "Rocky Mt" version. I'm guessing that is what you received. It is not a bad form but it needs to be modified with an Addendum to protect your interests.

If you own a fair amount of net mineral acres, or you're new to the process of oil & gas leasing, you should hire an attorney to represent you during this process. If you're comfortable doing it on your own then read it all very carefully and focus on the basics; A three year lease without any extension, a fair bonus rate, a 3/16th royalty, include Pugh clauses, limit their shut-in clause, don't warrant title, and most importantly don't deliver a signed lease to them until you have actual payment in hand (not just a "Draft" or "Order of Payment"). Good luck, I hope you get a great deal.

We've all got to be very careful before we sign anything even if it is going to be a deal breaker.

Jordan…is Kiowa getting higher offers?

What is new over in Cheyenne?? Are brokers still actively leasing? Updates??

I am curious also about what is going on concerning activity in Cheyenne County. Anything exciting (or not) to report?

any recent leasing activity in Cheyenne County that any one is seeing? Seems there was a lot of activity earlier in the year.

Big Well in Cheyenne County

http://www.bizjournals.com/denver/blog/earth_to_power/2013/05/new-oil-gusher-in-eastern-colorado.html

Nighthawk develops multi-stacked oil pay on Colorado’s Eastern Plains.

An area known for its sparse population and farmland, the Eastern Plains may now be making another name for itself – the home to vast hydrocarbon deposits.

http://www.ogfj.com/articles/print/volume-10/issue-6/features/nighthawk-develops-multi-stacked-oil-pay-on.html

Thanks for the post Rob!!

NOTICE%20OF%20INTENT%20TO%20CONDUCT%20SEISMIC%20OPS%20-%207570.pdf

Cheyenne%20County%20Seismic%20Operations.pdf

I can not tell if Cheyenne County is in the map of area protected because of the Lesser Prairie-Chicken Endangered Species Act's listing them as threatened species. Is it and are the operators pulling their interest away from the area because of it?

The Service determined that listing critical habitat for the lesser prairie-chicken is prudent, but cannot be determined at this time. The Service has one year from the final listing determination to propose any critical habitat for the species.

This is from the US Fish and Wildlife Service site so for now I do not believe this will be a hindrance on the operators in Cheyenne County.

Ward Energy Partners (“WEP” or “the Company”). WEP will focus operations in various basins in Oklahoma and Eastern Colorado.

http://trilantic.com/News_Story.aspx?StoryType=1&ID=59