I have mineral interests in S17 T25S R36E currently leased to AMEREDEV OP. This company has goos wells immediately north and south, but no plans on the books that I have discovered for this section. AMEREDEV has offered a lease extension, but it is only 1/10 of other offer. If Ameredev “starts work” before the lease expires next month, they will of course continue the lease. In absence of Ameredev’s activity will they have to obtain a new pooling order? Will the “market’ value of a new lease be a part of such pooling order? Otherwise, how can an individual establish value other than by just waiting to see what offers surface?
Assuming there is no existing compulsory pooling order for Section 17, then yes any operator would either need a new lease or a compulsory pooling order to develop your unleased mineral interest. In a typical compulsory pooling order, the market value is only used to demonstrate good faith negotiations between the operator and the mineral owner. As you are probably aware, once the interest is force pooled, the market value is irrelevant as the percentage of proceeds and risk penalty are set by statute.
Where can one find on-line a copy of any existing pooling on s17 or any site for that matter. Thank you for your response. ADS
Below is the website to search. However, note that searching for pooling orders in New Mexico can be super complicated. You can’t search by lands so you have to use the well name, operator name, etc. However, if you were forced pooled, you would have received notice of the action at your last known address.
I visited the ocdimage website and as was suggested, I did not have enough info to really dig into my property; however, I did visit the info for the multi-section well due north and discovered that well is stated as producing over 2000 bbl/day which in establishing value for the properties immediately surrounding that well gives a point of the curve. I have book-marked the website for future use. Thank you for your assist.
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