Anyone else been contacted by Eiche-Mapes to modify their standing lease. The requested modification deals with pooling and the size of the pool whether the well is labeled an oil or gas well. Any input?
We did and we signed it. Not much to it in my opinion. Whatever it takes to get the operator to drill.
Hard to argue with getting the drilling done. However, I contacted a well known real estate/oil and gas expert from A&M and he already knew of this solicitation. He could find no valid reason why the oil company would want to change the lease. The pooling parameters are dictated by the railroad commission, and should remain in their court to direct that. One can only assume that the oil company has a motive that serves them. The verbiage in the lease modification letter, about producing both oil and gas through the same production string is somewhat disenguineous as it is done everyday.
Its seems like a belt and suspenders approach. Ive been in the business then years, and although this type modification is rare, I see no good reason not to sign it and move on. They probably have an attorney or someone at the rrc telling them they need the special language. Im sure they can do what they need to do without it.
Roy Botard said:
Hard to argue with getting the drilling done. However, I contacted a well known real estate/oil and gas expert from A&M and he already knew of this solicitation. He could find no valid reason why the oil company would want to change the lease. The pooling parameters are dictated by the railroad commission, and should remain in their court to direct that. One can only assume that the oil company has a motive that serves them. The verbiage in the lease modification letter, about producing both oil and gas through the same production string is somewhat disenguineous as it is done everyday.