Jackie: When somebody wants something, they have a reason and they may or may not reveal that reason to you. The question is always why??? Until the why and its effect on you is clear to you, I would not sign any document. Too many devious people in this world.
My Grandfather homesteaded in Converse County in 1920. When he sold, he retained 1/2 of the mineral rights. You can look closely at the Converse County records and see what the situation was before and after the sale. Somebody owned the mineral rights both before and after and that was recorded by the Converse County Clerk.
Thank you all for your feedback. I've spoken to the Bureau of Land Management and gave them the patient numbers and they stated that the minerals on one is retained by the Federal gov't. The other patient (that is currently showing drilling being done in area close or on lot, the Federal Gov't only retailed the Coal. So this morning I contacted an attorney in the area to review the documents. It will not benefit me I'm sure since the land didn't below to me but at least I won't wonder if I did the right thing. Thank you again for your kindness and willingness to help me.
You mentioned in a earlier post that oil / gas wells are being drilled on Federal minerals in your area. In our area, a well drilled in 2012 NW of our minerals. If you look at the permit map, the well bore path from end to end is clearly on Federal minerals. However, on the East edge, our private minerals have a small participation in this well. In many situations in Converse County, government minerals and fee ( private ownership ) minerals are right next to each other. In our case, the West half of the Section is Federal and the East half private. Participation in these horizontal wells is being determined on 10 acre parcels along the edges. In our case, a well that looks like it is drilled on Federal minerals is paying royalty to private mineral owners because our private minerals are close enough to the bore path to participate ( 745 ft from the path as I recall ).
My point is, look at every one of those parcels very closely. Federal minerals and private minerals are mixed together all over that area. If you have any mineral ownership remaining, just because they aren't drilling close to your minerals doesn't mean you won't participate.
Can anyone share what current leases in Converse Co have gone for? May have minerals open later this summer in 37-70 and would like to have some solid info before negotiating.
My brother and son have a total of a 6% overriding interest in northwest Converse County. One or both of them would like to find out what they could sell it for. EnergyNet was recommended here, but with no experience we hesitate to sign on. I guess they would like to get a fair idea of its value first. How does someone do that
Sorry, my knuckle touched the wrong button as I was writing my comment. Here it is again...
My brother and son have a total of a 6% overriding interest in northwest Converse County. One or both of them would like to find out what they could sell it for. EnergyNet was recommended here, but with no experience we hesitate to sign on. I guess they would like to get a fair idea of its value first. How does someone do that? The lease is in sections 34 and 35 of t39 r76. There is activity and production. However, I got the impression that the energy companies working that area would try to offer minimum prices. How would you guys try to get the best price?
Jeff- I have sold minerals on multiple occasions to Boulder Petroleum out of Texas. They gave me a fair and honest price and the process was pretty simple. Contact: [email protected]
I have a question that I hope someone with more experience than me can answer. I have a small oil and mineral interest of about 9 acres in a 320 acre parcel in Converse County Wyoming. I have never leased it.
A little over a month ago I received a packet from a landman acting for Chesapeake offering to lease my interest for five years with a $250 per acre bonus and 18.75% royalty if any drilling is done and successful.
This paperwork arrived just before I left for a long vacation with my family so I decided to leave it to look at when I got back. I got back and the next day the landman called me and I told them I really hadn’t decided what to do yet. They immediately said that they had good news and that Chesapeake was going to double their bonus offer to $500 per acre but needed to get this taken care of in the next few days. I told them to send me the papers to look at.
The day after that a notice arrived from Chesapeake indicating that they were applying to drill a horizontal well with the Wyoming Oil and Gas commission. The entry point for the well is on the parcel I have the interest in.
So, my questions are; I know there is a procedure for them to get permission to drill even if they haven’t obtained leases from all the interest holders, but if I don’t sign this lease how would they determine what I should receive either for royalty or for the basic lease?
Is there any benefit to not signing the lease and receiving instead whatever the alternate compensation is?
Does the $500 per acre bonus and 18.75% seem reasonable compared to what the market is currently paying, since they are obviously intending to drill in the immediate future?
Mr. Larson, while I don't have exhaustive knowledge of Wyoming force pooling, I know you don't want to be force pooled there. Wyoming treats mineral owners about the same as they do Oil Companies who presumably have the money to participate in a well but do not want to take on the risk so the penalties are Harsh.
Knowing what I do about Chesapeake, in my opinion you need an exhibit or addendum drawn up by your lawyer which states in no uncertain terms that your interest will bear no expenses or charges other than taxes or you could receive Negative statements rather than royalty checks for the production of your minerals.
Mr. Larson, I have several mineral tracts around Converse County and have been actively leasing/renewing them. What Township & Range are you in? $500/.1875 seems light for most spots.
Kennedy is right about the protective clauses, if they let you include. I wouldn't necessarily pay a lawyer for them, especially if their fee eats up a good chunk of your bonus.
I would contact three companies in the area, including Chesapeake and offer to lease your interest in this wellbore for $5,000/ac at 25% royalty. You’ll get it.
This raises a short question for me. Our rights are south of most of the activity. Have you heard of activity in the area south of Douglas z… around twn 31 n range 70 w … thanks
There’s not a secret. Most of the time you won’t get 1/4 these days, that is because speculators are putting blocks together to sell to operators. This is a valuable service so they get some royalty. With Larson though, way different, he’s in the driver’s seat and should get paid well for his interest.
BTW Larson, you also should have the option to participate. You would pay your share of costs and get a higher payout than if you leased. If you want me to explain it in detail, email me.
Bart… thanks 320 acres. Had not seen much activity this far south for several years. Would be interested in leasing rights appropriately? Based on pending activity, would you have any suggestions for lease rates and percentages? Given movement in future, is better strategy to wait for next round of activity? Or is 320 acre enough to interest someone that is planning expansion or trying to lock up an area now?
Thanks for the update! Is the best place to look for activity the Wyoming oil and gas site…? or somewhere else? Is there a good source for looking at all recent leases within the area? Are there “reputable” companies working at leasing within the area currently? Thanks
Hi Bart, was your comment regarding the $5,000/acre and 25% directed toward me or someone else? I would like to understand the option of participating without leasing if you don't mind. Should I send you a friend request or is there another way to do that? Thanks again
Jim, yes it was to you. You can write Chesapeake and ask to participate in the well. You’ll get an estimated cost from them. You’ll have a working interest and be responsible for paying your way on your percentage (9 acres/the total acreage in the spacing unit). So you get paid on that percentage of the revenue too.
If you lease, you only get paid on the percentage of the revenue mentioned above X the lease royalty rate (20% of the working interest percentage if 20% is your royalty under the lease, for example). This is for an investor with some cash sitting around.
If that doesn’t apply, I’d find my highest bidder and get it leased. If Chesapeake knows you’re leasing to a competitor, they’ll pay you properly.
