Good advice from Charles.
Also note that you can easily keep track of what areas are being drilled by following the Texas Railroad Commission applications on their website. That said, there is absolutely no risk that you would not know whether a well is planned for your unit or whether the drill path passes under/through your own minerals. If you have the proper description of your minerals location and the survey name and abstract #, it is quite simple to check that info out on the TRRC website as to what drilling is permited or completed. If you were told otherwise directly by the landman that you were talking with then they are flat out lying.
Charles Emery Tooke III said:
Gregory -
In my 30+ years as a Field Landman, I’ve never heard of an owner being fed such a line of crap.
Metering costs for separate interests? They’ve got to be kidding. That’s an accounting issue, and believe me EOG has plenty of Accountants and more cutting edge accounting software than you can imagine.
What is the legal description of the land you have an undivided interest in? I’ll look it up and send you a map and some additional data of what’s happening on the ground.
And what are the names and contact information of the two Landmen for EOG that you spoke with? Do they work for EOG or for a Land Serivces firm contracted by EOG?
These guys are starting to irritate me -
Charles Emery Tooke III
Certified Professional Landman
713-408-2850
fieldlandservices@gmail.com
Gregory McQuay said:Thanks for all your input. I think I need to share a little more information. EOG has leased 26,000 acres of a 95,000 acre ranch/subdivision in South Central Atascosa County. The leased area consists of 2600 ten acre tracts. Approximately 90 % are solely owned by Landowner. I hold a 25% deeded mineral interest only in one of the landlocked 10 acre tracts. There are other tracts (12 to 20) such as mine in the leased area that are not owned 100% by Landowner. Landowner has been active trying to purchase remaining tracts since two producing wells (primarily oil) have come in. I spoke with the landman and land advisor for EOG. This is horizontal drilling, and they are routing their drill path around any tract not owned 100% by Landowner because of metering expenses involved in separate ownership. I am told they may or may not continue this practice in the future, and my tract may or may not come into the drill path. I do not have access to my tract as it is land locked. They could decide to drill through my tract, and I would never know the difference as Landowner has leased the surface rights. I asked the landman if EOG was interested in purchasing my mineral interest. He advised me that it would be better to work with Landowner. I know this sounds like a crap shoot, and it probably is. In light of this, would anyone recommend I sell the mineral rights, and if so, how much? The landman said property owners were getting a minimum of $250 and in some cases more $2,500 per acre for a lease. Any further suggestions?
David J. Gaar said:Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.