Until 2010, the WTI and Brent were closely aligned, and WTI was generally a bit higher because it’s easier to refine. The increase in North American production combined with pipeline limitation pushed WTI downward. Most of the increase in demand for crude oil has been outside the U.S. market. Also, until recently, it was not legal to export crude oil so the infrastructure needed to do so wasn’t fully developed.
Louise, GLO has oil and gas lease form for mineral classified, but does not regulate the ROW/easement forms for pipelines, electric lines, etc. The surface owner negotiates the forms and rates. Easiest to use the rate and damage schedule of U.T. Lands System. A new schedule came out on September 1. If the pipeline, electric line, road, etc is being installed with respect to the wells drilled under the GLO lease (i.e. on-lease), then the revenues are divided 50% to surface owner and 50% to the State of Texas. If this is a pipeline not related to the wells (i.e. off-lease), then the surface owner gets 100%. You must be careful to adhere to the rules to divide the revenues with the State, as otherwise you could lose all royalties from the wells. If in doubt, check with Drew Reid at GLO.
Hi. Does anybody have any updates on W/2 Sec 23, Block C-7, Public School Lands Survey A-5072 in Reeves County? I had previously posted and assumed it would show up. Apparently it did not. We keep getting purchase offers for exorbitant amounts (which I would never sell). It is leased until Dec. of this year. Thanks in advance.
Thank you so much, Lawrence! I’m glad to hear about Forest. I really appreciate your help!
CourthouseDirect.com is a great source of information. Time-consuming but you can do the research yourself.
How would I search for pipeline rules and regulations from the state of Texas for state classified land? Anyone know the going rate for a pipeline? Don’t know much about the company yet as they are mailing a copy for me to sign. Also, anyone know of activity around Sec 8, Blk 55,t 4? Any and all information will be appreciated. Thanks in advance.
Louise
Lynn Hansen…re: Block 13 Section 227 http://navoilandminerals.com/Reference/Reeves%20County%20-%20Sarago… Section 227 is bordered on the north side by IH-10 and shows not to be leased or have any pending drilling activity at this time. near Verhalen
Thanks so much, Blake. Seemingly in Oklahoma, we only get huge offers a short time before our Division Orders come in. We would never sell (my dad was an attorney and selling minerals was a cardinal sin). It seems the buyout offers have been coming forever on this lease. I appreciate your help! Liz
Lynn…Oxy, COG, Primexx, and Noble Permian are drilling wells a few sections due north of your section 227. Forest Oil has leased part of the
McCoy ranch south of your land and are drilling prospects there.
near Verhalen
TennisDaze,
thank you for the information, it is helpful. Also, do you know if any activity around Sec 8, Blk 55, t 4 ? Just wondering why the interest in my area for pipeline. Don’t know if it is for water or oil and gas. Once again, thank you for your help…
Louise Welch, Wade Caldwell negotiated more money and language for the pipeline that was installed on our Block 58 sec 15 a year and a half ago . I believe it was more $$ than the U.T. lands rate schedule.
Hi everyone… I own the surface and 1/2 minerals in SW quarter of section 295 block 13. Does anyone own any of the rest of it or know if anything is planned for that section…I am getting several offers to buy it. It is not for sale but hoping someone knows something I don’t. I have 2 more years left on the current lease.
I actually received my first Royalty check. It was for June and July. There are two producing wells. One is doing well. The other is really producing. The numbers are hard to grasp. The unit price was around $43 per. They provided a sheet showing all the numbers and the taxes paid for the two wells. My “Interest” is very small. Less than 1 acre. I guess “Pooling” works very well. This whole “Oil” thing is brand new for me.
Lawrence no its not but thanks I did see this one however.
@William Rogers…, would love to hear your take on “pooling”…
JT, that looks like one of Clint Liles’ maps from the RRC Website.
I believe someone here provided a link to this website that I screen grabbed this image from. I can now not find the link. Would anyone know it? THNX! Block13.png
Hey, Wiley Fires!
Absolutely love your name. Would love to learn more about it’s origin.
Craig Ronhovde’s Reeves County Discussion Group has been a favorite on The Mineral Rights Forum for some time now. But sometimes, when people get off on one tangent or another, the lines of discussion get so convoluted and confusing that some peoples’ requests for information or input get lost.
I can’t fix that, but I noticed your inquiry for information about what might be happening around your acreage in the SW/4 of Section 295, Block 13.
Please see the link below.
If you will notice, the Clayton Williams Energy, Inc (CWEI) Trust State 242 No. 1H, in Section 242, just to the West of your Section 295, came in at 781 BO / 613 MCF per day.
Pretty impressive, but it also came in producing 1,944 Barrels of Water per Day…
And, after only 3 months of production, it has dropped from a high of 506 BO / 640 MCF per day to 242 BO / 294 MCF per day in a single month. Still impressive, but all with no monthly reporting of how much Water per day.
WILEY%20FIRES%2C%20REEVES%20CO%2C%20TX.pdf
Others on The Forum might disagree, but you may be in an area where the wells might potentially “Water Out” within a matter of years or even only a number of months.
If you have any offers that are fairly substantial, you may want to consider accepting one.
“Cash Cow Out”, so to speak…
Just an observation or two -
South of the Border, Down Mexico Way mex1 Devon who bought Mitchell Energy, is moving to develop similar stacked shale plays in basins in Mexico. The map is incomplete, but the same formations in the
southern and western Delaware basin continue across the Rio Grand
river and there is tremendous potential reserves in Mexico. Devon is betting the currency conversion rate between Mexico and the USA will make operations in Mexico cheaper by a factor of 20 and the profit margin increased by a factor of 10 while keeping the money in the western hemisphere, north American shield.
Development in Reeves county is paving the way for Devon and others to
develop the Mexico extension of the stacked shale play formations.
near Verhalen
South of the Border, Down Mexico Way
Number of drilling locations continues to grow for Apache’s Alpine High play - up to 1000 locations for dry gas, 3500 for wet gas and 500 for oil.