Oil & gas discussion group for those interested in Elbert County, CO. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
http://www.niobraranews.net is a good link for current information on the Niobrara Play, particularly Weld County. Has anyone seen any activity in Elbert County yet for seismic testing?
Is there anyone out there that has been offered a mineral lease in Elbert, County? I have been contacted and the offer is 100 per acre for 8yrs with 16% royalty. Is this a fair offer. I am new at this and have no idea what is a fair offer.
Janet,
Depends on the area and how many acres you have. It sounds as if you are further east in the county. The 8 year term is high, bonus and royalty sound low, but depends on what others are getting in your area. But, along with terms, you should look into getting protection provisions written into a lease to protect your surface and potentially your water, protect your rights, and maximize your assets. If you can, check around your area to find out what others have been offered.
Debbie
I recently was contacted by a landman for Chesapeake. I live on the county line between Elbert an Arapahoe east of Sun Country. I was offered a 3+3 lease with protection written in for water and surface rights. I see a lot of comment here about lawsuits against Chesapeake, but thus far, my interaction with them has been good. I would definitely advise getting an oil & gas attorney to review anything you receive. if you need a local attorney, I can pass the name on.
Just joined as a new member and future possible resident of Elbert County. Living presently in Texas where Eagle Ford Shale is booming. In this area, with a good oil/gas attorney, folks are signing 3 year leases with NO option for additional lease years on the same lease. Sure wish we were already living in your county. It's over 102 here everyday!
So, just joined this site and noticed where people are signing or have signed with RedSky (who is, Silver Lake, who is Blaca. . all who are directly tied to Chesapeake Oil). I signed with Justin at RedSky months ago as did my connected or “touching” neighbors near the ElkHorn subdivision. My neighbors (one signed with Blanca EARLY, the other signed with RedSky months before us) all received 100% rights but Justin sent us a letter informing us we were only entitled to 2.78 acres instead of the 11.12 we own. I began my research and called him to tell him he was mistaken. He became furious over the phone and hung up. I called him back and asked if that was a normal phone conversation for him. He told me he was SURE his “guy” was right and would get back to me. Days later, he called and told me I was entitled to 6.94 acres. I told him he was wrong again and asked for his “sources of info” he cited Book and Pages that I had in my possession citing the chain of ownership from 1970. I then asked to be released from my lease and he told me it was not possible.
Now, folks, I’m no dummy. . I never cashed the “bonus” check that would have bound me to the change of terms (11 acres to 7 acres). I hired an atty and began fighting them. They stalled and made bizarre claims and then suddenly in mid Oct '11, closed their doors in Parker. I called the Sec of State to get the “Registered Agent” for RedSky and they informed me that RedSky was never licensed in the State. Now I’ve done research and found where RedSky in Northern Michigan signed contract with huge numbers of people and then Chesapeake refused to pay the mineral right contracts ( I can provide the web pages upon request - it said that is a no-no on this page). CHK is now being sued for $400 million for failing to pay.
Just want everyone to keep their eyes and ears out for whisperings in the news. They are being sued in Penn, Mich, W Virg and TX. .also, in the Denver Post was a story about how RedSky was threatening owners with “forced pooling” (which IS feasible in CO, but not the end of the world for owners). I am torn, I had agreed to $500 an acre 3/16ths. . but am wondering if I wanna hold out to be “pooled”.
I saw a Seismic 3D tractor going down 86 West bound and makes me think they just completed a study. Chesapeake weather you like them or hate them will own Elbert County they already have the most 640 Acre spacing orders for Horizontals. They have the deepest pockets and they hit oil and gas 100% of the time. If they drill a dry hole it’s on purpose for Salt Water Disposal. Elbert can be the next weld county, and i hope the residents, town and city goverments let it happen. Prosperity is right around the corner. Renegade Oil and Gas has the first and only approved permit in 13 years and they should be drilling soon CR21 and County Line. Good Luck!!!
Water available in Lincoln/Elbert/El Paso counties.
A large source of clean (formerly agricultural) water is available for drilling and production purposes in Elbert, Lincoln, and El Paso
counties. By the truck-load or buy the rights. Up to 2 million GPD. Contact Rick at rick@griceenergy.com. (303)840 2313.
@ Jason: I believe Renegade is already approved at 29, just South of Co Line. Don’t know if they’re affiliated with CHK, but I would lean that way. I don’t doubt they’re gonna hit 100%, it aint rocket science anymore. I actually DO hope they start soon. My concern is whether CHK will pay out. They aren’t in North Carolina. . I’d like a check too!LoL
D Moeller and Jason,
Renegade Oil is not Chesapeake. They are an independent. The well they have permitted is a vertical well, not horizontal. They are not interested in the Niobrara but have permitted the well to that formation in case any other oil company wants test data. They are interested in the DJ Sands. Other than Renegade, the closest permitted wells in the Niobrara are the 4 Lario wells about 15 miles north in Arapahoe County. Those wells now belong to ConocoPhillips and are horizontal, permitted for oil. They have not started yet. Chesapeake will most likely be next in Elbert Co. CHK has a while before they have to do anything though. As for your lease Mr. Moeller, if your mineral rights have ever been severed or your land lies on a section line and part of it has had the minerals severed, you will only get paid for any net mineral acres you own. The only way to find that is through a title search in the county clerk's office, which if CHK sent you a check, they should have done. If you think they made a mistake, you could ask them to provide you with a copy of the documentation that states you only are entitled to 6.94 net mineral acres. Beyond that, you have signed the lease and I imagine a payment order. I don't think you would be able to get out of the lease, but should be able to come to an agreement on net mineral acres for bonus money, since the proof is in the clerk's office. Yes, CHK has lawsuits in other states, but so far has not cold drafted anyone here. They do have language in their payment order to get out of paying though if they choose to use it. They have recorded leases before final title search and payment of bonus money though, so watch the clerk's office. Good luck to you.
Yes Debbie Renegade is certainly not Chesapeake, two totally different companys. But your wrong about Renegade not being interested in Niobrara because they most certainly are along with the existing production they have in nearby sections they have plenty of test data and some of there existing producing wells are in the dj sands. Just keep in mind oil and gas companies keep quiet and try to throw off the public with certain media tactics. Everyone is interested in Elbert just like Everyone is interested in Weld.
Hi Jason,
I was Just repeating what the gentleman that owns Renegade told me earlier this year. They were not drilling horizontally in the Niobrara and didn't have any plans to. He said they had permitted the well in Elbert Co. for test data only for anyone else that might want some (to sell it). He had come to a public oil and gas meeting as a favor to a friend. I spoke to him myself and he also spoke to the group in attendance. Those in the meeting had a lot of questions on leasing, drilling, water usage, etc. and had asked him what his intentions were.
Again Oil and Gas Companies whether they call it " a favor to a friend" to travel from Canada to talk to Elbert County Residents just because he had nothing more to do and no motives other than being a good samaritan or the true reason is Elbert is very close to being the next Weld County and he needs residents to sign more and more leases, Renegade turns right and the permit they have even though it is not for aHorizontal well they are lobbying COGCC just like Chesapeake to get 640 acre spacing units to drill baby drill. Again in this industry that “quiet period” applys long before they complete a well.
Nope, mineral rights have never been severed. I'm quite familiar with Deeds and researching them. My comment was intended to tie CHK and Renegade if they had sub-contracted Renegade to punch an exploratory in the area, (which might be what they intended by Debbie's comment)not to insinuate they were one in the same.
While I am near a section line, I am not bordering it.
I simply requested they correct their decision and they (RedSky) refused, but the owners on each side of me (all lots sold in 1995, were subdivided in 1999 and sold individually in 2001-03) were given 100%. They are ignorant and wrong. Not only has the atty broken it down for them, but their latest claim was that a divorce in 1984 might have been involved, but they could not explain why. They refused to supply a MOR (the Mineral Owner Report ) and we obtained a copy of the alleged divorce which clearly outlined the mineral rights were to be retained with the property division. They are stalling and refuse to allow me out of my lease. I refuse to settle for less than I am owed. Their check for the smaller acreage remains uncashed, thus refusing to accept their new terms.
They changed the terms on the lease where they agreed to pay for 11.12 acres and sent me a check for what THEY feel I own but refuse to provide ANY paperwork substantiating the claim. . .even to my atty.
This is simply a civil contract and they changed the terms. They are not above the civil court system and that is where we will end up with them paying my fees probably to keep my contract if they genuinely obtain a majority of the leases in my section. . that would be amusing. .
Mr. Moeller,
I'm glad you have an attorney. Sounds like you are in the right and they are playing hardball. Doesn't surprise me though, based on how they have acted in the past. Good luck to you!
Some "food for thought" for Elbert and Douglas Co residents:
http://www.denverpost.com/business/ci_18678240
and
http://salon.glenrose.net/default.asp?view=plink&id=2861
read some of the first comments listed at the end of the second article. . while the suit was filed in 2003, it wasn't settled until 2007 and then the CEO commented he "could" refuse to produce the minerals under the "held by production" clause ( in ALL contracts) for 20-30 years thus preventing mineral rights owners from switching companies. .
Stay informed folks, if they drilled tmrw, how would you know when -not only was it producing. .but when your royalties would be processed and distributed? If they drill in 3 yrs, how would you know? Basically you know when you get your first check.
Trust. .hard to earn especially with a bad reputation
AS A FYI.
The first CHK drill site is staked out last month, it is located on the state land south of CR174 just one mile east of CR29. It won't be long before the drill rig and trucks get here.
Hetty is that 6S-64W Section 35 ? you talking about?
There's no permit filed with the state. Not even for a location assessment. . Are ya sure?
http://cogcc.state.co.us/COGIS/DrillingPermits.asp