M.Muldoon #6 A-74

This what I don't understand. If my grandfather had a certain percentage (number of acres) of the mineral rights on that tract, How is it that I am not receiving any royalties from this production? When I read the contract I can't make heads or tails of what is on it and the attorney never has completely explained it to me.

Bigfoot said:

Kraut:

Hope this link will work. I tried it on my e-mail first and it did work; but, if it didn't just search the RRC-W1 reports for Argent, Fayette County beginning on January of 2013 up to now. Both wells are producing oil and gas. The Ivy well 4500 bbls for month of June 2013, slowly down hill to about 2600 bbls this past month. The Kelley well started at about 7M bbls and is down to about 1500 this past month. Steady production on both but, slowly depleting. Tried to send a link on their production; but, would not work.

http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...


I guess the first thing is to look at all the available RRC information to see if this piece of property in whole or part is in either of the well pools. If the answer becomes yes, then something has gone haywire and you should be getting money and my only answer is to call Argent and see if they will help, which is very doubtful and then the next choice is to search out someone that understands this type issue and ask them to help. There are a couple of Attorney's that frequent the blog that would understand and be able to help.
Kraut said:

This what I don't understand. If my grandfather had a certain percentage (number of acres) of the mineral rights on that tract, How is it that I am not receiving any royalties from this production? When I read the contract I can't make heads or tails of what is on it and the attorney never has completely explained it to me.

Bigfoot said:

Kraut:

Hope this link will work. I tried it on my e-mail first and it did work; but, if it didn't just search the RRC-W1 reports for Argent, Fayette County beginning on January of 2013 up to now. Both wells are producing oil and gas. The Ivy well 4500 bbls for month of June 2013, slowly down hill to about 2600 bbls this past month. The Kelley well started at about 7M bbls and is down to about 1500 this past month. Steady production on both but, slowly depleting. Tried to send a link on their production; but, would not work.

http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...

Clint Liles has posted two permits to drill on this tract (M.Muldoon A-74). How do I tell if these two permits are on the 267.2 acres that I have leased? Do the wells, if producing, have to be on the exact 267.2 acres for me to receive royalty checks? So far, I have received no checks. I leased these acres in 2012.

I have answered my own question. Evidently, I have to contact the RRC and look for the P-12. That will give me the names of everyone on the unit in question.

All that I have to do is, when a permit is posted, pull it up and scroll down to the list that says P12. Click on that and the names of all the people listed in that unit will come up.

This lease expired last June with no activity. Soon it will be available again. We are asking for a release of lease from Argent as we speak.

IMO, pushing the company for your release is the smart thing to do. With all the crude pricing turmoil, I don't expect any real leasing activity in our area until things settle out. Even if someone does try to do some leasing, they will be very heavy handed with the lease clauses and very frugal with the offered dollars. I know this isn't good news; but, the last time we had what I call an oil frenzy in our area was way back in the 1980's and to some extent in the very early 90's before everything went to hell in a hand basket, so it may be a long time before we see any broad scale leasing activity in our area again.

Just my luck. Thanks for the reply.

I can't say that I disagree with you on that point; but, yet again, just think about all those guys and their companies that have been leasing up our minerals so they could potentially drill and make some money for them and us. These guys have their necks out on a limb and for the most part, the entire limb is being sawed off little by little every day. Many of them have already gone belly up and with the forecast I see for the immediate future, there will be a heap more follow suit by the end of 2016 if not before. So with that said, most of us mineral owners still have beans on the table and are able to sleep at night and most of them aren't sleeping very well. To look on the bright side, there has been a lot of seismic activity concentrated all over the Muldoon area and it is quite possible that some company will see something in those reports that looks promising and decide to lease your minerals. Hang in there and good luck.