We were going through some old files and found a oil, gas, and mineral lease my husband signed in Oct 2002 for 120 acres in Lynn County for 3 years. We have never heard from the company and wonder if they actually drilled and if anything was produced. I will try to contact the company SHA-Jam Operating Corp in Midland. Anyone know if there has been any production in this area?
Is probably doubtful they ever drilled, but If you'll send me the exact description - including the name of the Survey, Block, and Section numbers, I can look it up on the Texas Railroad Commission website. Also, if it's 120 acres, does it say which quarter of the Section it's in? Northeast, Southwest, etc.
Thanks, Paige. The contract describes the property as " All of the North-120 acres of the Northwest-Quarter (N/120 NW /4)of Section 412, Block 1, D&E RR Co. Survey, Lynn County, Texas, containing 120.00 acres of land more or less."
Since this contract was for 3 years and was written in 2002, I wonder if that means it is expired and we can again lease the land.
There is a clause that says, " If, at the expiration of the primary term or at any time or times thereafter, there is any well on said land or lands with which said land or any portion thereof has been pooled, capable of producing oil or gas, and all such wells are shut-in, and thereafter this lease ma be continued in force as if no shut-in had occurred, Lessee conducted on said land covenants and agrees to use reasonable deligence to produce, utilize, or market the minerals capable of being produced from said wells, but in the exercie of such diligence, leasee shall not be obligated to install or furnish facilities other than well facilities and ordinary lease facilities of flow lines, separator, and lease tank, and shall not be required to settle labor troubles or to market gas upon terms unacceptable to leasee. If at any time or times after the expiration of the primary term, such as wells are shut-in for 90 consecutive days, and during such times there are no operations on said lands, then at or before expiration of said 90 day period, leasee shall pay or tender by check or draft of leasee, as royalty, a sum equal to one dollar for each acre of land then covered, thereby, leasee shall make like payments or tenders at or before the end of each anniversary of the expiration of said 90 days. If upon such anniversay this lease is being continued inforce solely by reason of the provisions of this paragraph each such payment or tender shall be made to the parties whom at the time of payment would be entitled to receive the royalties which would be paid under this lease."
Paige Jo, hnston said:
Is probably doubtful they ever drilled, but If you'll send me the exact description - including the name of the Survey, Block, and Section numbers, I can look it up on the Texas Railroad Commission website. Also, if it's 120 acres, does it say which quarter of the Section it's in? Northeast, Southwest, etc.
Nancy, could it be the D & SE RR Co. Survey? If so, your section is located a few miles northeast of New Home (which is northwest of Tahoka).
Looks as if a well was drilled in the northwest corner of that section in late 2002/early 2003 and was a dry hole, and then plugged (lease #305-30450). And looking at the area around it, there's a sprinkling of dry holes all around it, so nothing producing close-by. That being said, with the new drilling and fracing capabilities, they're often going into plugged wells and re-working them.
Below is the info on the dry hole in your section from the Texas Railroad Commission website - Public GIS Map Viewer - at http://www.rrc.state.tx.us/data/online/gis/index.php#. Click around on the instructions/legend, etc., and you can find a wealth of info from the Viewer.
Good luck!
Paige
OPERATOR/WELLBORE
API: 305-30450
| WELLBORE STATUS | DRY |
|---|---|
| LAST PERMIT ISSUED | 524961 |
| LAST PERMIT OPERATOR NUMBER | 767967 |
| LAST PERMIT OPERATOR | SHA-JAM OPERATING CORP. |
| LAST PERMIT LEASE NAME | HALEY-LAWSON UNIT |
| TOTAL DEPTH | |
| SURFACE LOCATION | Land |
| ABSTRACT | 623 |
| SURVEY | D. & S.E. RR CO / W B JOHNSON |
| BLOCK | 1 |
| SECTION | 412 |
| DISTANCE 1 | 1820 |
| DIRECTION 1 | N |
| DISTANCE 2 | 990 |
| DIRECTION 2 | W |
COMPLETION INFORMATION
No completion data found.PLUGGING INFORMATION
| DATE PLUGGED | 01/08/2003 |
|---|---|
| PLUG DEPTH | 6520 |
| PLUGGING OPERATOR | SHA-JAM OPERATING CORP. |
| PLUGGED LEASE | HALEY-LAWSON UNIT |
Thanks, Paige. You are really resourseful!! I guess I will have to show the contract to a lawyer to see if we are eligible to release the property. We were never given the "$1 per acre" for them to continue the contract after the primary period, so I am hoping we can release it.
Paige Johnston said:
Nancy, could it be the D & SE RR Co. Survey? If so, your section is located a few miles northeast of New Home (which is northwest of Tahoka).
Looks as if a well was drilled in the northwest corner of that section in late 2002/early 2003 and was a dry hole, and then plugged (lease #305-30450). And looking at the area around it, there's a sprinkling of dry holes all around it, so nothing producing close-by. That being said, with the new drilling and fracing capabilities, they're often going into plugged wells and re-working them.
Below is the info on the dry hole in your section from the Texas Railroad Commission website - Public GIS Map Viewer - at http://www.rrc.state.tx.us/data/online/gis/index.php#. Click around on the instructions/legend, etc., and you can find a wealth of info from the Viewer.
Good luck!
Paige
OPERATOR/WELLBORE
API: 305-30450
WELLBORE STATUS DRY LAST PERMIT ISSUED 524961 LAST PERMIT OPERATOR NUMBER 767967 LAST PERMIT OPERATOR SHA-JAM OPERATING CORP. LAST PERMIT LEASE NAME HALEY-LAWSON UNIT TOTAL DEPTH SURFACE LOCATION Land ABSTRACT 623 SURVEY D. & S.E. RR CO / W B JOHNSON BLOCK 1 SECTION 412 DISTANCE 1 1820 DIRECTION 1 N DISTANCE 2 990 DIRECTION 2 W
COMPLETION INFORMATION
No completion data found.PLUGGING INFORMATION
DATE PLUGGED 01/08/2003 PLUG DEPTH 6520 PLUGGING OPERATOR SHA-JAM OPERATING CORP. PLUGGED LEASE HALEY-LAWSON UNIT
I knew nothing about mineral leases a year ago - I've been on a crash course to learn all I could since I took over managing our interests for the family. It's complex, but fascinating! I'm certainly no expert, but glad to share what I have learned or experienced with others who in the same situation I was.
The company who leased your mineral rights should have sent you a release, even though the lease had expired. I've spent since last April trying to get a release from one of our Lessors! Apparently it's pretty common for them to just 'let it drop', but it helps if you're wanting to lease again to have all the i's dotted and t's crossed.
Thanbks, again. I too have just tried to start looking at these. We also have property in Terry county and have been contacted by landmen there wanting to get the mineral lease. So far we have not accepted any of their offers. We just found this lease while going through some old papers I tried to find the company so I could contact them, but so far have been unsuccessful. Next week I will have more time and will start hunting.