Centennial has permitted a horizontal well to be drilled west of Hwy 17 just behind
the former Clayton Williams/Desta rest camp/now Noble Permian rest camp
at Verhalen. Dunno if it will be a single, dual, or quad horizontal well yet.
I have a piece of property...N/2 of Section 1, Block 72, Tract 15.
When we purchased this Reeves County land, we were told in writing that we have the "classified mineral rights." I don't know what this means. On the warranty deed it states: "This conveyance is made subject to any effective oil and gas lease, easement or prior reservation of record affecting the herein conveyed lands." What does this mean? Do we have oil/gas rights? Thank you.
Looking for a partnership to sell water on FM 1216. Colgate, Rosetta Resources, PDC Permian, Carrizo Permian, Devon Energy, Centennial Resources are drilling within 5 miles of my location. Contact me at 432-260-8741, serious inquiries only!
Karen Cargill -
Please see the links below.
I pulled up Sec 1, Blk 72, PSL/E B Daniel Survey, A-5571, Reeves Co, TX and it appears to have been Patented in 1943.
I have a call into Walter Talley with the State's General Land Office to determine how it was / is Classified, but he may not get back to me until tomorrow or the next day. You can call Walter yourself if you would like to: 512-475-1859
GLO%20INFO%20SHEET%2C%20A-5571%20REEVES%20CO%2C%20TX.pdf
I also pulled up information on the Centennial Resources - Barbee 72-1 Well No. 1H that was drilled and completed in 2013. It's Unit is all of Sec 1.
42-389-33389%20CENTENNIAL%20-%20BARBEE%2072-1%20NO.%201H%20-%20PERMIT.pdf
Then I pulled up the 2017 Mineral Tax Rolls for the Barbee 72-1 No. 1H. The decimal interests reflected in them adds up to 100%, but the name Cargill does not appear.
Then I pulled up recent leases in Sec 1 on DrillingInfo. There records might not be complete, but no Cargills there, either.
DI%20LEASE%20DATA%20-%20SEC%201%2C%20BLK%2072%20PSL%2C%20A-5571%20REEVES%20CO%2C%20TX.pdf
I noticed that the State of Texas appears on the 2017 Mineral Tax Rolls as owning a 1/16th Royalty in the Barbee 72-1 No. 1H. Along with everything else that I see, it appears to me that your lands are not "Mineral Classified", where the State retained the Minerals when it Patented the lands and the surface owners act as Agent for the State, but that the State retained a 1/16th Non-Participating Royalty Interest (NPRI) when it Patented the land.
Walter can tell us more.
Either way, since you have not mentioned ever being approached about signing a lease or ratifying one, your minerals appear to have been reserved in prior title.
Hope this helps -
Ownership depends on the date of the original patent - I would surmise that your property was patented after August 21, 1931 when the State would have reserved 1/16th of the minerals. If so, you should have the right to lease (if there has been no other severance of the minerals to a third party since then). Original patents can be searched at the GLO website: http://www.glo.texas.gov/history/archives/land-grants/index.cfm
Per John McFarland's Article which I recommend everyone read:
"Some landowners were not happy with this result, so they got the Legislature to pass a new law, known as the Relinquishment Act of 1931, which undertook to vest title in the landowners as to 15/16ths of all minerals under their lands. The constitutionality of this new act was quickly challenged, and in 1932, in Empire Gas & Fuel Co. v. State, the Texas Supreme Court wasted no time in declaring the new act unconstitutional.
Finally, in 1931 the Legislature also passed a new sales act providing that, for sales thereafter of State lands, the State would retain only a 1/16th royalty.
So, for sales of mineral-classified public free school land in Texas after September 1, 1895, but before August 21, 1931, the State owns the minerals under those lands, but the surface owner has the right to lease those lands and receives one-half of the bonus, royalty and other consideration payable by the lessee. The lease must be on a form approved by the General Land Office of the State and must be filed with and approved by the General Land Office."
Atta' Girl, Virginia! Great answer.
My turn to ask a question!
Can anyone remember the discussion about leasing interests in a unit after the unit has been producing for a while? The conversation was regarding whether a previously unleased owner could, once leased, claim royalties back to the first date of production.
They can - operator may claim statute of limitations applies (tort 2 yrs, contract 4 yrs).
Would NOT recommend leasing in that situation without review as it's possible to claim 100% of share of production as unleased mineral owner. Operator will usually get to offset cost of well but if facts reveal intentional trespass, they do not get that benefit.
Of course, if they decide to lease (and it may turn out to be warranted to participate in all unit well production) they can made payment of all royalties to inception part of the negotiations. ... all to say ... it depends.
The people involved have been approached by the Operator to either lease or sell because they protested a Rule 37 Application. Their unleased 2 acre tract is too close to two proposed horizontal wellbores and they wanted to slow things down until they knew more.
I reviewed the entire situation with them and they want to lease. I just couldn't find the previous discussion about the options.
Appreciate the info!
I received a great Bonus offer for a 3 year lease. How important is it in choosing the company who will lease your land for oil royalties? I've had my oil and gas attorney revise the lease. But, what's the possible downside for picking the wrong company, or is there. Are some better than others when it comes to wells being drilled, etc.
ACTIVITY FOR/ NEAR SECTION 4, A-552
Hello, I am new to the forum. Does anyone have news of activity for this section?
I have a lease that will expire soon. I was told the company applied for a permit to start drilling. Where do I go to find if permit has been issued???
I am looking for someone that can give me an appraisal for minerals I own in Reeves County,TX.
I would appreciate any contact information.
Robert
Howard, Railroad Commission's website shows last December Diamondback E&P got a permit to drill from a well site at the very north end of A-552 but the horizontal leg of that well, including the first take point for production, is suppose to start further north in Ward County.
This link should take you to the plat of the 161 acre unit Diamondback formed for that well that doesn't appear to include any acreage in A-552. http://webapps.rrc.state.tx.us/dpimages/img/3700000-3799999//PR0003780098_0001.pdf
Below is RRC's map with A-552 outlined in red. Other activity around it includes a well Diamondback completed in 2014 and two more they have permits to drill in Section 6 less than a mile east of you.
Howard, the total acreage I mentioned on that proposed Diamondback unit should have been 658 acres,
Here is the link for RRC's website for other online information
http://www.rrc.state.tx.us/about-us/resource-center/research/online-research-queries/
Question, a company ask to do seismic on my land with other owners. We signed in 2017 about April or may. Signed and waited for check to arrive. Never did, so I called to ask about it. Man said it would be sent out about November. Waited some more, never heard or received check. I called again about a month ago and was told that the higher up company didn't buy the seismic products so they were not able to sell it and we would not be able to collect the money were promised. Is there a remedy for this. Never heard of this happening. Anyone have any suggestion? It would be appreciated. Thanks in advance. Louise
Louise, if by "remedy" you mean a way to force the company who acquired the permit to pay the agreed bonus, you'd need to ask an attorney, but I don't think typical seismic permits are enforceable contracts. It's similar to what can happen if you give someone a signed/notarized oil lease before you receive the bonus payment.
On future permits I'd insist on including specific time limits by which work has to be completed or the permit terminates, and if they won't agree to exchange payment for the signed permit at least require the payment has to be received before they can enter the property.