How does this relate to where the well is actually drilled?
The collar of the well bore is not a factor in determining unit participation. Only the locations of the perforations in the production casing (pipe) matter and they must all be within the target formation(s) of the completion permit.
GLH
Thanks Gary! That explained why the direction of a horizontal well changed when we started negotiations with the drilling company! Their well bore is in the section below us and the original direction was north (into our holdings) but once we started talking about leasing our mineral rights (the entire half of our section) the direction changed and went south. Now that they hold our lease I wonder when they will change back to the north? Hope it is soon!!
DKW,
A producing unit is an area designated for a geologic formation located in the subsurface. If your minerals include that geologic formation and fall within the subsurface unit area, you are entitled to a share of the production from the unit in accordance with your lease and the unit regulations.
Mr. Schmidt
Land descriptions are used instead of meets and bounds used in PA.
A section is 640 acres usually. You have a fractional interest in 200 gross surface acres. Google township and range for an understanding or sections within Townships. there are usually 36 sections in a township.
Multiply your fractional interest by 200 to get net acres. If you get an offer to lease or buy, learn more about what is going on with your 200 acres. Many folks here will help you.
Mr. Schmidt, Are you related to Tharan Schmidt? His lease just expired.
A review of your section 7 tells me you are in a good bargaining position. If it were me, I wouldn’t deal with anyone but Bonanza. They seem to have figured out the Niobrara completions on two sides of your land. Your lease will be most valuable to them if they continue to have success. Second choice is EOG but it seems they can’t decide how important this area is to them.
To deal with anyone not drilling wells in your area is to forfeit profits that should be yours.
Gary Hutchinson
Basic question from a new member. I have fractional mineral interests in two Weld Co parcels. One is described as: Township 5 North, Range 61 West, 6th P.M., Section 7, NE, NENW. I’ve found 5N 61 Section 7 on the COGCC maps. How do I interpret the 6th P.M. and the NE and NENW descriptors? And, how big is a Section? Any help would be appreciated.
Thanks, Gary. Rights are part of my father’s estate, and I’m the executor. We have an offer to lease and I am trying to gain a modest understanding of how this all fits together and what the activity level is in this area. I’ve visited the COGCC site and seen limited drilling and permit activity in neighboring sections. I’ll figure it out, but if you can suggest other online resources, I’d be grateful. I appreciate your time and information.
Thanks, Gary. Wrapping up the paperwork on a Bonanza lease at the moment. I appreciate the comments.
Richard Schmidt
Gary, sorry, should read your entire post before responding. No, no relation to anyone named Tharan Schmidt. The part of our family that lived in Colorado was named Budelier.
Richard Schmidt
I’m in need of an attorney to help us with the clarification, interpretation, and negotiation of a lease we currently have. Not someone we intend to retain indefinitely, but who can help us with these specifics, without it costing us an arm and a leg. Can anyone recommend someone in the area ( Weld County ) that is on the side of the rights holder and not the oil companies or brokers?
DKW, you can give me a call off-line if you want. I’ve worked with a couple of others on this forum & they’ve recommended me to others. 720-341-1396; melliott@elliott-legal.com; www.elliott-legal.com.
[Sorry if I haven’t been too active on this forum recently, but have the good fortune to be pretty busy.]
i have an offer from noble energy for my minerals in township 9N, range 61W. i don’t much like it, and wonder if anyone has gotten good bonus and royalty l% results in that area?
thanks!
Deanne the metrics are for net check per month. Right now almost everything i see at auction or borkered sales is about 36 to 48 times net cash flow. So if you get a royalty total of say $3,300 each mont take that times 36 or 48 and that is what you can expect for someone to buy them.
Are you looking to sell? your minerals? i know of a very fair buyer that i sold some and he gave me a good price for my stuff in Weld and Adams.
Jason, what do you mean you just went thru all this? I haven’t stated what was a fair price all I know is I don’t believe mine are at the lowest range of 36. I’m simply trying to determine what is fair and I appreciate all input so I can make an informed decision thank you
Thank you Jason for clarifying that. I know this will be frustrating for me as well. Once you found the buyer how long does it take to close on the sale?
I had about 8 offers and not one company/person offered me over 48 times my last 12 months royalty check average i showed them.
This is what I mean.
Deanne: be sure to factor in additional wells that might be coming on.
There are numerous good buyers everywhere. 36x is a little low.
Yes Steve, I agree
Is that T2N, R64W, Section 8 ?