Susan,
I see no present activity by oil companies in 1N/3E. However, Encana has several high functioning wells in 1N/4E & 1N/5E and permits to drill more wells. These locations are just East of 1N/3E-Beaver Creek area. Encana has a well in 1N/2W and a permit for another well. This location is to the west of 1N/3E. I would say, that your land is located in a very active drilling surrounding.
Thanks for the info.
Thank You Very Much for your time and effort. I don't understand why they, any company, would just lease part of the total NMA on any land unless they don't have to have them all leased to drill on it, or near enough to it to get the oil out from under it. Someone told me they would not get the oil out from under my land without compensating me for a share equal to the going rate for other land leased within that block needed to drill even if I had not signed a lease. It seems to me that they very well could indeed get whatever is under my land with the lateral drilling capabilities and fracking. How is the land owner supposed to know if they are doing it or not?
If the drillers can pay Joe Blow a 1/10th share and drill on his land and pay him for that and actually be getting the oil from a neighbor's land they did not lease, isn't that a very powerful persuasive carrot to put in front of them, plant in their greedy little minds, to entice them to cheat land owners out of what is due them, so they can make more profit? Where's the watchdog on that? Who would ever know it was being done? Is there a certified well inspector type, working for the Government or land owner perhaps, on every platform seeing that the bore is really where they (the drillers) report it to be? So they'd be risking a lawsuit, so what, the players in this TMS make billions every year, they could afford a huge settlement and never look back, Or fight it until they bankrupt the landowner and force them to end the suit.
I don't know if you could answer those many questions I've raised, nor do I expect you to, but I sure would like to see all of them explained to me some day. The love of money is the root of all evil and Greed is a very powerfully persuasive emotion.
I was told once, that I was overly analytical, but I see no harm in wanting the full truth of a matter. Omission of facts is the same as lying about something.
WHATEVER COMES MY WAY BECAUSE GOD WANTED ME TO HAVE IT TO USE FOR HIS PURPOSES IS WHAT HE ALONE DECIDES, ANYWAY YOU LOOK AT IT. ONLY HE KNOWS WHAT THAT WILL BE, IF ANYTHING. I'M CERTAIN THAT IF IT WAS DIRECTLY TIED TO WHAT I DESERVED, IT'D BE ZILCH, FOR SURE!! LOL
Does anyone know when the MOGB will release the permit requests from todays meeting?
Anyone know of Kew Drilling out of Dallas? Just got a call to lease some of our mineral rights. They must be small.
Hi All,
Just joined the Amite County group and would like to get some questions answered. My family has a lease in T2N R6E. A drilling site is being set up for well number 1 and I have some questions that some of you may be able to answer.
1. Our lease expires in March 2014. My understanding is: if actual production begins AFTER the lease expires, a new lease is required. If actual production begins BEFORE the lease expires, then the lease is automatically extended. If this is true, does the lease extension cover all subsequent wells on the unit or just the producing well(s)?
2. How are royalties determined for those folks inside the drill unit? I have seen 2 different opinions. A. Everyone shares in 100% of recovered minerals based on their own percentage of the total acres in the unit regardless of their proximity to the well. B. “Proximity to the horizontal leg” determines what percentage of the recovered minerals an owner will share, and it is also based on their percentage of acres of the entire unit. Which it true – A or B?
3. I have seen many articles that LA Sweet Crude is usually sold at a higher price than heavy crude on the open market. Most say that the average 30 day WTI market price is used as a basis but that price is for heavy crude and thus LA Sweet Crude should sell higher. But I have also seen that the oil price is more likely to be based on a more local oil price i.e. supply/demand. Lots of differing opinions on the internet. So my question really is: is there a method or “rule of thumb” that a mineral owner can use to estimate what oil will be sold for from MS wells?
4. Does the Bottom Hole Location have a specific purpose or is it just the end of a horizontal leg of a well?
If any of the basis or assumptions I have used above are just wrong to begin with, please feel free to enlighten me. I have referenced the Mineral Web, the MS Oil & Gas Board, this blog and many others.
Best Regards to all.
Mr. Easley,
great news about the new well. I don't have the answers to your questions, but would very much like the answers. can you also tell us what section you are in? I too have a lease in T2N R6E.
Thanks Anthony
Some comments on your questions.
As long as operations are ongoing over expiration date, e.g. drilling the well, the is maintained and no new lease is needed. Clauses in the lease about "activity", continuous drilling operations, etc. all relate to not needing to do a new lease if certain operational events take place.
Size of unit impacts what area is held by operations on that unit. I believe that this could be as much as 1920 acres in Mississippi.
Oil prices received for any produced volumes on a specific lease depend on how the operator is marketing his oil. Lots of variables here.
By the way, do you have a "no cost" lease? I.e. Are deductions for oil transportation and related costs taken off the gross market value of produced O&G tied to you lease?
Bottom Hole location is important as to its location in the unit and with respect to lease / unit lines as well as offsetting horizontals.
We just got notified that two wells are being drilled. We own mineral rights in T2N-R4E.
Re: Anthony - the drill unit is for Sections 1 & 12.
Update on my questions: A rep from Goodrich happened to call me tonight and answered all my question. Referring to my questions:
1. They only have to start setting up operations and the lease is extended for the duration of the project.
2. A is the answer: If you are part of a drilling unit you simply divide your acreage by the total drill unit acreage. So if you own mineral rights for 100 acres and the drill unit is 1,000 acres, your royalty is based on 10% of the production.
3. Forgot to ask for the current price but I doubt this guy knew it anyway.
4. Bottom Hole Location is simply a marker for the end of a lateral specifying how far out the lateral is expected to go.
According to this site, http://it-it.facebook.com/AmiteTMS a drilling rig has arrived at the Nunnery 12-H-1 site. Can anyone confirm this. The site is off Hamp Lea Rd. Section T2N-R6E.
I don't have confirmation, but that site is usually pretty accurate. Do you know what "section" that well is in?
Drill Unit is Sections 1 & 12 of T2N-R6E. Drill site is in SW corner of Section 12. According to MSOG, address is Claude Smith Rd, but also accessible from Hamp Lea Rd according to a video posted on the FB page in my previous comment.
Hi everyone. I just joined today. My 2 sisters and I inherited the oil, gas and minerals rights from our grandparents. Area is T4N-R4E. She and Exxon both drilled in the 80’s and we know they capped the wells in sections 20 and 21. Does anyone know of any activity in this area? My sister and I are planning a trip down in April to look around.
Linda, check this map out. It is posted on the Tuscaloosa Trend Blog site. You should be able to see what wells are in your area.
Linda,
I am quite sure that Goodrich is drilling at least one well in T4N-R4E. I don't know what sections. I own land in T2N-R4E that has not been leased to date. However, I do know that EnCana and Goodrich have drilled and are currently now drilling wells around all four sides of the property. Maybe in the near future I'll get a lease offer.
why is all your communication old?
Facebook has a great group for information on Amite County oil and gas news called Tuscaloosa Marine Shale.
Does Everyone have to sign with the same company at 10% when now I'm reading some companies are offering 20% My family has land in Wilkinson county Mississippi Section 8 Township 2N Range 1E SOME FAMILY has signed with Goodrich but now more offer s are coming in to those that hasn't signed like A company from Ted PREMIER Land and Minerals , can we remained ing family members accept a better lease offer . Thanks to whoever can answer that .Keith M.