Regina,
Why are you protesting?
Everyone else signed and being forced pooled is not the most fair process for mineral holders.
Hi, I am protesting because I refused to release signed documents without payment at the same time. I set up an escrow so the papers would go in and funds would be verified before papers were sent out. All landmen refused to handle the lease that way, so I didn’t sign. I am a real estate broker here in Arizona and a mineral lease is a real estate deal. And I use a third party to handle the transfer of docs for money.
Jason, interesting…so how about a “directional” well?
All the background work was done, they have been at this since 2009.
All I wanted was protection. The various companies that approached us did not have drilling equipment, never put a well in, were anchored in mail drop addresses and essentially trying to get leases to flip. I get that. But I wasn’t going to be one of those. Show me the money. And I set it up with no cost to them. All refused. So here I am. One of the things I get with forced pooling is that they bill me, charge a premium and then hold it until all costs are paid. If that is the case, they know I do not have $200,000 to put into the deal. But if I am going to be a stakeholder then I should be able to see the books and expenses. That is what I will demand. I want to negotiate with Noble and get past this, but if I cannot, then forced pool it is.
Jason, we have a directional, but it is producing, on average, about 300 barrels per month over the past two years.
Regina, on our well, they started drilling before they even knew who held the mineral rights. We were not titled because our grandparents did not leave wills etc. It has taken almost two years to get to the point where we will finally be getting a division order, but we were force pooled from the beginning, so work could go with or without us or our approval.
Regina, if I remember correctly you would receive 12.5% royalty from the very first barrel if force pooled. I am pretty sure I remember correctly. I have lost count of the landmen that have lied to me saying I would receive nothing until the well pays out. From my research it may be that way in Wyoming but not in Co, ND, Mt and so on. I suggest you read the forced pooling law applicable. You might search for “What is forced pooling” by Matthew Sura. Jenna H Keller also had a blog post which I can’t get to come up now, to which I replied with more information. 12,5% royalty from first barrel, 100% risk penalty and so on. I hope this helps.
Regina,
I understand how you feel, but the borker for the operator trying to lease your land just needs time to run title back from patent (at their own expense) and usually it goes pretty smoothly.
Forced pooling might be the best way for you then, at lease you will get close to what others in your family received but it might cost you something as well.
Directional wells are good and will hit a few more sections of formations by the perforations but only marginal increases are seen. Pad drilling keeps the costs down and from one sight you can move the rig a few feet and rill another direction.
Just received an “application” from Bill Barrett for 6N62W section 25. They are asking to reduce the spacing for their horizontal well from 640 to 320 (which cuts my 60 acres out of the well) claiming they found significant defect in the record chain of title for the E1/2 (where I’m located). Sounds like they want to drill and not pay 1/2 of the owners? Is this common? Where can I go for answers?
Jay I don’t think Bill Barret is trying to cheat you.
They are like many operators and have geology driven devlopments, but if a very signifcant defect (probate, former leassor etc…) gives them good reason to shelve that section of the minerals for now.
I have seen Quiet title actions clear up issues, and once resolved then they will want to lease or someone else.
Remember depending
Off a Blog from Jenna:
Colorado law entitles a non-consenting mineral owner to a royalty until the producer recovers 200% of their cost (only 100% of certain costs). After that, the force pooled owner becomes a working interest owner entitled to their proportionate share of the net profits.
Regina: to make some sense out of all this, what is the size of your ownership? Net acres?
If you are doing this for fun — okay. But, you are going to get force pooled by a company that has budgeted 2 billion a year for the next 5 years up in the Weld area.
Jay: The horizontal leg of that particular well does not go into the E/2. It would be BBC’s preference to tie up the entire 640 if they could. Since you are in the E/2, ask them what the title problem is and/or go to the hearing and ask at that time.
Hanna, A directional well in a traditional sense really just means they deviated the wellbore from a vertical position. A Horizontal well means after vertical depth reached they turned the drill bit and created a vertical wellbore. Directionals usually can slant hole the formation getting a few more holes in, but a Horizontal well can be right in the middle of the producing formation and perforate 50 times more holes.
Thank you Jason…so in the directional well, is there a pool of…whatever…where the “bottom hole” is?
I agree with Steve in a very respectful way to Regina.
Why not enjoy the bonus money and let them drill peacefully then get that mail box money every month.
A 200% penalty is very common, then your a working interest owner and that means you share the costs of the well with getting your revenue.
It just doesn’t seem worth the fight.
Regina, we were force pooled. Production began 2 years ago and we will receive all of the royalties due us plus interest.
Hanna replace my bottom sentence with “created a Lateral well bore” so FYI when a horizontal well is done it kind of looks like a L shape if you cut out a crater and looked at the face of it.
Yes there is a pool at the end of the deviation, and quite frankly sometimes the operators go in vertically then see something while logging and start chasing the pool.
Jay you private message me and i will give you more info. I looked up your section and will tell you more that i found
Jason: Is there a difference between a directional and a horizontal well?
I appreciate all that you are trying to do in educating me. I was told there may be a pre-trial conference between me and Noble. I have not heard from them today, so I imagine that is in the works. I made sure the Oil and Gas commission got my paperwork within the time allowed. I didn’t sign in 2010 and 2012. I am a very patient person, so I can wait. If forced pooling becomes my reality, then so be it. Doesn’t change a thing in my present circumstance.