Reeves County, TX - Oil & Gas Discussion archives

Careful there, Lawrence! Remember that you’re in your heart attack years.

Lawrence I have 160 acres and I have thought of finding a way to use the surface land. I control all 160 surface. A well is on site and some easements, but would like to get info John Sexton

I truly like your idea Lawrence Rayburn, of using the land to grow crops. One of the universities did a research on the grapes out there years ago. Said the sand was so good for grapes. that the soil was better than the soil of vineyards of France. I am interested in your idea too. Love it.

Louise

I remember years ago (‘60s) my dad participated in an experiment growing sugar beets. The sugar content was so high the sugar companies wouldn’t accept them. The soil in Reeves County would produce excellent crops, I would think (can you say cantaloups?!)

Louise…I’m easy…flattery will get you anything with me. Glad to help
you if I can with information about trends near your land and mineral holdings.

Cimarex moving on anything around 56-16?

Cindy,

I have heard from all over Texas that the cantaloupes are the best in the world. Well, maybe in the USA…

They really are the sweetest I have ever eaten. Wonder why the sugar companies wouldn’t use them? Strange.

Yep. The dreams of old men put them in an early grave. But, Oxy, Cimmarex, Founders, Noble Permian, and a host of others are moving all over this area now. Opportunities are everywhere and if I can help land owners/mineral owners get good deals…I want to do that. I’m also interested in talking surface land owners into farming human food crops
out here around the oil and gas activity to give them another good income stream. I design and will help build greenhouses with recirculating irrigation laden with nutrients and I have some contacts with restaurant chains along the Pacific, Gulf, and Atlantic coasts who will pay great money for vegetables grown to their specifications. They will even send their own refrigerated trucks to pick the produce up…so the ‘farmer’ doesn’t have to do anything but harvest the veggies, put them in bags, and make a phone call. This land will grow anything if you keep the water on it…and I’m all for working the land hand in glove with the oil and gas industry doing their thing.
Land owners out here in Reeves county should be thinking multiple uses for their property, providing multiple income streams.

Meant to say the oil and gas companies and their personnel need not
interfere with a farming operation on your surface lands.

I also recommend planting 4 or 6 tree fruit micro orchards…4 or 6 fruit trees of the same species planted close together to be pollinators…so you get 1 sometimes 2 fruit harvests per season. Pears, apricots,
peaches, cherries, plums, even apples can be grown outside here.
But, put a greenhouse over them and you can grow citrus…oranges, grapefruit, lemons, limes, etc.

Cindy Frakes…the sugar content is so high in Reeves county crops they can be used for lots of things. Watermelon wine. Sugar beet Cognac.
Blue Agave tequila. Of course now it is LEGAL to grow medical marijuana in Texas…but I always wanted to grow mushrooms in blacked out ‘greenhouses’ because a certain type of mushroom is chopped up and the ‘juice’ is injected into cancer patients to cause
tumors to shrink and go away. One ounce of that strain of mushroom
goes for $5000.

There are LOTS of legit crops that can be grown here and make the
land owner/farmer a good living. And, the oil and gas industry
equipment and personnel need not interfere with other farm related
income streams.

This forum is all about land owners surface and mineral rights as it relates to oil and gas exploration/production. But, soon a couple of new dimensions of rights will have to be added and you as land owners will need legal representation to manage. I’m talking about your
land owner rights to solar and wind power over your property.
I recommend you get legal representation before entering any agreement to harvest solar or wind energy on your property…and NEVER allow photovoltaic panels or windmills to be attached to your
home physically because it has major adverse legal ramifications for
your property ownership.

I’m all for multiple income streams from your property and recommend
custom farming of vegetables in enclosed greenhouses…but the wind and solar fields are fraught with legal snares…so I’m holding that at bay except for those who want to take a homestead totally off grid and are not interested in trying get paid for any excess power they produce. Stay independent of the ERCOT Texas electric power grid and enjoy
producing your own power without interruption.

Yes, Will. These outfits that want to install solar panels on your roof and
rig it up to backfeed electricity through a ‘net meter’ to make money
‘for you’ from ‘your’ solar panels…invariably put a lien on your home
for their panels until you get them paid off. So, if something happens
and you CAN’T pay for the panels…they take your house, legally…or your land if you agree to let them put up a solar farm on your land and sell power to the utility.

It’s NOT the Texas Electric Utility that is the problem…it’s the ‘contractors’ authorized by the TDLR (Texas Dept. of Licensing and
Regulation) that lets them make contracts with land owners and home owners for net metering of solar PV systems. Mostly it is confined to the
area around Austin, Dallas, Houston, San Antonio…that’s where they can prey upon the most people.

Will…so I’m saying if you want to have a solar farm or cut your electric bill with solar panels…BUY the solar panels outright…pay cash. Feed a
battery bank from the solar panels, store electricity, and have a safety
disconnect switch between the electrical grid power and your home. Also have a safety switch on your feed from your battery bank and inverter
to your home. You open the safety switch and lock it open to keep the
power from back feeding to the grid. You close the safety switch to your battery/inverter/solar panels array to power your home. Only one safety switch can be closed at a time to power your home and padlocks ensure
no tampering.
Thanks to TDLR regulations, I am no longer an electrical construction
supervisor…but I always adhered to the National Electrical Code.

Had a company from North Carolina contact me about putting Solar panels on my land. I turned them down as I felt like if I wanted the Solar Panels, I would buy them and put them on the land by myself. All kinds of companies are soliciting all the time. The panels have come down drastic and will continue to do so. Just be careful in what you do, so many regulations on everything now days with the government.

Louise

What is the status of the wells in the area of H&GN RR Block 4 Section 68 A-3843? I see they were permitted a couple of months ago. I am curious what the potential is for multiple wells being drilled at different levels is? I see they are running a horizontal well across the entire section but don’t know how common it is for them to do multiple depths and if they do is that done fairly quickly or over the course of years? I have received cash offers that are increasingly getting higher so I was curious what the timeline will be and the value of the NMA over time?

Lawrence,

Your post on Friday had some text that jumped out at me.

“…and NEVER allow photovoltaic panels or windmills to be attached to your home physically because it has major adverse legal ramifications for
your property ownership.”

Are you saying that one could lose their property by connecting a solar or wind panel system to this particular utility? Have you posted details on how this happens? Would like to understand more.

Will

Solar – Google has an interesting website for calculating the cost/benefit based on where you live.

https://www.google.com/get/sunroof#p=0

Many of these solar company proposals will include contract language that the surface use becomes dominant over the minerals. The surface owner does not have power to allow this. However, if you own both surface and minerals, then you need to consider the effect on your future royalty income. If you only own 10 acres, then access will not be an issue. What if you own 640 acres or more? The contract provisions need to be understood. How will you be paid? Only for electricity or also rent for the surface? Who will be responsible to pay for removal of old solar equipment? As with any real estate deal, there can be complexities and you need to be careful to understand the terms and conditions.

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Not sure how many saw this regarding apache:

http://www.nasdaq.com/press-release/apache-expands-options-to-trans…

TennisDaze,

Interesting comment regarding solar contract language. So, in my case I own 160 NMA but not the surface. Are you aware of any situation whereby the mineral owner could be impacted adversely by the actions associated with the surface owner?

WSW