Buzz, if i understand your question correctly, all i do on the new GIS viewer is just highlight identify pipelines, i notice when im zoomed out far away, i get some green lines, then when i zoom in close enough to see my well more lines show up, and my well has a green line coming from it and so do all of the surrounding wells. My dads signed a lease with a pipeline company and that pipeline shows up running across his land just like the plot they sent with the contract, RRC says its a oil pipeline. We called a month ago and talked to someone at BHP in Houston office and they said they were running tests and waiting for pipeline. They said maybe first of the year.
The well is now in the oil & gas and completions section on the RRC. But i couldnt discern anything from the forms posted. I did notice they checked keep confidential on the electric log status report, whatever that means. They said it was capped.
The main thing i was wondering was, if its a permitted pipeline will it show up as a green line on the map.
Charles ā Wade is correct. 1/4 is the standard royalty today. Donāt feel shy to ask for it. If your land is āmineral classifiedā you will likely use the State lease form which has the equivalent of a Pugh Clause. You should verify whether there is or isnāt in the lease. You should always ask for one. I donāt know of any operator that would refuse.
@Stephen, out of 477 acres I own 1/2 which is 260 acres. When leased they say 238 acres (canāt understand that but thatās what they pay for). So when I leased it was 25% so out of 100 barrels it would be what?
your acreage in both sections is directly west of our section 18 PSL c-21 where Resolute drilled 2 verticals successfully. Just so you know, the border of Culberson and Reeves is now a very hot area. we have land men calling us almost daily to ask if we have any open acreage in the county line area.
The disadvantage you have is that your interest in those two sections is small enough that if you chose not to lease to them, they could very easily drill and complete without you. they then put the funds allocated to your share in suspense and you become a working interest owner after theyāve gotten all of their costs back and this then leaves you with no bonus. sometimes, letting a landman stew for a little bit allows you to get the upper hand. donāt respond right away, make them call you. recently, i went over the landmanās head and went directly to the senior landman at the Oil Company. we worked things out within a few days and we got what we wanted.
but then again, sign up when you feel the deal is right.
@Wade Caldwell/Meeker - I certainly am grateful for you comments, and confess this was not an easy decision, but my sister and I have decided to accept the offer if there are no drawbacks in the lease itself. Our reasoning is that the offer we have now is already considerably better than the two we were made (also by ConocoPhillips) two years and one year ago, in each case by a different landman. Those two times, I tried to negotiate better terms and was dropped like a hot potato - no answer or counteroffer at all. This time I wanted to get halfway reasonable terms, but not scare anyone away with exaggerated demands. My sister and I are both over 70 and want to get things settled, so this appeared to be a good opportunity.
Naturally the uncertainty remains as to whether we made a good decision or not, but only the future will answer that question. I might also mention that this is the first lease we have negotiated, and that previous attempts to find professional help (O&G attorney) in other leasing matters have been disastrous - either the person addressed did not reply at all, or promised the earth and was then silent. We have never found a reliable O&G attorney who was interested in really doing any work for small mineral interest owners like ourselves, and all recommendations we received were dead ends.
As a result, Iāve pretty well educated myself and try as best I can to judge offers and leases on the basis of the information I can gather. Up to now, that appears to be the best approach for small interest holders. The big guys with large holdings in multiple counties can surely get an O&G attorney by snapping their fingers, but small interest holders are - in my experience (last 10 years) simply uninteresting.
Half of 477 is 238.5 acresā¦so that sounds correct. Hereās the thing. Will the acreage be pooled in with nearby acreage to form a section or 640 acres? If so, you 238.5 acres would earn (238.5 divided by 640 )= 0.3719 of the 25% royalty or 9.297% of the production. You would also have more acreage to drill more wells than the original 477 acres, so win/win potentially. Obviously if the 477 acres is the size of the unit, you would get moreā¦12.5% of the production. If you had 100 barrels of oil per day, or around 3,000 barrels per month, at $100/ barrel(net) you would receive somewhere in the neighborhood of $37,500 for the month. Good luck!
George Smith ā thnaks for offering to help. Iāve arrived at the conclusion that my browser (3 of them) have a setting preventing me from āseeingā what you (and others) are seeing Re: pipeline details on the new RRC Map Viewer.
Funny, I can get the informaion on the āoldā RRC map viewer. Again, thank you! Later ā Buzz
M A Smith - I agree with you that Wade is right, but have already lost two lease offers by haggling too much, and my sister and I are too old to let things drag out much longer. As for a Pugh clause/Freestone rider, I donāt really see much point in that in this case, since both our interests are small (both together 18.5 acres), and they are on unsurveyed land, i.e. they have no set boundaries. If our interests were larger and the land were surveyed (had set boundaries), I would definitely insist on this point to prevent a single, low-producing well from holding the entire interest. But in this case, there isnāt much room on either interest for more than one well, and the location of both interests within the section and block are undefined anyway.
Thank you Stephen for all your time and assistance. You have helped me exceptionally. I truly appreciate it. Just a little more knowledge to assist me next time to release or lease anew.
Could someone explain this: in the lease agreement it say 25% plus lease money. But, when you talk to landman I ask just how much is 25% would be in turn of royalty. He said it would be a 32nd. How in the world would you figure out how much that would mean to you. What is the difference in 1/5 and a 32nd? Just wonderingā¦
Louise, if you own 40 net acres out of a section (640 acres), you therefore would own 1/16th of the royalty. If your lease agreement calls for a quarter royalty, you would own 1/16th of 25% = 1.5625% of all production. In other words, if you had 100 barrels of oil being produced on your acreage daily, you in effect would have 1.5625 barrels of oil or roughly $150 per day headed your way. Same goes for natural gas liquids and nat. gasā¦".less some taxes of course. Hope this is of assistance.
