Reeves County, TX - Oil & Gas Discussion archives


#11573

I have a piece of property...N/2 of Section 1, Block 72, Tract 15.

When we purchased this Reeves County land, we were told in writing that we have the "classified mineral rights." I don't know what this means. On the warranty deed it states: "This conveyance is made subject to any effective oil and gas lease, easement or prior reservation of record affecting the herein conveyed lands." What does this mean? Do we have oil/gas rights? Thank you.


#11576

https://www.oilandgaslawyerblog.com/2009/07/the-relinquishment-act-an-inte.html

Clint Liles


#11577

Looking for a partnership to sell water on FM 1216. Colgate, Rosetta Resources, PDC Permian, Carrizo Permian, Devon Energy, Centennial Resources are drilling within 5 miles of my location. Contact me at ■■■■, serious inquiries only!


#11578

Karen Cargill -

Please see the links below.

I pulled up Sec 1, Blk 72, PSL/E B Daniel Survey, A-5571, Reeves Co, TX and it appears to have been Patented in 1943.

I have a call into Walter Talley with the State's General Land Office to determine how it was / is Classified, but he may not get back to me until tomorrow or the next day. You can call Walter yourself if you would like to: ■■■■

GLO%20INFO%20SHEET%2C%20A-5571%20REEVES%20CO%2C%20TX.pdf

I also pulled up information on the Centennial Resources - Barbee 72-1 Well No. 1H that was drilled and completed in 2013. It's Unit is all of Sec 1.

42-■■■■9%20CENTENNIAL%20-%20BARBEE%2072-1%20NO.%201H%20-%20PERMIT.pdf

Then I pulled up the 2017 Mineral Tax Rolls for the Barbee 72-1 No. 1H. The decimal interests reflected in them adds up to 100%, but the name Cargill does not appear.

mineralAppraisalTable.xls

Then I pulled up recent leases in Sec 1 on DrillingInfo. There records might not be complete, but no Cargills there, either.

DI%20LEASE%20DATA%20-%20SEC%201%2C%20BLK%2072%20PSL%2C%20A-5571%20REEVES%20CO%2C%20TX.pdf

I noticed that the State of Texas appears on the 2017 Mineral Tax Rolls as owning a 1/16th Royalty in the Barbee 72-1 No. 1H. Along with everything else that I see, it appears to me that your lands are not "Mineral Classified", where the State retained the Minerals when it Patented the lands and the surface owners act as Agent for the State, but that the State retained a 1/16th Non-Participating Royalty Interest (NPRI) when it Patented the land.

Walter can tell us more.

Either way, since you have not mentioned ever being approached about signing a lease or ratifying one, your minerals appear to have been reserved in prior title.

Hope this helps -


#11579

Ownership depends on the date of the original patent - I would surmise that your property was patented after August 21, 1931 when the State would have reserved 1/16th of the minerals. If so, you should have the right to lease (if there has been no other severance of the minerals to a third party since then). Original patents can be searched at the GLO website: http://www.glo.texas.gov/history/archives/land-grants/index.cfm

Per John McFarland's Article which I recommend everyone read:

"Some landowners were not happy with this result, so they got the Legislature to pass a new law, known as the Relinquishment Act of 1931, which undertook to vest title in the landowners as to 15/16ths of all minerals under their lands. The constitutionality of this new act was quickly challenged, and in 1932, in Empire Gas & Fuel Co. v. State, the Texas Supreme Court wasted no time in declaring the new act unconstitutional.

Finally, in 1931 the Legislature also passed a new sales act providing that, for sales thereafter of State lands, the State would retain only a 1/16th royalty.

So, for sales of mineral-classified public free school land in Texas after September 1, 1895, but before August 21, 1931, the State owns the minerals under those lands, but the surface owner has the right to lease those lands and receives one-half of the bonus, royalty and other consideration payable by the lessee. The lease must be on a form approved by the General Land Office of the State and must be filed with and approved by the General Land Office."


#11580

Atta' Girl, Virginia! Great answer.


#11581

My turn to ask a question!

Can anyone remember the discussion about leasing interests in a unit after the unit has been producing for a while? The conversation was regarding whether a previously unleased owner could, once leased, claim royalties back to the first date of production.


#11582

They can - operator may claim statute of limitations applies (tort 2 yrs, contract 4 yrs).


#11583

Would NOT recommend leasing in that situation without review as it's possible to claim 100% of share of production as unleased mineral owner. Operator will usually get to offset cost of well but if facts reveal intentional trespass, they do not get that benefit.


#11584

Of course, if they decide to lease (and it may turn out to be warranted to participate in all unit well production) they can made payment of all royalties to inception part of the negotiations. ... all to say ... it depends.


#11585

The people involved have been approached by the Operator to either lease or sell because they protested a Rule 37 Application. Their unleased 2 acre tract is too close to two proposed horizontal wellbores and they wanted to slow things down until they knew more.

I reviewed the entire situation with them and they want to lease. I just couldn't find the previous discussion about the options.

Appreciate the info!


#11586

I received a great Bonus offer for a 3 year lease. How important is it in choosing the company who will lease your land for oil royalties? I've had my oil and gas attorney revise the lease. But, what's the possible downside for picking the wrong company, or is there. Are some better than others when it comes to wells being drilled, etc.


#11587

ACTIVITY FOR/ NEAR SECTION 4, A-552

Hello, I am new to the forum. Does anyone have news of activity for this section?

I have a lease that will expire soon. I was told the company applied for a permit to start drilling. Where do I go to find if permit has been issued???


#11588

I am looking for someone that can give me an appraisal for minerals I own in Reeves County,TX.

I would appreciate any contact information.

Robert


#11589

Howard, Railroad Commission's website shows last December Diamondback E&P got a permit to drill from a well site at the very north end of A-552 but the horizontal leg of that well, including the first take point for production, is suppose to start further north in Ward County.

This link should take you to the plat of the 161 acre unit Diamondback formed for that well that doesn't appear to include any acreage in A-552. http://webapps.rrc.state.tx.us/dpimages/img/3700000-3799999//PR0003780098_0001.pdf

Below is RRC's map with A-552 outlined in red. Other activity around it includes a well Diamondback completed in 2014 and two more they have permits to drill in Section 6 less than a mile east of you.



#11590

Howard, the total acreage I mentioned on that proposed Diamondback unit should have been 658 acres,

Here is the link for RRC's website for other online information

http://www.rrc.state.tx.us/about-us/resource-center/research/online-research-queries/


#11591

Robert Montgomery,

For Professional Mineral Appraisal done in Texas call:

Louis Posgate 512)858-7672

or

David Shetler 210)■■■■

Clint Liles


#11592

Question, a company ask to do seismic on my land with other owners. We signed in 2017 about April or may. Signed and waited for check to arrive. Never did, so I called to ask about it. Man said it would be sent out about November. Waited some more, never heard or received check. I called again about a month ago and was told that the higher up company didn't buy the seismic products so they were not able to sell it and we would not be able to collect the money were promised. Is there a remedy for this. Never heard of this happening. Anyone have any suggestion? It would be appreciated. Thanks in advance. Louise


#11593

Louise, if by "remedy" you mean a way to force the company who acquired the permit to pay the agreed bonus, you'd need to ask an attorney, but I don't think typical seismic permits are enforceable contracts. It's similar to what can happen if you give someone a signed/notarized oil lease before you receive the bonus payment.

On future permits I'd insist on including specific time limits by which work has to be completed or the permit terminates, and if they won't agree to exchange payment for the signed permit at least require the payment has to be received before they can enter the property.


#11594

Louise, First, take a look at the exact terms of your seismic permit. Generally, you are to be paid if seismic testing is performed and the data is gathered. The data is then entered into a seismic information bank and sold repeatedly to third parties. The landowner is not being paid if and when the seismic data is purchased and then receiving additional payments every time the data is "sold" - which is really meaning licensed for specific use. Second, find out if any of the other landowners were paid.

Third, send a certified demand letter for payment of the funds due. Best to send a joint letter. Point out that your agreement to the seismic was conditional upon payment and therefore the unauthorized incursion onto your land was both a physical trespass and a subsurface trespass to the minerals and subject to damages. Demand that 100% of the related data be sent to you as the mineral owners and deleted permanently from their records and seismic library. Ask specifically who has had access to the data and where all it is stored and any other questions you can think of. Send the letter to every company associated with the seismic survey, from the land agent to the company physically conducting the seismic to the listed company wanting the data.

In the future, do not sign any seismic permit without making changes, such as that no one can enter the property unless payment is made in advance. Limit the time of the survey to specific number of months from date of signing. Limit to a single seismic survey during that time. Do not allow the permit to be assignable to any other parties. Require that the seismic company or an authorized agent sign and return the permit before seismic is conducted. Do not let anyone tell you that your lessee has said the seismic is fine and you have to agree. If your lessee is conducting seismic solely for its own purposes and related to the lease, that is acceptable. Otherwise it is up to you to approve or not.