Fayetteville Shale - Oil & Gas Discussion archives

Oil & gas discussion group for those interested in Fayetteville Shale. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Has anyone heard if leases are being renewed once they expire? I have mineral rights in Faulkner County and the lease expired in June 2011 but have not be contacted again.

Anyone have any information on what land owners are being paid for use of property for salt water disposal well locations?

I am looking for information regarding the sale of water from a lake for frac purposes.


i live in cleburne county ark. and our lease ran out in april this year. we were leased with chesapeake and since they sold out to BHPwe hadnt heard anything until 2 days ago. BHP offered $600 an acre and 3/16 royaltys. that is less than we got before. i dont have a lot of experience with mineral rights and leases but i dont want to take less for something that i got more for the first time. if im making a mistake please tell me.

i am a land and mineral owner in cleburne county ark with a few crossover wells where i own some land and minerals in both sections the division order one section state pay the other state STI all i get trom S/W in houston is the land Div will let you know its been 14 mounth sinse well was comp,can and will anyone advise me

BHP Billiton has thrown in the towel and will sell off their Fayetteville Shale property that they bought from Chesapeake. I doubt they get much over half what they gave for it. It has been written down once already.

With current low prices, I am afraid there isn't much liklihood any drilling ramp up is on the horizon and over-production is a major issue.

Last week I fielded calls where royalty owners have conflicts over royalty paid. One was not supposed to have deductions on their check. Another was a lawyer who had a client with 20% royalty in one section and 1/6th in another, but the operator was paying both at 1/6th. Even with a demand letter and the terms very clear, the operator (SWN) refused to adjust the checks. Yet another who has 50% of the minerals, and SWN claims that he has only 25% - a Duhig over-conveyance issue. When Chesapeake sold some property to BP a few years ago, 15% of the titles were wrong. I suspect a similar percent of the royalty owner calculations are wrong as well. Simply shaving off 0.0001 of a royalty interest will make a lot of money for an operator over the years.

I have 75 acres of mineral rights in Pope County. Some company leased for 5 years, and had an option to do it again for another 5 years. I was never contacted again after that. I'm trying to see if some other company would like to lease again. I called Southwestern Energy this morning. I guess I'll call BHP. Is that what one of you would do?

I doubt either have much interest except SWN might have some very small interest. BHP wants out of the play and XTO has shut down for the most part - leaving only SWN. Otherwise, some of the old players from Ft. Smith might have an Atoka play - you might try 479) 434-3553 for Hogback Exploration Co. I think they drilled a well in Pope county some time back. SWN was leasing a few places to the NW corner of the county for shale play.

Would you hold onto the mineral rights or just offer to sell them to the owner of the land?

Without knowing anything else, I never recommend selling mineral rights. They are cheap to hold, could be very valuable in the future. But if you are the "end of the line" (no descendants) or need cash, your best offer might come from the surface owner themselves. And, of course, the "hedge" is to keep 50% and sell 50% (undivided interest)

Dead in the Water...

There is not much to tell with zero rigs running in the basin


In my Nov. posting to NARO's ROAR newsletter, I commented thusly and seemed to have amused the office staff.

Still much the same, natural gas is in such a glut, it will be years to recover.

In an old Monty Python skit, one exclaimed “This bird is definitely deceased. He is dead. He’s joined the choir invisible. This is an ex-parrot.” Much the same can be said for exploration in Arkansas. There simply isn’t much activity.