Mitchell County, TX - Oil & Gas Discussion archives

We signed with Firewheel last March. I spoke with a landman about 6 weeks ago to see if their new well included our interests. He said they were in the process of getting ‘our’ part leased so they could do it next.

The wording on royalty versus mineral interest is a very tricky issue. You need to look at the reservations in the chain of title and the wording in the deeds carefully.

Thank you, Clay. Good to hear from you.

Martha, where is your interest located?

Yes Don, the pipeline is front page news this week, and the lead story on KVMC-KAUM earlier this week.

Thanks, Toni

Don’t know if I just missed it or if it has not been reported on this forum yet, but I just checked the Magellan Bridgetex website and learned that the Magellan/Occidental Pipeline has been approved. See news release at http://www.magellanlp.com/

Really glad to see this move forward. Seems to me this is a very good sign as to what is expected from the Cline Shale and other nearby plays.

A family member had a lot of confidence in our lawyer, and was too quick in signing a lease. After research, the lease’s terms are very favorable towards the lessee, NOT us, the lessor.

Do we have any recourse? Should we report this incident to the state Bar of Texas?

Toni: My interests are in Section 47, Block 26. Anyone know how close any ‘action’ is to that?

Thanks!

Thanks!! That does help!!!

Ferrell, I am a lawyer but do not attempt to handle my own leases without expert help. Over the last two years, I have learned a lot about oil and gas leases but I still see provisions which I need help on. Companies spend a lot of time developing leases where every provision maximizes the benefit to the lessee. Some are easy to spot, like royalty provisions which require you to pay a pro rata share of some expenses of production, transportation, and/or “preparation” which effectively transforms your royalty interest into a quasi working interest. Others are more difficult such as complex “shut in” provisions which can extend the life of a lease for many years and pay you little ($1.00/acre per year), and issues about the size of pooled units. I am working on a lease now which contains a clause that I have never seen. R. W. is correct, in that illegality is rarely a concern. Most of the real issues are about “the deal” and how you can get the most from your minerals.

Here is a link to a great little publication that is Texas specific. Answers a lot of the questions I see posted

http://www.ntxleaselitigation.com/docs2/Hints_on_Negotiating_an_Oil…

Ferrell, I don’t think you have any recourse. Lawyers give legal advice, I’d hope that they would point out which clauses were not in your favor but nothing I know of forces a lawyer to give business advice. Likely the lawyer just looked the lease over to make sure there was nothing illegal in it, which I think there almost never is because you can agree to most anything, might not be smart but not illegal to agree to. Not all lawyers have done well on their own personal oil and gas leases. I recommend people get help if they are leasing but I have said many times that they must study also so that they can judge if the help they are getting is adequate.

Martha: Your interest would be about a mile east of Gas and grub in Colorado city. It would be:

About 7 miles ssw to the Devon-Wulfgen well site.

About 7 miles se to the Firewheel-Webb well site.

About 9 miles ene to the Loredo-Treadaway well site.

Nothing closer than those three wells that I know of. Hope this helps.

I was looking at GIS Map and saw a nbr 32877 on one of my sections. Does anyone know what that means?

Vic Adoue. Corresponded with him back when leases were being made, he had some good surface provisions in his lease. There have been some temporary setbacks because the road going in to his place crosses the Colorado River and it is going to require extensive work to allow the rig and other heavy equipment to cross over and get in to the location area. That was about a month ago. I don’t know if the work has been completed yet.

New drilling permit application today for Devon:

Strain 1H Lease, 17 mi NW of Colorado City

Sec 17 Blk 26 H&TC Survey

9000 ft. horizontal well

(sorry if this posts twice, i typed it once, it disappeared)

Thanks Toni. Keep 'em coming.

Does anyone know a person named C Adoue? In September Devon was issued a permit to drill on his property close to Lake Colorado City, but no record of well completion that I can find.

Toni, thanks for Vic’s name. Could you ask him if he would mind talking with a virtual neighbor? I have mineral rights to the old MA Dry property just NE of his.

Brit Conner, Tyler

Brit, I will send you a friend request, you accept, then I can e-mail you his address and phone number. Toni

Just curious! How will company contact you when they are getting drilling permit? Is calling the company ie. Laredo, Firewheel, ok and who would you ask for?

Are there any reports on the Firewheel-Webb well or the Devon-Mayse well since fracking?