I have couple of questions on land and mineral rights. I have a letter from bearcat land for contential resources sec 30 2s4w stephens city. Offering 800 per acre with 3/16 royalty but it also says should I participate my share of well costs must be paid per pooling order. Does this $$ come from me upfront or out of their 81.25% net revenue interest.
Also in searching deeds I have found family land transferred back & forth between original family members (all deceased now) so how would I find out who actually owns the property. I have mineral interests but unsure who actually owns the land.
Thanks so much for any help.
Pamela,
Participation costs are up front. There are some exceptions with outside deals, but usually carry a 200-300% penalty. I also received a few of these "proposal" letters this week. If their intention is what it appears to me, I'm not a fan of it. It appears to me (and I've seen it before from others) to look as the mineral owners have to make a decision at this time. Continental has not even filed an application with the OCC for your area and the ones I have received yet. Also I think the price is a bit low.
Participation carries great risks and could cost you more than the $14K-16K per acre listed upfront cost in the AFE. While dry holes are not very common with this type of exploration, the performance of the wells vary greatly. Participation is not usually a good idea for the average mineral owner.
My 2013 plat book list 4 major surface owners in the section. Chapman, Green, Brown, and Sutherland. I'm might be able to narrow it down, but would need the complete description of your property.
Does this mean I have to pay them upfront a participation fee? Can I opt out of participation fees?
nE/4 sec. 30 2s 4w. Bottom hole location se/4 the Raines 1-30h proposal. Where can I get an AFE? Thanks
Does this mean I have to pay them upfront a participation fee? Yes, with some exceptions.
Can I opt out of participation fees? Yes. With the common lease, you are not participating.
There are multiple owners of the surface in the NE/4. But I think you are quoting the legal from your proposal letter instead on "your" legal description.
The AFE is established/submitted during the pooling process which has not occurred yet.
http://imaging.occeweb.com/AP/CaseFiles/OCC4378930.PDF Here is a sample of one for a nearby well. But is is a multisection well. A single section well in the same area should be about 2/3rds of the total.
I HAVE A GENERAL QUESTION...US 4 SIBLINGS HAVE INHERITED MOL FOR SOME 47 TRACTS.MANY HAVE GONE TO POOL CAUSE WE REALLY ARE FEELING OUR WAY BLINDLY... WHEN THIS HAPPENS, I UNDERSTAND YOU STILL GET A FAIR PRICE FOR A LEASE. MY QUESTION IS HOW DO YOU FIND THE STATUS ON YOUR TRACTS AND COLLECT POOLED WELLS? THANKS, TERI
I just found out my stepmother will get 1/2 of my fathers mineral rights and we have to share equally the other half. Is this negotiable?