Hello, my family just got a bolt from the blue in the form of note from a Newfield rep outlining our mineral rights on my long dead gram pa's ranch. We were offered a lease with 1/6th share and other clauses to Newfields benefit. There is a one year old producing well on the property and they want to drill more. Has anyone realized a better deal with Newfield and are we owed a pre contract royalty payment? Thanks and happy spring! Rod
I have about the same story. Are your interests in section 28 by chance? Nickerson 6-28?
No, we are in sec 12. Didn't you have a negative experience with a Newfield rep?
Travis Hilkey said:
I have about the same story. Are your interests in section 28 by chance? Nickerson 6-28?
Rod ----
Good evening... I work with a man who owns existing production in Duchesne County... there has been renewed interest in the area. I couldn't tell by your description whether Newfield were offering to lease you at 1/6... is that what you were saying? Since there is a well producing the main question is this: who is the operator-- and is Newfield going for the deep rights? Is your acreage contiguous with other Newfield acreage, etc? Kindly advise... best regards ----
Hello Drake, Thank you for your reply. The well API no. is 43-013-51054 and is on a 40 acre lease. I don't know the status of surrounding land. I believe Newfield production company is the operator. The offer was for 1/6th royalty minus other discounts like using all product on site royalty free. The well is 10,000 feet and no mention was made of depth limits.
Best regards, Rod
Drake Bollinger said:
Rod ----
Good evening... I work with a man who owns existing production in Duchesne County... there has been renewed interest in the area. I couldn't tell by your description whether Newfield were offering to lease you at 1/6... is that what you were saying? Since there is a well producing the main question is this: who is the operator-- and is Newfield going for the deep rights? Is your acreage contiguous with other Newfield acreage, etc? Kindly advise... best regards ----
Rod --------
Thank you for the prompt reply. It sounds like you already signed a lease a few years back and Newfield came in and drilled a well and it is producing-- therefore your acreage is held by production (HBP). If they want to come in and drill a other well on the lease then they may do so according to whatever was agreed to and signed on-- you are not in a position to negotiate in these instances. So, I'm not sure why they are asking you if you agree on 1/6th... perhaps you have what is known as a "Pugh Clause" and part of your acreage was leased and the remainder was not? If that is the case then you have an "open interest" in which case you may negotiate. I'll do my best to help... what is the title of the document they sent to you for your review? Best regards ------
Rod Knight said:
Hello Drake, Thank you for your reply. The well API no. is 43-013-51054 and is on a 40 acre lease. I don't know the status of surrounding land. I believe Newfield production company is the operator. The offer was for 1/6th royalty minus other discounts like using all product on site royalty free. The well is 10,000 feet and no mention was made of depth limits.
Best regards, Rod
Drake Bollinger said:Rod ----
Good evening... I work with a man who owns existing production in Duchesne County... there has been renewed interest in the area. I couldn't tell by your description whether Newfield were offering to lease you at 1/6... is that what you were saying? Since there is a well producing the main question is this: who is the operator-- and is Newfield going for the deep rights? Is your acreage contiguous with other Newfield acreage, etc? Kindly advise... best regards ----
Drake, I never signed anything. The title is "oil and gas lease" on a producers 88-paid up form. Newfield did not have clear title as our family didn't know we owned these mineral rights until a month ago.
Drake Bollinger said:
Rod --------
Thank you for the prompt reply. It sounds like you already signed a lease a few years back and Newfield came in and drilled a well and it is producing-- therefore your acreage is held by production (HBP). If they want to come in and drill a other well on the lease then they may do so according to whatever was agreed to and signed on-- you are not in a position to negotiate in these instances. So, I'm not sure why they are asking you if you agree on 1/6th... perhaps you have what is known as a "Pugh Clause" and part of your acreage was leased and the remainder was not? If that is the case then you have an "open interest" in which case you may negotiate. I'll do my best to help... what is the title of the document they sent to you for your review? Best regards ------
Rod Knight said:Hello Drake, Thank you for your reply. The well API no. is 43-013-51054 and is on a 40 acre lease. I don't know the status of surrounding land. I believe Newfield production company is the operator. The offer was for 1/6th royalty minus other discounts like using all product on site royalty free. The well is 10,000 feet and no mention was made of depth limits.
Best regards, Rod
Drake Bollinger said:Rod ----
Good evening... I work with a man who owns existing production in Duchesne County... there has been renewed interest in the area. I couldn't tell by your description whether Newfield were offering to lease you at 1/6... is that what you were saying? Since there is a well producing the main question is this: who is the operator-- and is Newfield going for the deep rights? Is your acreage contiguous with other Newfield acreage, etc? Kindly advise... best regards ----
Rod -----
I just sent you a request to your personal account on this forum... kindly accept that so I can send you something... regards -----