Fayette County, TX - Oil & Gas Lease

Yes that's for sure the RINO's funded darn near everything that was asked for and I think then some !!

Hello all:

It is getting close to a new year and our chances of getting an opportunity to roll in the pocket "green stuff" is looking mighty slim for awhile anyway. The lease bonus money sure was good while it lasted and much better than if we had never even gotten a smell like many people not too far from us on the East, West and North, so I count my blessing each day when I get up. Most or many of us have seen this before so it is of no great surprise. One of my leases with Geo Southern just expired on the 15th and I just finished writing my Release demand letter, a couple of days ago and planning on making a trip to the Post Office today. Personally I don't believe this will be the time to sign a lease anyway; but, my lease is only one part of a large block of about 1400 contiguous acres that Geo Southern has let lapse. Probably no great hurry; but, just getting ready for the next go around. Since many people are going to have leases that are expiring, now is the time to keep our blog rolling so we can update our leases for the next go around.

Hope everyone had a Merry Christmas and are getting ready for a great upcoming year.

How about a copy or framework of your Release demand letter, I too have an expired lease.

Thanks, Darrell

Darrell:

Don't have your e-mail; but, will try to send it as a private message on this blog. I don't believe I have ever sent an attachment from there; but, I will try that before we go any further.

Thanks I sent you an email address, Happy New Year.

Darrell:

Some reason it never came through. I sent another message with my e-mail address on it just to make sure it is the correct address.

Should be on its way to your email... I found it on a PM

Happy New Year, folks;

I have a question about my lease it states:

LIMITED WARRANTY

"This lease is executed warranty of title by through and under Lessor only, but not otherwise. "

What does that really mean?

Darrell:

First off, I am no expert; but, this came up when I was working on a lease last year. I wanted to take the warranty of title totally out of my lease; but, after having a three way meeting in the attorney's office with the oil company rep, my attorney and me, I finally agreed to a warranty clause with this wording. My personal feeling is that I will never agree to another lease with any warranty; but, to answer your question, it was explained to me this way. A full warranty is saying that the lessor (that's you and I) agree that we guarantee that our titles are basically perfect and that we own everything that our titles says we do all the way back to the Spanish Land Grant in some cases.

The "by through and under, only" is saying that "we" are guaranteeing that as far as we know that everything i the title is correct. Basically that "we" haven't sold something or done something that is different than what the titles say.

I'm sure there are some better explanations to be had; but, that is the way It was put to me by my attorney and the Oil company. I will say again, that I will not ever sign another lease with either of these warranties in the lease. These guys run titles before they lease and then at least two more times if there is a well. They are the experts, not us. All we know is we have gone through an attorney and a title company or maybe even inherited the property. They need to do their job and leave us out of it.

Vielen Dank, Bigfoot.

Darrell:

Your are quite welcome. Again, I have that warranty phrase in one of my latest leases and once it goes South and given the environment we are in today, I expect that it will. I will never sign a lease with that in it. I suppose this is lawyer talk rather than "human talk" which is ridiculous to begin with.

I have one GeoSouthern lease that just expired in November and one of their land brokers called me last week to see if I was willing to lease again; but, what I really think he was wanting to know, was I willing to re-lease by signing the same lease we did back in 2010. After I told him that we may still be dumb; but, we are a hell of a lot more informed today,than we were back in 2010, so we would have to do a new upgraded lease, I doubt that he will call back.

Well, I got the call from GeoSouthern this afternoon and my hunch was correct. The young landman representing GeoSouthern said they would still be willing to re-lease if we signed the same lease; but, they were shutting down everything as of January 13th and that he would be without a job as of that day unless his broker could find some odd jobs. Their offer was $250 bonus, 20% royalty for a 3 year lease. I told him that I would wait until we get better leasing conditions.

Interesting.Guess the lower oil prices continue to claim victims. Saw today on Fox Business that Houston is beginning to see a slight drop in the housing market/demand, as of late last year compared to earlier years. The builder who was interviewed attributed it to the low oil prices.

Thanks for the info.

I guess most places are slow with prices the way they are but does anybody know of a landman in the area (Fayette County Tx.) that will do some work for us?

Folks:

As a follow up to the "Free Royalty" issue that was covered in the September TLMA newsletter, I though most of our contributors would be interested to see the follow up of the Chesapeake v. Hyder Supreme Court Case.

See attached:

3085-HyderMajorityOpinion2.pdf (467 KB)

I just sent off a division order, anyone have an idea how long it might be till a check is issued? The company is
Petromax. thanks

Probably within 30 days based on my non Petromax experience

Thanks!

lol

Got an email from Petromax 5 month statement oil price from aug to dec roughly 44 then down to 33 and gas roughly 2.50 down to 1.88. Was about roughly initially 300bpd, going to be rough paying for that well at this price. They were promising to include rest of my acreage, the other 90%, there in a second well to be drilled this year, I don't see that happening in this climate. More of the wait and see again. They actually had hooked up the gas pipeline to a gathering system, while the drill rigs were still drilling, that had a little kind of a hook up spot already about 100 yards away which was put in during the chalk boom.