EOG Wells in Montague Cnty Tx

General Mineral Rights Discussion
1

These wells have been in production since about October 2011 and still waiting on DO. The following is the reason why. I'm not sure exactly what all that means.

I received this correspondence from Ellen Klimenko regarding a Division Order that I received. The division order was for the Welsh Unit 1H (016495 unit tract 4). I contacted her about the Wales Unit 1H and Wales Unit 2H. The following is part of the conversation we had. "Upon further review, it appears that you are in "suspense" because the entire tract you are tied to is in suspense, waiting on a supplemental title opinion for the Wales Unit 1H well (016497 unit tract 6). I see that you are also in suspense in the Wales A Unit #2H (016496) for the same reason - waiting on a supplemental title opinion. The entire tract 6 is in suspense. You are also in suspense in the Welsh Unit 1H (016495 unit tract 4) for the same reason. The entire tract of owners is in suspense. Normally we do not send Division Orders out until owners are released.

2

Richard,

One rationale is that EOG is way behind in getting competent DO title opinions done. You are apparently in a few horizontal well units which makes it even more complicated due to the large number of parcels to examine. You will eventually have a very good payday if your mineral ownership is good and clean.

3

Thank you sir. I respect your opinion and realize EOG is a good company. I'm just impatient.

4

I think I saw the Welsh well in the last EOG annual report as a big discovery. If you have a sizeable royalty interest you may be talking about a lot of money in suspense.

I have a small mineral interest in a well within two miles of your well that started production in december and we have not received a division order nor any information. We have been working thru a landman that cant seem to get any answers, so am glad to see you gave the name of some one in the division order group.

As I see your problem you have two choices, one is do nothing and wait and hope for the best or two hire some one qualified to check into it for you and give you recommendations if you should have any options. Since two will cost you out of pocket money you might look up the wells in RRC web site and find out the names of other owners being held in suspense, then see if they want to share costs to see if you can get information on how serious is the title problem, i.e. can it be possibly fixed in a year or two or is it considered an improbable situation. Horizontal wells present several title problems as several tracts of land small and large may be included in the unit. In Texas, in general, the oil company is permitted to hold all funds until they are satisfied with title. If you decide to spend some money the most probable person to hire is an attorney that has experience in giving abstract title opinions.

5

Ben,

Thanks for the info. I have this posted here to provide information to anyone else with interests in these wells. My probable action is to just be patient and wait. EOG has to be working on this. I'm beginning to understand the process a little better now and really see no alternative but to wait.

6

Richard Byrd

Currious..Did you get title cleared?? Have run into a similar problem

Ben

Richard Downs Byrd said:

Ben,

Thanks for the info. I have this posted here to provide information to anyone else with interests in these wells. My probable action is to just be patient and wait. EOG has to be working on this. I'm beginning to understand the process a little better now and really see no alternative but to wait.

7



Richard Downs Byrd said:

Ben,

Thanks for the info. I have this posted here to provide information to anyone else with interests in these wells. My probable action is to just be patient and wait. EOG has to be working on this. I'm beginning to understand the process a little better now and really see no alternative but to wait.

8

I don't know what title issues exists. Apparently they aren't with me as EOG hasn't asked me any questions. I'm thinking someone else but don't know.

9

EOG may be contacted at 1-877-363-3647 or E-Mail royalty_interest@eogresources.com

or EOG Resources, Inc.

ATTN: Royalty payments

PO Box 4362

Houston, TX 77210-4362

I have called Lisa Cook at the tele. number above

and Ollie Goiodwin at 713-651-6948.

Both responded.

10

I'm in the same boat with you. I wonder if we own pieces of the same rights. I think they started with 2 wells and now have 4 in production. They also have plans to drill more.

Have you heard anything new?

11

Mine is in the 204 acres directly behind the Salona Cemetery. The wells are Benton A, B, & C both all SE of the cemetery.

I noticed that EOG has gotten a permit for the Kleinhans Road which is near. My brother has rights in the Burgess and Martin just N of Salona near Alamo Road.

patty laird said:

I'm in the same boat with you. I wonder if we own pieces of the same rights. I think they started with 2 wells and now have 4 in production. They also have plans to drill more.

Have you heard anything new?

12



Clois Richardson said:

Mine is in the 204 acres directly behind the Salona Cemetery. The wells are Benton A, B, & C both all SE of the cemetery.

I noticed that EOG has gotten a permit for the Kleinhans Road which is near. My brother has rights in the Burgess and Martin just N of Salona near Alamo Road.

patty laird said:

I'm in the same boat with you. I wonder if we own pieces of the same rights. I think they started with 2 wells and now have 4 in production. They also have plans to drill more.

Have you heard anything new?

13

I did hear from Ellen Klimenko a few days ago about a tax statement from Montague County Texas and she said there are still issues with title opinions and she doesn't know when Division Orders will be issued.

14

I wonder if it's common for the process to take this long?

Also we need to look up what the interest/penalties are in Texas. There should be a law somewhere that says they have to pay out on royalty interests within X months or they are subject to interest and penalties. Anyone know what the law is in Texas?

I will be working on looking this up too.