This regards the Haynesville Reservoir A, Spider Field in DeSoto Parish where my sister and I own (RI) mineral rights.
In 2022, I discovered Comstock had a producing horizontal CU well that crosses our section, township and range we were not aware of. We inherited these interests and had completed transfer of ownership. Comstock claimed the reason we were not aware was that they didn’t have our contact info. The well was permitted October 2018 and started producing January 2019. We were paid all back royalties and currently receive monthly royalty payments.
Question: Would we have been entitled to be paid a lease bonus at any point? Just curious. I can provide more info if needed. Thanks in advance!
LA presents a few complexities as a mineral/prescription rights owner. Was their an existing and effective OGL prior to the Comstock activity? Did you enter into an OGL with Comstock? If not, you are considered a UMO, then a lease bonus is not available. If you are a UMO, you will have operating costs deducted from your production payments. If you leased to Comstock, then you may have leased with a no bonus royalty OGL.
Thank you, James. To your first question: yes there was an existing OGL prior to Comstock with various other producers over the years (currently Amplify). This involves currently producing vertical wells in the same Sec., Tship, and Range. To your second question: We didn’t officially enter into an OGL with Comstock. I “stumbled” onto the currently producing well after receiving a Field Order for Comstock to drill 5 additional alt unit wells. The currently producing well was permitted 10 years after we transferred ownership of our father’s interests following his passing. We were in the process of transferring ownership of our mother’s interests following her passing when I stumbled onto this in '22.
Pooling is a different action in LA. It does not force unleased mineral owners (UMO) into a psuedo OGL. It provides incentives for the producer to enter into an OGL with the UMO or the UMO can back-in for 100% APO.
I assume that Comstock is developing Haynesville/Bossier in DeSoto. I have to chuckle at the “no current contact info” excuse by companies today. The issue of a previously existing OGL would apply to shallower production, depth/pugh limitation, or pooling/CUW limitation. I am not sure what you mean by “officially”. Your OGL with Amplify may apply to the Comstock development. If you are unsure of your mineral/OGL status, I can put you in touch with my attorney in Shreveport or a landman with Comstock.
Thanks for your reply, James. You are correct on your assumption about Comstock developing in the Haynesville/Bossier (of which both shales impact my minerals). The lease Comstock has goes back to 1946 when my grandfather leased to an O&G individual (not a company). My father inherited the minerals, then my sister and I inherited from him. We currently receive royalties on 6 non-Haynesville wells from Amplify, and on 1 Haynesville horizontal CU well from Comstock who has a field order to drill 5 additional HOR CU wells that affect our property. So, having said all this, I’m assuming that the original 1946 lease means no other lease bonus(es) would be applicable. Does that sound correct? Thanks again!
From what you described, your minerals are HBP by the 1946 OGL. So you are correct with the no further OGL bonus payments; however, you do have the continued royalty income as a definite plus. Lease bonuses for this area have significantly decreased as well as royalty rates.