Does anyone have experience with Horizontal wells being drilled through there mineral rights acreage? A division order I just received at first glance offers very small interest royalty, but the horizontal drilling appears to travel almost all the way through J Collom A-167 survey under which we own mineral rights to one or more acreages.
Our rights extend from about the middle to the south edge of Bryant Holmes A-447 survey. Our family has owned no surface land on that survey for over 60 years now..but of course will never sell our mineral rights.
I have done a little reading about several law suits being worked as I speak relating to exactly this dilemma...too little royalty when in fact the horizontal bore travels through and sucks our minerals out to a greater extent than a single drill point. In fact they are Fracking the bore area which also increases production.
The production company claims pooling to justify such a small royalty...I believe it's just the newest way the producers have figured out how to rip small royalty owners off.
Does anyone know what I should do...this could be a major new tactic here in the Cass county /Tex-Arkansas area or am I far behind times...and this has been done for years. HELP!!
You are far behind the times. It would take a lot of effort for you to catch up. Your belief that its just the newest way to rip small royalty owners off is not placed well. Please explain in detail the thought process where you reached that conclusion.
Also, cross posting the same message across multiple forms is against the terms of service.
Best
Buddy Cotten
Thanks buddy for your insight, who do you manage minerals for?
Good Morning, Lee.
I have hundreds of clients, but my two largest are the Stark Foundation, a multi billion dollar charitable foundation and 3 of the heirs of the Moody fortune (that is the family that owned Galveston Island).
Best
Buddy Cotten
Hello Buddy..sounds like you know the Oil business for sure. I don't have a clue other than what my mother told me about her father and the oil business way back 1930's in the Tex-Arkansas area. Things have changed a bit since then I'm sure. The one thing that hasn't changed is human instinct.
Regards,
Lee
I don’t have a response to Lee but do have a question for Buddy Cotten.i bought my brothers portion of mineral rights last year. We have the same scenario as Lee. My Mother and her three brothers sold 10 acres in Colorado County, Texas, in 1976., but retained their mineral rights. Now we have been paid a small royalty check in 2013, with the knowledge they would eventually drill horizontally into neighboring acreage hoping to extract oil, ect. My brother meantime sold me his portion of his mineral rights. We went to the bank with our papers from oil company and had them notarized and dated ect. My question is: Is this good enough now that we have been told a well is up on the properties and drilling will begin in two weeks or so. Within the next two to four weeks we will be receiving notice of amount to be paid to each heir. My mother had eight children . So I possess two of the 1/8 shares from my mom. Do I need more papers signed by my brother. And who needs to know of transfer of mineral rights from my brother?
They should start pumping in September.
Hello April,
Try to find a lawyer that is familiar with mineral rights transfer in or near Colorado County, TX. I did just that when I purchased my brothers mineral rights in Cass County. The fellow I found was very familiar with Cass County and the surrounding Counties. He filed the proper papers in the county court houses in all surrounding Counties and in that way when a producer wants to proceed to draw Oil or Gas or both from land you own mineral rights they will send you a lease & or division order.
I did a similar transaction as you mention at very reasonable cost. Mr. Cotton may know a way for you to proceed on your own. The court house route will insure you receive all royalties. We get offers in the mail weekly, wanting to purchase our (wife & I) mineral rights...don't sell them!! You never know when someone will want to produce Oil & or Gas from your mineral rights holdings.
Lee