I don't have a lease

All my neighbors are collecting on their leases. My leasing company dropped my lease. I have checked with Texas comptrollers to see if my money was there it wasn’t. How should I proceed? I have called my leasing company no one will return my calls or emails. This has been going on for about two years. XTO has all the wells in my area. What are my options?

You should contact XTO and see if they are interested in leasing your land. Also, see if there is any info online for Texas that shows the current well drilling units. Make sure your land isn’t included in one.

Even if his land was included in a drilling unit, that is no guarantee that he would be entitled to any production revenue.



Randy S said:
You should contact XTO and see if they are interested in leasing your land. Also, see if there is any info online for Texas that shows the current well drilling units. Make sure your land isn't included in one.

Perhaps a definition of a drilling unit would help.

From Railroad Commission: “Drilling unit–The acreage assigned to a well for drilling purposes”

Rusty Ferguson said:

Perhaps a definition of a drilling unit would help.

Dear Randy,

I will not waste a lot of my time on education here, but if you are not the drillsite tract (which is not a drilling unit) you have NO intrinsic share of production on lands located in the State of Texas.

There may be an opportunity to force your way in through a Section 102 (Mineral Interest Pooling Act) action. That is about it.

Buddy




Randy S said:

From Railroad Commission:
“Drilling unit–The acreage assigned to a well for drilling purposes”

Rusty Ferguson said:
Perhaps a definition of a drilling unit would help.

I have had little experience in Texas but all other states I have worked, the state requires a certain amount of acres to drill a well, creating a “drilling unit” . An operator must have all the land in that unit leased or force it into the unit. All the people that contribute acreage to that well unit share in the production from that well.

I did not know that in Texas, only the owner of the tract the well is on is due royalties.

If I’m a waste of your time, don’t reply.

Buddy Cotten said:

Dear Randy,

I will not waste a lot of my time on education here, but if you are not the drillsite tract (which is not a drilling unit) you have NO intrinsic share of production on lands located in the State of Texas.

There may be an opportunity to force your way in through a Section 102 (Mineral Interest Pooling Act) action. That is about it.

Buddy




Randy S said:
From Railroad Commission:
“Drilling unit–The acreage assigned to a well for drilling purposes”

Rusty Ferguson said:
Perhaps a definition of a drilling unit would help.

Only the tract of land that the well is located on, or lands pooled therewith is entitled to a share of production. No lease, no voluntary pooling. You can force your way in through a MIPA action, in some limited cases ratify the unit (if the unit agreement is so poorly crafted that it constitutes an offer to pool).

“An operator must have all the land in that unit leased or force it into the unit. All the people that contribute acreage to that well unit share in the production from that well.”

Not in Texas.
I understand that you are a Michigan landman, not Texas, hence the comment to not waste a lot of my time in explaining recourses and law that take up literally volumes of case law to someone 1500 miles away from the law of the land here.

My only reason to comment in the first place is so that the landowner would not be misinformed.

No degradation of you was intended or implied.


Randy S said:
I have had little experience in Texas but all other states I have worked, the state requires a certain amount of acres to drill a well, creating a "drilling unit" . An operator must have all the land in that unit leased or force it into the unit. All the people that contribute acreage to that well unit share in the production from that well.

I did not know that in Texas, only the owner of the tract the well is on is due royalties.

If I'm a waste of your time, don't reply.

Buddy Cotten said:
Dear Randy,

I will not waste a lot of my time on education here, but if you are not the drillsite tract (which is not a drilling unit) you have NO intrinsic share of production on lands located in the State of Texas.

There may be an opportunity to force your way in through a Section 102 (Mineral Interest Pooling Act) action. That is about it.

Buddy




Randy S said:
From Railroad Commission:
"Drilling unit--The acreage assigned to a well for drilling purposes"

Rusty Ferguson said:
Perhaps a definition of a drilling unit would help.

Here is a cheat sheet on Texas pooling that is simplistic but sets forth the general idea:



Buddy Cotten said:
Only the tract of land that the well is located on, or lands pooled therewith is entitled to a share of production. No lease, no voluntary pooling. You can force your way in through a MIPA action, in some limited cases ratify the unit (if the unit agreement is so poorly crafted that it constitutes an offer to pool).

"An operator must have all the land in that unit leased or force it into the unit. All the people that contribute acreage to that well unit share in the production from that well."

Not in Texas.

I understand that you are a Michigan landman, not Texas, hence the comment to not waste a lot of my time in explaining recourses and law that take up literally volumes of case law to someone 1500 miles away from the law of the land here.

My only reason to comment in the first place is so that the landowner would not be misinformed.

No degradation of you was intended or implied.

Buddy Cotten

www.cottenoilproperties.com


Randy S said:
I have had little experience in Texas but all other states I have worked, the state requires a certain amount of acres to drill a well, creating a "drilling unit" . An operator must have all the land in that unit leased or force it into the unit. All the people that contribute acreage to that well unit share in the production from that well.

I did not know that in Texas, only the owner of the tract the well is on is due royalties.

If I'm a waste of your time, don't reply.

Buddy Cotten said:
Dear Randy,

I will not waste a lot of my time on education here, but if you are not the drillsite tract (which is not a drilling unit) you have NO intrinsic share of production on lands located in the State of Texas.

There may be an opportunity to force your way in through a Section 102 (Mineral Interest Pooling Act) action. That is about it.

Buddy




Randy S said:
From Railroad Commission:
"Drilling unit--The acreage assigned to a well for drilling purposes"

Rusty Ferguson said:
Perhaps a definition of a drilling unit would help.