MIneral rights in reeves county

Oil and Gas Leasing Help
1

My husband and I signed a contract with Dawson Geophysical Company in 2007 to conduct a seismographic investigation in Reeves County. We have not heard from them thus far, and our contract appears to be forever as there is no time limitation written in the contract. The permit supervisor is named Don Davidson.

We heard that Chesapeake Oil and Gas was the company that has contracted with Dawson Geophysical Company.

How could we get off this contract and hopefully lease our land to another oil and gas company? We do not own a large number of acres; it is surface and mineral rights.

Appreciate your help very much.

2

I don’t see that this contract with a geophysical company will have any effect on your leasing your land to any oil and gas company that may be interested, other than the fact that oil and gas companies need to look at seismic data before drilling. If they are truly interested and think there is something there, they will hire their own chosen geophysical company to do a shoot, with your permission. Surely your contract with the seismographic company, which you state has no termination date, doesn’t give them exclusive rights to shoot your property?

3

Mr Hicks,

We should have been more diligent when we signed a contract with no time limit. However I did write to Dawson geophysical company a couple of days ago and waiting for a reply. Your discussion gave me insight.

In that case, should an oil and gas company be interested in signing a contract on my mineral rights in Reeves County / Barnett Shale Toyah District, Texas, I could go ahead with it after due consideration.

Thank you for your reply

Shanthi Fernando

4

Ms. Fernando, did your contract with Dawson contain an option to lease?

5

Dr. Fernando,

From what I read about Dawson Geophysical Company they only provide seismic acquisition (acquiring) services. Dawson acquires and processes 2D, 3D and multi-component seismic data. They are not in the (E & D) exploration and development business. In other words they do not lease and drill for oil/gas. I don’t think you have a contract to lease with them. Seems as though they are only in the seismic business. Good luck.

Clint Liles

6

Dr. Fernando -

If you do not have a proposed lease attached to your Seismic Permit that you negotiated at the time the Permit was signed, then it was a straight Seismic permit, not a Permit with an Option to Lease.

I am not an Attorney, only a Landman, but it is my understanding that all leases, contracts, permits, agreements or conveyances of any kind must have a TERM to be valid. It’s one of the “4 Corners” of any document: 1. Two clearly identified parties, 2. An Effective Date and, if applicable, Term, 3. Adequate Consideration and 4. An adequate Description of the Subject Property.

Since it appears the Geophysical company does not have an option to lease your land (mineral interests), then I’d say you can do anything you want with them. And, since they apparently never showed up to perform the Seismic testing, I’d say that any Permit you gave in 2007 is now no longer in effect.

There has been a lot of leasing and drilling in Reeves County over the past year or more. Have you been approached by any companies yet?

7

No, I have not been approached for a contract. I have been patiently waiting for the seismographic company to approach me for 5 long years. Thank you very much for your reply. Maybe I will have better luck. My mineral rights are in Pecos Toyah region. Total of 40 acres.

Charles Emery Tooke III said:

Dr. Fernando -

If you do not have a proposed lease attached to your Seismic Permit that you negotiated at the time the Permit was signed, then it was a straight Seismic permit, not a Permit with an Option to Lease.

I am not an Attorney, only a Landman, but it is my understanding that all leases, contracts, permits, agreements or conveyances of any kind must have a TERM to be valid. It’s one of the “4 Corners” of any document: 1. Two clearly identified parties, 2. An Effective Date and, if applicable, Term, 3. Adequate Consideration and 4. An adequate Description of the Subject Property.

Since it appears the Geophysical company does not have an option to lease your land (mineral interests), then I’d say you can do anything you want with them. And, since they apparently never showed up to perform the Seismic testing, I’d say that any Permit you gave in 2007 is now no longer in effect.

There has been a lot of leasing and drilling in Reeves County over the past year or more. Have you been approached by any companies yet?

Charles Tooke

8

Dr. Wineetha Shanthi Fernando said:

Thanks a lot for taking the time to reply. Yes, now I will be able to take some action after 5 years. I am so happy I joined this group.

Clint Liles said:

Dr. Fernando,

From what I read about Dawson Geophysical Company they only provide seismic acquisition (acquiring) services. Dawson acquires and processes 2D, 3D and multi-component seismic data. They are not in the (E & D) exploration and development business. In other words, they do not lease and drill for oil/gas. I don’t think you have a contract to lease with them. Seems as though they are only in the seismic business. Good luck.

Clint Liles

9

Dr. Wineetha Shanthi Fernando said:

Thanks a lot for taking the time to reply. Yes, now I will be able to take some action after 5 years. I am so happy I joined this group.

Clint Liles said:

Dr. Fernando,

From what I read about Dawson Geophysical Company they only provide seismic acquisition (acquiring) services. Dawson acquires and processes 2D, 3D and multi-component seismic data. They are not in the (E & D) exploration and development business. In other words, they do not lease and drill for oil/gas. I don’t think you have a contract to lease with them. Seems as though they are only in the seismic business. Good luck.

Clint Liles

10

Yes, it was a lease for seismographic testing. NO option to lease for drilling.

Shanthi Fernando

r w kennedy said:

Ms. Fernando, did your contract with Dawson contain an option to lease?

11

Dr. Fernando -

If you will provide me with your legal description, I will be happy to look up the area and send you what I can find out about leasing in your area and drilling in your area.

Charles

Dr. Wineetha Shanthi Fernando said:

No, I have not been approached for a contract. I have been patiently waiting for the seismographic company to approach me for 5 long years. Thank you very much for your reply. Maybe I will have better luck. My mineral rights are in Pecos Toyah region. Total of 40 acres.

Charles Emery Tooke III said:

Dr. Fernando -

If you do not have a proposed lease attached to your Seismic Permit that you negotiated at the time the Permit was signed, then it was a straight Seismic permit, not a Permit with an Option to Lease.

I am not an Attorney, only a Landman, but it is my understanding that all leases, contracts, permits, agreements or conveyances of any kind must have a TERM to be valid. It’s one of the “4 Corners” of any document: 1. Two clearly identified parties, 2. An Effective Date and, if applicable, Term, 3. Adequate Consideration and 4. An adequate Description of the Subject Property.

Since it appears the Geophysical company does not have an option to lease your land (mineral interests), then I’d say you can do anything you want with them. And, since they apparently never showed up to perform the Seismic testing, I’d say that any Permit you gave in 2007 is now no longer in effect.

There has been a lot of leasing and drilling in Reeves County over the past year or more. Have you been approached by any companies yet?

Charles Tooke

12

My mineral rights in Reeves County are as follows;

Section 4 Blk C-18 - 10 acres

Abstract 5571 Section 1 Block 72 Tract 3 - 10 acres

Abstract 5571 Section 1 Block 72 Tract 26 - 10 acres

Abstract 5571 Section 1 Block 72 Tract 2 - 10 acres

Shanthi Fernando

Charles Emery Tooke III said:

Dr. Fernando -

If you will provide me with your legal description, I will be happy to look up the area and send you what I can find out about leasing in your area and drilling in your area.

Charles

Dr. Wineetha Shanthi Fernando said:

No, I have not been approached for a contract. I have been patiently waiting for the seismographic company to approach me for 5 long years. Thank you very much for your reply. Maybe I will have better luck. My mineral rights are in Pecos Toyah region. Total of 40 acres.

Charles Emery Tooke III said:

Dr. Fernando -

If you do not have a proposed lease attached to your Seismic Permit that you negotiated at the time the Permit was signed, then it was a straight Seismic permit, not a Permit with an Option to Lease.

I am not an Attorney, only a Landman, but it is my understanding that all leases, contracts, permits, agreements or conveyances of any kind must have a TERM to be valid. It’s one of the “4 Corners” of any document: 1. Two clearly identified parties, 2. An Effective Date and, if applicable, Term, 3. Adequate Consideration and 4. An adequate Description of the Subject Property.

Since it appears the Geophysical company does not have an option to lease your land (mineral interests), then I’d say you can do anything you want with them. And, since they apparently never showed up to perform the Seismic testing, I’d say that any Permit you gave in 2007 is now no longer in effect.

There has been a lot of leasing and drilling in Reeves County over the past year or more. Have you been approached by any companies yet?

Charles Tooke

13

Mr Tooke,

Dawson Geophysical company wrote to us today releasing us from the permit.

Hope we would have some luck with an acceptable lease in the near future.

Appreciate your help and advice.

14

Atta Girl!

If you need help negotiating any future lease, I’ll be happy to help.

15

Yes I would like to get a lease on my mineral rights, but I don’t know how this could be done.

Shanthi Fernando

16

Appreciate your reply. Yes I would like to get a lease on my mineral rights, but I don’t know how this could be done. As a land man, do you know any oil and gas company who would be interested in our properties?

Shanthi Fernando

17

Mr. Tooke,

Do you know of any oil and gas companies that would be interested in leasing my mineral rights? Appreciate very much your help.

Shanthi Fernando

Dr. Wineetha Shanthi Fernando said:

My mineral rights in Reeves County are as follows;

Section 4 Blk C-18------ 10 acres

Abstract 5571 Section 1 Block 72 Track 3— 10 acres

Abstract 5571 Section 1 Block 72 Track 26 --10 acres

Abstract 55171 Section 1 Block 72 Track 2----10 acres

Shanthi Fernando

Charles Emery Tooke III said:

Dr. Fernando -

If you will provide me with your legal description, I will be happy to look up the area and send you what I can find out about leasing in your area and drilling in your area.

Charles

Dr. Wineetha Shanthi Fernando said:

No I have not been approached for a contract. I have been patiently waiting for the seismographic company to approach me for 5 long years. Thank you very much for your reply. Maybe I will have better luck. My mineral rights are in Pecos Toyah region. Total of 40 acres.

Charles Emery Tooke III said:

Dr. Fernando -

If you do not have a proposed lease attached to your Seismic Permit that you negotiated at the time the Permit was signed, then it was a straight Seismic permit, not a Permit with an Option to Lease.

I am not an Attorney, only a Landman, but it is my understanding that all leases, contracts, permits, agreements or conveyances of any kind must have a TERM to be valid. It’s one of the “4 Corners” of any document: 1. Two clearly identified parties, 2. An Effective Date and, if applicable, Term, 3. Adequate Consideration and 4. An adequate Description of the Subject Property.

Since it appears the Geophysical company does not have an option to lease your land (mineral interests), then I’d say you can do anything you want with them. And, since they apparently never showed up to perform the Seismic testing, I’d say that any Permit you gave in 2007 is now no longer in effect.

There has been a lot of leasing and drilling in Reeves County over the past year or more. Have you been approached by any companies yet?

Charles Tooke

18

Since I wrote this comment, Dawson Geophysical company has released us from their lease.

Now, after waiting for 5 years I am trying to get my mineral rights leased. I do not have ANY of my minerals leased. If anyone is interested I could provide you with the information.

After writing all information some of our friends in the forum, they fail to reply which is somewhat disappointing.

It is just bad luck on my part!

Thank you in advance

Shanthi Fernando

19

This is my experience: when an oil and gas company wants to lease your land, they contact you, they find you, they make a proposal (then begins the negotiating process, which can take months or not). While I do know that some people place ads on certain oil and gas websites, I have never known anyone who successfully contacted an oil and gas company and said “I have minerals to lease” and got them leased. That is just not the way it works in my experience and those that I know personally who own minerals. As long as everything is on file correctly at the county clerk’s office, the landmen representing the oil and gas companies will contact you if they are interested in leasing your property. Good luck!!

20

Ron,

I agree 100% with what you just posted.