i have mineral intrest in southwest wise county, north of azle devon is holding one lease with a well that could not make expenses, was drilled in late fifties,they are just holding the lease for future production.
I have the same situation for almost 400 gross acres. Devon sold shallow rights to 2 wells to different operators & they hardly produce any gas at all. Devon just wants to retain the deeper rights. I don't think there's anything I can do about it. My wells were drilled before your's was.
I'm a couple miles SE of Lake Bridgeport - on HWY 920 at FM 3540. Would like to know how close Barnett Shale activity has gotten to me. Do you live in the area?
Ann Whitchurch said:
I have the same situation for almost 400 gross acres. Devon sold shallow rights to 2 wells to different operators & they hardly produce any gas at all. Devon just wants to retain the deeper rights. I don't think there's anything I can do about it. My wells were drilled before your's was.
I'm a couple miles SE of Lake Bridgeport - on HWY 920 at FM 3540. Would like to know how close Barnett Shale activity has gotten to me. Do you live in the area?
Ann tks. for the reply i understand the barnett shale has a underlying formation called the viola simpson, which is a rock formation that keeps the salt water out of the barnett and the viola simpson does not reach all the way west of wise co. only about half way devon drilled a barnett shale vertical well across the fence from royalty i have on the Culwell well but they are producing it from the boonville formation, so i assume they got too much salt water in the barnett. i do not live in wise county, west tx. here
by the way i had relatives who lived in your area Ozell Smith you might have known her
How can Devon Hold a lease for 50-60 years? I thought it was for about 3 yrs + 2 yrs!!?? As long as there is a trickle they can do this? All I know is, they lied to us from day 1. Said that there would only be about 40-60 owners in the coop we were forced into...then we were told there was about 400 or so, then it was over 600, then back down to 400 or so, now it is about 509. Also they keep changing Landmen on us. Has been about 5-6 different ones. No two tell the same story. So far, they make about 1/2 million or so a month on the deal..mineral rights owners, about 60.00 or less monthly.
Billy, mine are old Boonville also. I live in Oklahoma and don't know any of the Wise County parties.
I have notes in my file from 2004 when the 7-H Adams Southwest Lease was drilled 9,000'. It's B. Shale and was spudded in the Wise County T & O Survey with the Bottom Hole Location South across the county line in Garrett Survey. I wonder if that's close to your minerals. I think it started out about 1/2 million CF/day.
Yes, W. A. Maxwell, Devon (original Lessee was Mitchell Energy) has held my mineral for over 60 years on an old 1/8th royalty and they deduct expenses as well as Production Tax. It had the lease already in place when my Dad purchased it. As long as they are still producing anything, they can hold it. I could sue claiming a prudent operator wouldn't operate that small a well but I think it would be hard to prove and I know it would be expensive for me to try to pursue it. This shows the importance of Pugh Clauses before you sign a lease.
Kinda figures...what even bothers me now, when we signed last year, they swore 300.00 bonus was the going rate per acre, we now hear that the new ones being signed up, are around 1,000 to 2,500 per acre bonus. And they are not even near the "Core", as we are almost slap dab in the middle of the "Core". I do not know about others, I dislike liars more than anything in this world. Sometimes the truth may hurt, but I can handle that. I was always told, that if you lie, you'll cheat, and if you cheat, you'll steal. Seems the three go hand in hand. Your word and a hand shake are long lost...
It's hard work to properly manage your minerals. I rarely miss a day reading reports - this forum, National Assn. of Royalty Owners and 5 days a week The Daily Oklahoman drilling & completion reports for Oklahoma. Also Kansas Corp. Commission & TX RRC permits to drill. I read these online over coffee every AM. I network with other members of this forum and especially the National Assn. of Royalty Owners. NARO has a newsletter, message board, chapters for several states and conventions with seminars. I've had help from NARO members in other states where I have minerals.
Ann Whitchurch said:
It's hard work to properly manage your minerals. I rarely miss a day reading reports - this forum, National Assn. of Royalty Owners and 5 days a week The Daily Oklahoman drilling & completion reports for Oklahoma. Also Kansas Corp. Commission & TX RRC permits to drill. I read these online over coffee every AM. I network with other members of this forum and especially the National Assn. of Royalty Owners. NARO has a newsletter, message board, chapters for several states and conventions with seminars. I've had help from NARO members in other states where I have minerals and I try to help other members with Oklahoma questions.
Kinda got your hands full, Ann...but that is good. Keeps you informed...I just wish I had researched more before the plunge...but something is better than nothing, I guess.. Btw, my minerals are in Wise County, TX..just south of Paradise, TX. Seems at the moment, I will just get a check every 3 months. It was 1 yr 2 mos. before I even got the 1st and only check so far...W.A.M.
Ann Whitchurch said:
It's hard work to properly manage your minerals. I rarely miss a day reading reports - this forum, National Assn. of Royalty Owners and 5 days a week The Daily Oklahoman drilling & completion reports for Oklahoma. Also Kansas Corp. Commission & TX RRC permits to drill. I read these online over coffee every AM. I network with other members of this forum and especially the National Assn. of Royalty Owners. NARO has a newsletter, message board, chapters for several states and conventions with seminars. I've had help from NARO members in other states where I have minerals.
I've purchased most of my minerals and I also inherited a few tracts. It's lots of fun but I do have to work at it. Aren't your minerals about 10 miles or so from mine?
I think the biggest issue now is to keep the operators from deducting expenses from gas royalties. I've had HUGE deductions in TX, sometimes 4 to 5 times the severance tax. I wear both hats - have invested in working interests and expect to pay expenses. I do not believe mineral owners should pay expenses.
the minerals i own were inherited already leased and drilled before i got them, wish i could somehow void the devon but suppose that is not possible.
My Wise County minerals were already leased when Dad purchased them. I feel the same way you do, Billy. My husband has some minerals that have been held for 90 yrs or so - original operator was Magnolia which became Mobil - since sometime in the 1920s. There are now 5 operators on that little 120 acre farm, each of the 5 producing from a different zone. Magnolia or Mobil farmed out each of these zones to other operators and made money off the deal.
I have some in East TX that have been held since mid 1930s.
Stinks, doesn't it???
I assume you mean that they are "producing in paying quantities", and that there is no helpful language in the original lease. Billy, I am unclear as to whether all your mineral interests are tied up or whether some are open?
Expensive legal costs involved trying to prove Operator is not a "prudent operator" or that a well is not producing in "paying quantities".
Billy R. Simpson said:
Ann the lease devon is holding was signed by my Grandmother to Christie Mitchell and Mitchell in the fifties, that became George Mitchell then mitchell and mitchell, this co. was bought by Devon, they are holding one property with a well that is not economically feasible.
Billy, that's exactly the same as mine except it was already leased when Dad bought it.
Devon has farmed out the pittance of production from each of two separate wells to small operators, and Devon holds all other depths. Soooooo you and I are stuck with old 1/8th leases that allow production expenses to be deducted from our royalty.