why are we not pushing for more?

I'm hopeful that I will be able to sign a new lease as mine is set to expire in January of 2015. They have not touched my property located in Tyler county since they signed.

The last time I was ignorant to all of this. I still have barely scratched the surface but at least I can spell Marcellus and have heard about the Utica this time. I see the bonuses being paid and royalty amounts being paid here fluctuated a lot. I see people talking about how little some of them are making and they are in good areas. I suspect the companies are making quite a bit more then us. I understand they do the drilling and have the investment in exploration but we own the land. I wish I could calculate the appx. Amount they will profit on the well and try to figure out what the land owner share should be. I know we can't put a exact number but we should be able to figure out a appx. Percent of royalties which reflects that appx. Amount we should make.

Any ideas on the appx. Profit these companies will make in good and or bad areas. Any thought would be greatly appreciated.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 25, 2014 at 4:20am

Brian,

     I did a search using your name and found a lease. It's one of Chesapeake's.  

I can tell because every lease CHK has they have dumped so much data into the electronic records that it's difficult to find the lease for the person searched under.

Here is a copy of what I found. There was also a B J Werner which I asume is you as well.

All you have to do is take a look at the lease then figure out who is collecting the money you are supposed to be getting in royalties. I can assure you it won't be much due to the producer involved.

201000001132 4/12/2010 03:13:00PM 3/30/2010
Type Volume Page # of Pages
(ASSIGN LEAS) 000059 1259 65
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 25, 2014 at 10:25am

Brian,

     I found a Brian & A Werner Ivory Road.  Good & Bad news:

Morsheiser 26-15-6 Well 5H ends in the middle of your parcel. Production started on 3/20/2014 so you are one month or so behind on recieving Royalty Payments. There was production of oil and gas, NGLs are not listed by ODNR.

To collect your Div Order & money contact Enervest Energy.

I don't want to put your dealings in this note, but if you email me, I have an email ready for you in my Draft Section, with all the details. If you don't want to email me, contact Enervest Energy, they should be looking for you. Range Resources gave a bogus address on the document that transfered your lease to Enervest.      Ron Hale   mrrxtech_yah@yahoo.com   Call me at 330-271-9156 if you have questions. Lisbon area.

Permalink Reply by cj wyalusing on August 25, 2014 at 3:42pm

Ron I have been a member of this blog for a while I was wondering if I can

Contact  you  cj wyalusing thanks   

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 26, 2014 at 2:15pm

CJ

     I just noticed your note. Sure, send me an email, I'll friend you as well. Woops, I can't find you to friend.

mrrxtech_yah@yahoo.com

Permalink Reply by Brian Werner on August 26, 2014 at 5:00am

Ron:

Thanks for the help. I contacted CHK and they seem to have all my information correct. I'm not sure where this comes from but they told me that they have a 4 to 6 month grace period to file the Division order and start paying royalties. They told me the Division Order has not been filed yet and that I should begin receiving royalties in September which will be the full 6 months. I don't see a 6 month grace period in my lease. It just says royalties are due by the 30th of the month following the month of sale.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 26, 2014 at 2:10pm

Brian,

     If you want your business on this public site, let me know and I'll tell you what has taken place.

Otherwise if you send me your email address, I have a response waiting in the Draft section of my email account.

I bet you don't see a royalty until you contact Enervest.

Permalink Reply by jason irvine on August 14, 2014 at 6:05pm
I wish I had any answers for you
Permalink Reply by cj wyalusing on August 14, 2014 at 1:39pm

Does the anual report show each individual well because if it does  a great place to start 

1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on August 15, 2014 at 1:22am

There's a solution and it's called a CLASS ACTION SUIT. We all know who the worst offender in the Utica play is and individually we stand little chance of defeating this ruthless giant. The attorney generals office will do very little if anything. I have spoken personally with the former general counsel of a large oil company and he assured me that they  an be brought to their knees but it will take 100 plaintiffs to do it. Here's what I'm doing. I'm selling some of my mineral rights to a PRIVATE EQUITY FIRM and NOT to the company I have my lease with. This company has the financial wherewithal to put pressure on the developer to unitize and drill. And furthermore they will audit each and every statement. Rest assured we will not get beat out of a dime. I couldn't have a better partner plus because of unique circumstances I will be paying ZERO capital gain tax on this sale.

Permalink Reply by Brian Werner on August 15, 2014 at 1:54am

I have an idea that will work much much faster, but it will take a large number of commited  landowners willing to give some time and effort. My idea is to form a landowners union. Then  go on strike: picket, sit in and stop the movement of drilling rigs and equipment either on to or off of every well site in the county until the books are openned up and all leases are honored. I already have an acronym: CLOUT - Carroll Land Owners United for Truth.

For those with SURE leases, I've heard that there may be a landowners group forming to make a legal challenge, but it doesn't sound like that will help the rest of us.

Permalink Reply by jason irvine on August 15, 2014 at 2:08am
Both your ideas are great. The hard part is putting it together. It shouldn't be to hard in the future as more people get screwed every day. I don't understand how they get away with notpaying the nNGL aspect and or post costs. They better tread lightly in wv. Remember hill top mining issue. When the locals are not on board they can make it economically challenging.....they vandalize equipment to the point that you loss money. I'm not saying that is OK but it happened and will happen again if they screw the locals. The courts will feel like a Swedish massage compared to what they can do
Permalink Reply by LERRET on August 24, 2014 at 7:18am

I understand why people think that every well makes a company oodles and oodles of money. In fact, oil companies go bankrupt every month.  Look at all the old names from the past that have disappeared as separate companies. They are gone or just some marketing name held by another company.

Gulf, Texaco, Mobil, Magnolia, Cities, Champion, Phillips 66, etc.

The company pays for G & G - Geological and Geophysical. Sometimes they spend that money and decide to go somewhere else.  Then they have to acquire leases, pay people to acquire those leases, then decide to go forward or not as they accumulate even more geological and geophysical data.

Then they drill. Often they don't see a dime for four or five years after they started spending the money. Once they drill, they have to built the pipelines, the tanks, etc. Pay to haul off the water and reinject into a disposal well, etc. etc.  For each 5 barrel they handle, they have to give 1 barrel to the landowners and others with a royalty interest. Then out of that they have to pay employees, taxes, etc. They have to buy a huge insurance policy just to cover blowouts, damage, storms, etc. 

Col. Drake offered a better deal back in 1859. He offered the owner $21 per barrel of oil...50% of the market price.  But after only a few months, the price of oil had plunged to $5 a barrel and he still owed the owner $21...he went broke and the citizens of Titusville erected his monument after he died. He didn't have a dime.

Do not assume that mineral rights are bottomless cash cows.  Every well and area is different. Every formation has "sweet spots" and spots that are uneconomic.  It is the geology of the specific location that counts. And wells within 1 mile of each other can be very very different. 

I was recently asked to appraise a property where the owner decided he would pay his share of the wells and be a partner, not a feckless passive owner of royalty.  Although producing for almost 5 years he had yet to recoup his investment in the wells and some wells he will never get his money back. Only the best one or two wells appear to be likely to hold up long enough to get his money back.

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