My extended family owns mineral rights in sections 30, 32, 36, & 38, block 56, township 3-south,T&P Co Survey, Reeves County. The lease we now ave with Cimarex is about to expire and the word is they will nor be releasing. We have received an offer $1500 per nma, 25% royalty for 3 years. My question is this a fair offer and is there any drilling activity in the area. Any help will be greatly appreciated
Stephen, as always, I love your attitude! Linton
Ok Iām new to the GroupI just need to see if i can get some answers, fast story is that my mother in law just found out that she has 5 acers of mineral rights that her and her bother in law have south of town, I located where it was located which is south of Pecos close o the BF Goodrich test track . Ok I went out there and it has a SWD with 4 pumping units on the 5 acers.
Billy,
Thank your son for me for his military service. First I would try to find out what company is producing the wells and contact them. If these wells have been producing for several years the State of Texas may be holding monies for her. And it may be possible she will need to contact an attorney for legal advise/help.
Clint Liles
No Clint its not me but my youngest son and thank you , Iām Proud of him. My question is what is needed to be done on collecting on monies owed to her for the production over the years of production and disposal.
Adriana,
To the northeast about 2 miles there are some very good oil and gas wells drilled by Clayton Williams. One of those wells(API 389-33928) I just checked the Completion Report and it showed 6884 BOPD(Barrels Oil Per Day)/431,000 MCF(Million Cubic Feet) Gas per Day. If those were my minerals I would never sell them. You are in a very good area for future wells. I see no activity at the present time.
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?methodā¦
GIS Map of Reeves County Block 13/Section 134/Abstract 1881:
Clint Liles
Hello Billy,
What is the question you want answers toā¦And Welcome to Mineral Rights Forum.
Now I have a question for you. Is that your picture in the profile picture? If it is, āThank Youā for your service to our Country.
Clint Liles
I am VERY new to this. I own 4 mineral acres blk 13 section 134 Reeves Co. Is thereany activity in this area? I have not leases since Oct '14. Would it be wise to sell?
Adriana,
Correction:684 BOPD
Clint Liles
Billy Minter - Answer depends on whether or not your mother-in-law owns the surface. In Texas, water wells and saltwater disposal wells are related to the surface rights and not to the mineral owners. Also, caliche and sulphur belong to the surface owner. If your mother-in-law only owns the minerals, and not the surface, then her interests will be limited to oil and gas wells (and certain other minerals). If she owns some or all of the surface, then she needs to contact the disposal well operator to discuss her rights.
Clint Thank you for the info.
Will some expert out there please define for me the terms: Unitization, as in "unitized landā¦considered for operations upon the Leased Premises. Also, communitization, as in "no communitization of royalty interest. thanks
Are you a mineral owner looking at a lease or are you an NPRI looking at ratification of a lease or unit? Some leases will contain anti-communitization language designed to keep multiple tracts within the lease from being unitized. So a lease can contain interests in several sections but well in one section will not hold other sections where there is no drilling. Within a unit, you do not want to cross convey the minerals or royalty interests among owners as that can have adverse legal consequences. Each lease and its terms will remain separate for those owner(s). No one can really give you an opinion with limited language because there may be other language in the document which amends or overrides a provision.
TennisD, thanks for your reply. Iām a mineral owner drawing up my own lease and Iām trying to make sure there are no conflicts, as you mention, between my Retained acreage, pooling and āno communitizationā(of royalties/interest) clauses. I realize w/o seeing the lease anyone would be pressed to give an opinion, but am seeking general info or to confirm in my own mind Iām correct in the lease language. thanks again for your input.
Shut-well
Two horizontal wells were drilled in 2012 by BHP from the same platform, one to the south and one to the north. The south extension in Block 72 went into productions and is a good producing gas well. The one to the north in Block C17 was shut in and the completion report has the well type as āShut-in Producer.ā This well with no production was drilled during the primary lease and by the terms of the lease, 90 days after the expiration of the primary lease, a shut-in Royalty Payment is required to hold the lease. The 90 days have come and gone with no payment. At what point is the lease null and void. Or can the company come in later, pay the nominal insignificant $10 per acre per annum shut-in royalty payment and continue to hold the lease. How long can they hold the lease with no production? Obviously, the lease is poorly written with little protection for the lessor mineral owner.
Does anyone have any advice on how this should be handled in order to get the well into producrtion or lease it so another company can step in?
Donny
Donny, It all depends on your lease. Does it cover acreage in both wells or only in a shut - in well? Do you have language for severance so producing minerals only hold assigned acreage? Does lease provide that any production holds all minerals? If so and you are receiving royalties on first well, then you will not necessarily be due any shut-in payment for second well. It all depends on the language in your lease and the interaction of the various clauses. You should email BHP and ask about the status of the 2nd well and any plans for that acreage. Or ask if the lease acreage has expired and if so can you get a release filed. BHP can help explain the lease terms to you.
BHP likely does not own those wells anymore. Silverback Operating is probably the current operator and owner of the lease.
No problem. That is a good area to own minerals. I suspect you shouldnāt have any issues getting it leased. One of the forum sponsors could probably help you find some interested lessees if you arenāt already being contacted by folks to lease the properties.
Donny ā I suspect you are referencing these two (2) wells:
BARBEE 72-1 #1H
MCAFEE C17-21 #1H
If so, BHP assigned them to Silverback Exploration, LLC, effective July 1, 2014. (FYI, Iām reading from the Assignment, Bill of Sale and Conveyance.)
If Iām not mistaken, the McAfee well was never completed. Later ā Buzz
I found courthousedirect.com to be a good resource to see if leases have been assigned. Creating an account doesnāt cost anything and you can do a search to find the documents. Downloading the documents is a nominal cost.