Has anybody here had experience with Jay Management LLC as owner or operator of a lease? In 2020 a lease of mine (dated 1991) was assigned to them along with almost 200 other leases in six fields in Leon County. My lease is in A-500, MC Lee Survey in the Alabama Ferry (Glen Rose “D” West) field–this is just a bit east of I-45 about 1/2 way between Centerville and Buffalo. At the time of assignment, the production had dwindled to almost nothing on the well. I have heard nothing from them, ever. Since then, they have reported 30,000 barrels of oil from this field, although no mention of my particular well. Could it have been pooled? A search of them shows they are Temporarily Closed. I think I will try to contact them anyway. Thanks!
In Texas, the Texas RRC typically requires operators to conduct well tests to assess various aspects of oil and gas wells, including production rates, reservoir characteristics, and well integrity. These tests are crucial for regulatory compliance and ensuring the safe and efficient operation of oil and gas wells.
This is one way to check. Of course, it’s essential to reach out to the operator directly for any queries or issues regarding your royalty payments. It’s part of their obligations too.
Disclaimer: I’m an engineer, not a lawyer or landman. Please take a grain of salt on my comments.
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Last week I passed by the Storage tanks and or operating area for the Alabama Ferry Water Flood area on Hwy 7 east of Centerville. There appears to be current activity at this site.
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The Alabama Ferry (Glenrose D, West) field is different from the Alabama Ferry (Glenrose “D”) field, so be sure that you are not mixing them up. Jay’s wells in Glenrose “D” seem to all be under a single RRC lease 05-03340. The Glenrose D, West wells are under varying RRC lease numbers. If you post the well, then you will get better responses for the history of your well.
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Hey TennisDaze, thank you. So my well is the Shelley Pate Number 1, but nowhere can I find reference to it in the production information, which is why I thought maybe it had been pooled. (And, it’s in the Glenrose D West field, according to the assignment doc from June of 2019). So, if the Well name is not mentioned, and there is no current polling agreement on file, then it’s likely there is no production on this well. Does that sound reasonable?
Shelley Pate #1 - API 42-289-30878 - RRC 05-03161. Current Operator is Basa Resources Inc. Basa took over operations in 1995 from Mustang Drilling. Well was completed in 1987. Last oil sale in 2018. Periodic reports of 1-2 bbl, and last in January 2022. Basa may be holding your royalties in suspense and you should contact Basa. Is title in your name or still the name of your predecessor? Your lease may have been with another company which was a non-operating working interest in the well. Your royalties would have been paid by the operator - first Mustang and later Basa. Permit for Shelley Pate is 40 acres, 12 acres out of 81.98 acres and 28 acres out of adjacent 81.98 acres. It may be there was an earlier lease (around 1984 to 1987) to Mustang and that lease expired either (1) for all acreage except for the 40 acres in the Shelley Pate well or (2) for depths below the producing formation of the Shelley Pate well. Then the lease you signed in 1991 was for the remaining acres or depths. Jay Management is no operating any wells in Abstract 500.
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According to the Texas RRC production reports, there has been no monthly production for that lease (03161) since January 2022, and that month only produced one barrel of oil. The last time the well produced more than 100 barrels in a month was March 2018.
Looks like the well, completed in 1987, is just about done.
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Thank you both. TennisDaze, you just summed up everything I have in 5 very large family files in just a few minutes. Impressive. I’ve visited with Basa a few times.
The big question is who owns the DEEP rights, which I have not leased. That’s why I started looking into this in the first place. Basa said they don’t have the deep rights, and they don’t know who does.
The lease documents are written so small, I will need a magnifying glass to read them.
You absolutely need to find out if you on the deep rights. Although the A-500 Survey is not in the primary Comstock leasing area, both Surprise Valley Resources (leasing for Comstock) and Vanna Production have leased some small tracts in that survey.
Your deep rights could certainly have some value in the future…
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Do you mean who owns the minerals? Or who owns the deep rights under the old lease? If under the lease, then you need to follow the chain of assignments in the deed records. It is no uncommon for a lessee to assign some depths and keep other depths under a lease. Eg, assign deep rights and keep only the shallow rights for the drilled well. If Basa only received the shallow rights, then it has no reason to keep track of deep rights. Or a lessee might assign 10% of the lease rights to some other company. Start with the lease and then look forward in deed records for assignments. You may end up with multiple lessees under a single lease.
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Thank you both. These minerals have been leased many times, starting in the 1930s by my great grandfather. Certainly I would say I own the deep minerals, but I need to figure out who, if anybody, still owns the rights to drill for the deep minerals.
I am not sure but I believe Jay Management is set up in units like the south side of the field. All the tanks on 7 were for water flooding the Glenrose D. I worked as a welder helper when i was a kid in building all that. If its still set up in the unit the one producing well can hold all the minerals. I have the same problem on the south end of the alabama ferry field. I have checked into trying to get release from these wells but it would cost thousands of dollars. They release all the wells you have interest in to you and you have to maintain them. Plugging, testing, and any problems that come up. As a rancher i surely don’t have the extra cash for any of that.
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When you get a release of your oil and gas lease it is not the same as acquiring the liability of the wells. Your mineral rights are “released”, so if you get that done you are free to lease them again! Get copies of the original lease and copies of the Water Flood Agreement.
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