Reeves County, TX - Oil & Gas Discussion archives

Kathryn, negotiate and ask around to fellow neighbors where the pipeline is crossing. I’m not familiar with the going rate per rod BUT there are individuals and entities that have made a living on easement/row negotiations. What you don’t want is to ignore and eminent domain proceeding go through and get less than $50. Hope that helps!

What is a “Shut in” well?

Shut-In-Well

A well which is capable of producing but is not presently producing. Reasons for a well being shut in may be lack of equipment, market or other.

Clint Liles

1 Like

thanks Clint. We have mineral rights in Reeves county, sec 74 , blk 13, A-1879. I noticed the well to the south west of our property went from permitted to shut in and also noticed that the property just to the east has 4 permitted wells planned. Are there any updates about Apache’s immediate plans for this area that I can find?

I received a notification of pooling from the RRC. I have a small interest, but it is not under lease. It appears that, after the operator receives twice its drilling and completion cost, I would have a prorated share. I assume this would be a working interest percentage. Have any of you experienced this before?

Why didn’t you lease to them?

Anybody have any information on section 247 block 13 H&GN Survey? Information like, potential permits, plans to develop, lease activity?

Richard the last permit approved(API 389-35818) for your area of Block 13 is in Section 248 just to the North of your minerals. Permit was approved on March 29, 2017 for a Wolfcamp well/Centennial Resources:

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli…

Another permitted location(API 389-35812) to the South in Section 216/Block 13/March 21, 2017/Clayton Williams…

Lots of activity in Block 13.

GIS Map of Reeves County Block 13/Section 247/A-515 and surrounding area:

CLICK ON MAP TO ENLARGE

Clint Liles

Burns barns down? I hope not! I’m not sure what that means. Is it industry lingo? Does anyone have a referral to an attorney who knows this market? Thanks, Joyce

Richard - that section is surrounded by horizontal wells in all directions, mostly operated by Centennial and Noble Energy. There aren’t any horizontal permits on that section yet but it’s just a matter of time.

Will Pooling at Marshall Dillon State 2–25 Unit A 1H extend our lease? Our lease expires in September. Rosetta /Noble holds our lease now. My family is looking for the advice of an attorney. I have read that pooling with other leassors does extend the lease to the extent theirs are in their contract. We want to protect our interests and that of our heirs.

Joyce,

that’s slang for saying you hope its a fantastic well or it’s a ‘barn burner’.

DRILL BABY DRILL

Clint Liles

Which is more lucrative? Hold mineral rights or sell with the prospect that possibly they might soon drill? Talking only 5 acres–so 1/60 royalty will probably not be prolific and may never really materialize.

I think it is a great question every mineral owner should consider. If a leasing opportunity comes your way, get a good lease with a good operator. As far as to sell or not, a lot of people regurgitate the “I’ll never sell” mantra. Another board member suggested that this approach neglects to examine opportunity cost. I tend to agree- keep an open mind in the casino.

Ultimately, I believe the answer on selling is situational; what kind of lease has one signed and with which operator, where are you in life, what is the strategy and plan for these minerals, what do the offers look like wrt the production in a hyper-specific area, how many acres being proposed vs. your entire mineral estate, but most importantly, what are your needs?

Funny enough, we are going through all of these questions with our own grandmother in Gaines County, TX :slight_smile:

Hope your Marshall Dillon State 2–25 Unit A 1H burns somebodies barn down!

Hi Joyce,

It is my understanding that the filing of a Pooling Agreement or Declaration does not in itself interrupt the running of the Primary Term of any lease.

I haven’t seen your lease, but typically the Commencement of Operations for the drilling of a Well prior to the end of your Primary Term will hold your lease in effect beyond the end of the Primary Term.

I am sure others here can add to this, but my understanding is that Commencement of Operations requires a reasonably consistent series of physical events, from Surveying the land and staking out a Drill Site, preparing a Drill Site, moving a Drilling Rig in, the actual Spudding of a Well (When the Drill Bit actually hits the ground the Well is “Spud In” or “Spudded In”) and the continuous drilling of a Well through it’s expected successful Completion or plugging as a Dry Hole.

With the lack of availability of Drilling Rigs and Completion Rigs occasionally being a part of the picture, the timeline of events can be effected and perhaps appear to people to be taking too long. But an honest effort on the part of an oil and gas company (a “Prudent Operator”) to begin Continuous Operations prior to the termination of your lease and to carry on said Operations through the drilling of a Well expected to be successfully complete will hold your lease beyond it’s primary term. All leases you are pooled with, as well.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Hi Kevin -

You may be confusing Oil and Gas Leases for oil and gas development and Right of Way Agreements for pipelines.

Oil and Gas Leases are only for oil and gas development (drilling and producing oil and gas). The companies acquire Right of Way Agreements from the Surface Owners of the lands they cross.

Do you and your extended family own Mineral Rights or Surface Rights or both?

Joyce -

Many of us would advise you to contact Wade Caldwell in San Antonio, TX. He is a regular contributor to The Forum and I believe one of it’s Sponsors.

Go to: http://www.beclaw.com/

Wade is the tall one in the middle, back row. You can also contact him through The Forum’s main page.

I have a legal question for the group. I have a small undivided interest in two sections in Reeves Co. I leased one about 3 years ago along with my other family members. Since then, a pipeline ROW was also contracted. A second pipeline ROW was contracted on the second section but I have no lease. Recently I found that some of my family members had been contacted and leased the property 3 years ago to Cimarex. They are now receiving their 4th year delay payment. I discussed the problem with Cimarex and they have refused to rectify the oversight. Do I have any options here? I believe there are more family members than just myself that got overlooked.

Perhaps someone will know the answer. In the image of sections near the river, it seems all the horizontal wells run along east-west (of sw-ne on diagonal sections.) Is there a reason? Would the next set of laterals be a 90 degrees to those at a different depth?

Thanks