I have been working on some paper work getting all of our ducks in a row with our lease with Chesapeake in Converse County. I was told that time was of the essence for some of the final paper work because they were going to start drilling in our unit. Does anyone have any info or understanding of the timelines? How likely is it that they will actually hit with the well in this area? What is it that I read about privacy when they are drilling? Any info that you can pass along would be so very helpful....Thankyou!
Please provide information about where your lease is located. Township/Range/Sections or unit location. If we know that, then maybe we have some experience in your area. I have leased to Chesapeake and a BLM Deep Unit has been approved in our area. I'm sure they want the paperwork completed as soon as possible -- all of us have heard that from the representatives of the oil companies. I would make sure you have had the paipers reviewed legally and that you really want to sign them. I wouldn't waste time but I would suggest you take enough time to do it correctly and with legal review.
The oil companies must apply for permits to drill in Wyoming, BLM Unit Requests etc. This information is public and available through the Wyoming Oil & Gas Commission and the BLM. As far as results from drilling, that information is kept private for approximately 6 months after the well is completed.
John Linden
Alamo, CA
I agree with John. Do not rush to sign with Chesapeake or any other company. When I received my offer from CHK it was missing any indemnity clause, among other issues, that I was unwilling to sign without. See Buddy Cotten:
http://www.mineralrightsforum.com/profile/BuddyCotten?xg_source=activity
He was a great help to me.
My land is in Niobrara County, Wy.
Hope this helps
For the sake of your future, sign the lease on your terms, not theirs! If they want it, it seems to always be an emergency - usually with the hope that you won't take the time to negotiate the best and most complete terms in your favour.
Ray
Wy oil and Gas commission 307-234-7147 sent me to U of Wy www.wsgs.uwyo.edu or 307-766-2286 to talk to Matt learned alot talking to Matt who works at UWY for the state.
One thing that strikes me odd in reading the threads on this site. Why are the oil companies so secretive? My father and his sister own mineral rights to land in Converse County (Twp 31 North, Range 67 west of the 6 PM, Section 4: N 1/2). My grandfather owned the land and mineral rights originally, but sold the land and retained the mineral rights in and around 1940 - 1950. It has been since 1980 that any company offered a lease and then never drilled. Back then the Shale play was not even in the picture. We are curious if any activity is going on in the south eastern corner of Converse County? With activity fairly close (Douglas) right now, would it make sense to offer the land to an oil company and how would you go about doing so? Tom
Tom:
I just looked on the Wyoming Oil & Gas Commission web site. There are currently 294 drilling permits shown for Converse County. When I looked at this same information in June of 2011, there were only about 130 - 150 wells permitted, so there is a lot of activity in Converse County. I don't see any wells permitted in Township 31 R 67. The closest I saw was in T34 R67 which would be about 3-4 miles North. I don't know if the oil companies have been -- or plan to -- lease in your area. But you should look into the situation just to protect your own interests. Normally Chesapeake uses a contract company to do the leasing. In our case it was T S Dudley. Most of these companies are real good at contacting folks they want to lease from. However, I would contact the Converse County Clerks office and make sure the ownership name and address contact information is accurate for your mineral interests. The land men often use information on file with Converse County to determine who to contact about mineral leasing.
Your question was " Why are the oil companies secretive?" I'm sure there are many answers to that question. When the oil companies are leasing land, they want to pay the lowest amount possible. The less information the mineral owner has about prices they are paying to other mineral owners, the better it is for the oil company. Also, the potential value of the oil play in the immediate area is important to know. If they just paid $3000 an acre right next to you, that would be good to know --- especially if they are offering you a much lower price. In general, knowledge is power and the oil companies do a good job of controlling the information. This includes information about leasing and information about early production of oil wells. In the case of leases in you area, sometimes the government auctions of mineral leases will help you to understand what is being paid and where. It could be a few dollars per acre of thousands of dollars per acre. Both the BLM and State of Wyoming make auction winning bid information available to the public after the auctions are over. You can also see which companies are leasing and where. Use Google and start looking around. You will find that there is information if you look closely. Good Luck!
John
Thanks John! One quick question. If the oil company got a hold of him in 1980 thru the county clerk of court, do you feel that it is recorded correctly? I will definitely get in touch with them, however my aunt traveled out to Converse in 1980 when this happened and she found things were recorded correctly. This wouldn't change would it?
Thanks, Tom
John Linden said:
Tom:
I just looked on the Wyoming Oil & Gas Commission web site. There are currently 294 drilling permits shown for Converse County. When I looked at this same information in June of 2011, there were only about 130 - 150 wells permitted, so there is a lot of activity in Converse County. I don't see any wells permitted in Township 31 R 67. The closest I saw was in T34 R67 which would be about 3-4 miles North. I don't know if the oil companies have been -- or plan to -- lease in your area. But you should look into the situation just to protect your own interests. Normally Chesapeake uses a contract company to do the leasing. In our case it was T S Dudley. Most of these companies are real good at contacting folks they want to lease from. However, I would contact the Converse County Clerks office and make sure the ownership name and address contact information is accurate for your mineral interests. The land men often use information on file with Converse County to determine who to contact about mineral leasing.
Your question was " Why are the oil companies secretive?" I'm sure there are many answers to that question. When the oil companies are leasing land, they want to pay the lowest amount possible. The less information the mineral owner has about prices they are paying to other mineral owners, the better it is for the oil company. Also, the potential value of the oil play in the immediate area is important to know. If they just paid $3000 an acre right next to you, that would be good to know --- especially if they are offering you a much lower price. In general, knowledge is power and the oil companies do a good job of controlling the information. This includes information about leasing and information about early production of oil wells. In the case of leases in you area, sometimes the government auctions of mineral leases will help you to understand what is being paid and where. It could be a few dollars per acre of thousands of dollars per acre. Both the BLM and State of Wyoming make auction winning bid information available to the public after the auctions are over. You can also see which companies are leasing and where. Use Google and start looking around. You will find that there is information if you look closely. Good Luck!
John
Tom:
If nothing has changed on your end, you could assume the information at the clerks office is still correct. That said, there is a oil boom in Converse County. Land men have been all over those records for the last 3 years. The place has been flooded with activity. Likely things are still OK, but who knows for sure without verification. They are passing out money to mineral owners all over Converse County. Maybe not to mineral owners in your area today, but who knows 1-2 years from now. I would make sure they know how to reach you. John
Regarding the question of secretism with the oil companies. How do you know, as a mineral rights owner who has a signed lease, when they actually strike oil?
Jackie, If you live on the land where they are drilling, you will know by the activity. If you live elsewhere the first clue may be a division order in the mail. I think most operators ignore the mineral owner /lessor after they get what they want, an executed lease.
Thanks for the info/reply. We do not live on the land. What is a division order? I read something about a 6 month time period of privacy??? Anyone have any info regarding that?
r w kennedy said:
Jackie, If you live on the land where they are drilling, you will know by the activity. If you live elsewhere the first clue may be a division order in the mail. I think most operators ignore the mineral owner /lessor after they get what they want, an executed lease.
Jackie, at the top of the page if you mouse over mineral help and click on division order in the drop down, it will give a better description than I would likely provide. As for confidential status or tight hole, the operator can petition the state to not release information about the well, sampling/conditions encountered, production and so forth. The states seemingly grant this status for the asking. I think the reasoning behind confidential status is so the operator can lease more land around a successful well or try to sell a poor well/leased acreage around it, before the facts are made public.
Thanks John,
I have been in contact with a landman and he is doing a conveyance for my family. I will be talking to him today.
Sounds like the company he works for may have interest in leasing. I did follow the Federal Auction and land close to where my family has mineral rights was part of it. Not much was paid per acre, but I assume this was due to other areas seeing more activity with active drilling going on, but this is only an assumption.
When we do have a lease offered to us, would you have an attorney that you would recommend that is familiar with them we could approach to help us out?
Many thanks,
Tom