Reno County, Kansas oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Anyone know what the price for a lease are in Southwest Reno County? I've heard that Unit Petroleum drilled a very good well and prices have gone up.
Tom who are you leasing for? (Client)
How does that work? Doesn't there have to be some sort of conflict of interest leasing the same area for two clients?
I am thinking Angus Natural Resources (jr Oil) and Sandridge (Major).
Tom what are the going rates for leases in SW Reno County? I've got an undivided interest in a couple of tracts, the remaining interest is lease to CHK. T26S-10W and 25S-10W
John,
They are going to low ball you if you start requesting what their terms/bonus is. Let them come to you.
Thanks Earl. I've been leasing/buying/selling/owning mineral rights since 1978 I understand how it works. Believe it or not I don't often take the first offer..haha. Tom how many leases are you buying at those prices? I have had the CHK people offer me $500/acre, although their offer is always higher and they rarely come through with payment. The Overall Well that unit drilled is rumored to be 500+ BBLS/day so I might wait it out.
Tom Could you please send me your phone number to natefehringer@yahoo.com. I have a few questions about reserving formations in a lease that only a landman could answer.
I have one company that wants to store Natural Gas in a deep, old, played out conventional well, that’s deeper than the Mississippi formations. And another company that wants to horizontal drill in the Mississippi for gas and oil. They don’t know about each other. Can I reserve one formation in the lease for the Gas Storage company and another for the horizontal drilling.
Could you even sell a lease like that to an oil company? I'm thinking they wouldn't buy a lease near a formation storing natural gas, because the fracking might disturb the formation causing the gas to migrate Do you think I'm screwed or can I lease two different formation to two different companies.
Thank You
Nathan
Nate you are probably right if you are near that Northern Natural gas storage field they will file a suit immediately on any operator that is producing gas within their storage field. They have been doing that since the early 1990s. Call Jack Black the attorney in Pratt Kansas he will tell you all about it.
John, Thanks for the advice. The only Jack Black in Pratt is now the district(City) attorney. I hope he's the same guy.
I'm in quit the predicament. The gas storage company analysis says the gas has spread a bit more than anticipated so they are including my land in their buffer zone. They can take the mineral right by eminent domain if needed. Right now I'm in the middle of negotiating the lease for the Gas Storage right now.
With all this going on I get another, different lease offer for the horizonal Oil play, and the two companies know nothing about each other because I'm still the owner of all the mineral rights. I have talked to a few attorney's and most really have no idea what to do. I do have a few of my own ideas but I'm open to any suggestions if anyone out there has any.
I would start here with respect to the gas storage situation:
Kansas Corporation Commission
1500 SW Arrowhead Road
Topeka, Kansas 66604
785-271-3100
Thomas Wright, Chair
Michael Moffet, Commissioner
Joseph Harkins, Commissioner
Kansas Corporation Commission
Oil & Gas Conservation Division
Finney State Office Building
130 S. Market - Rm 2078
Wichita, Kansas 67202
316-337-6200
Doug Louis, Director
I believe Jack is the new district attorney the previous one (Gordon Stull) stepped down. Jack is a great resource for this kind of thing he has represented several companies who were sued by Northern Natural.
Jim and John, thank you for for the contact information. I'll be taking Friday afternoon off to contact these people. It amazing how much time these things eat up.
Nate
Anyone know what rights are going for roughly eastern Reno County south and west of the Burrton Field? I would call Tom Bay but I don't have a phone number. Or, if you respond Tom, I can give you my contact info.
What are the most recent lease rates in Southwest Reno County? I would like to know in light of a recent inquiry regarding my interest rights.
We own 38.6 ac in a leased section. Chesapeake Energy offered a lease a year ago but pulled out of the area before we agreed. Since then we contacted Shell but they were not interested, I think due to size. SGOMI recently did seismic survey adjacent to us. Can anyone offer advice as to how we might lease our land?
Does anyone know what the going rate per rod is for Pipeline Right of Way in the Reno County area?