Replies to This Discussion

Permalink Reply by Travis Keefer on June 15, 2015 at 7:25am

NC man, the carrizo 1h goes across k&r property they also have producing clinton wells still active from enervest and rhdk so my guess is they are in no hurry to drill that land since its locked up on old lease. The majority of property in the area has a conventional well already on it which ties it up and gives them time to change the old pooling language in the old leases. imho

Permalink Reply by nc man on June 15, 2015 at 10:15am

Thanks Travis!

Where does that leave me? Do you think by the time my lease expires in 10/16, there will be drilling by AEU or what else can I do now, if anything? Do you think my lease and mineral rights are worth nothing now and never will be?

Could I sell my minerals rights to someone and it be legal to do so, since this is the situation in which my rights are in, at this time? Would I have to reveal what you just told me , to any potential buyer of my mineral rights?

Didn't Shell know this when they bought my lease in 2011?

Sounds like you are saying---forget any royalties in the future, right? :(

nc man

Permalink Reply by Travis Keefer on June 16, 2015 at 6:54am

I think you misunderstood, you are in a very good posistion, In the wells that just went online in Londonberry Twp. AEU was making about 1 million a month just in oil at 60 bucks a barrel. The area is excellent its just they are going to drill expiring lease areas first. you are surrounded by HBP ground so if they have to re-lease your acreage but not the 1000 acres around you it makes financial sense to let you expire and repay your bonus. instead of other areas that all the ground will expire soon the need to drill it to hold it. also why drill in an oil heavy area when oil is down almost 100% from last year....Last year these wells would have made 2 million a month do you see my point? We are in the same situation in freeport twp. most land around us is HBP so i dont care if they drill because if the lease expires we will most likely get paid the bonus again.....free money is the best money imo. They just did a huge seismic survey of our entire area and may not have all the info back yet, just be patient and wait it out or if you need the money sell your rights im sure you will have no trouble whatsoever getting a buyer for this area. all imho

Permalink Reply by nc man on June 16, 2015 at 11:23am

Wow, that sounds a lot better than how I first interpreted your last reply! Thanks for straightening me out! I interpret what you are saying,more or less, they are just saving the best for last!

There is hope! Would really appreciate , if you hear, in the future, anything about the seismic survey to let me know or anything else in our favor as far as drilling. Do you have a guess when the area will be drilled on? I live out of state.

No, I am not in dire need of $ but was just worried I would just be holding an expired lease and have nothing to show for it! Yes, another bonus would be nice. But have heard

from others on this site, the new lease will not be as sweet as the first lease from Shell.

Just a couple of more questions, please.

1) is your land/mineral rights near the area my mineral rights are located in the K&R Conservation? I am not familiar with Freeport township. Did you sign with Shell/AEU? When, if so? I signed in 2011. Expires in Oct. 2016.

2)why do you think, if you have a guess, AEU rep, when I contacted him,  a few months back, to ask why no drilling, would tell me he didn't think that AEU would re-lease with me? He said there is a Dormant Mineral Act issue going on with AEU and the property owner, K&R Conservation.

What's your take on my statements?

Thanks for taking your time for me.

nc man

Permalink Reply by Travis Keefer on June 18, 2015 at 7:09am

Probably a mile or two north of K&R property, they own a lot, Gulfport 2013, If you signed in 2011 you probably signed 5+5 lease, pretty standard, where there is no negotiation they just repay you the same amount for the next 5 yrs and if they try to pay you less you can request release. your lease should have all the info you need... I wouldnt trust an oil rep as far as you could throw one, i find it hard to believe dormant minerals when almost all of K&R property has active Clinton wells on them, and Carrizo has already drilled a horizontal under their property imo. Just be patient and see what happens, highly unlikely any company will let leased ground expire in our area with the initial wells results to much money to be made, another problem our area has is there may be 6 different companies that leased minerals in a 600 acre section and they all have to work together when drilling a well.  there are at least 2 or 3 just on K&R property alone ( rhdk, enervest, chevron all have active clinton wells on K&R property). It will work out in time

Permalink Reply by nc man on June 18, 2015 at 10:02am

Do you see me smiling??

Thanks, Travis! Nice to hear from a "neighbor" about what is happening in the area of my mineral rights! I have posted other discussions before but never had any replies from anyone from the area my rights are located. So to hear from you, someone that is near mine, is so helpful.

I have had many great people sharing their info with me on Marcellus but none that was familiar with the K&R property area. This site has been a great way to familiarize with a subject I had no idea what it was all about.

Inherited these mineral rights from my Dad in the 80's. He sold his 88 acres of land in the 60's but held on to the mineral rights. I and my  two brothers each got 1/3 of the rights.

Dad loved to come down to his "farm"(just land/house) on the weekends, as much as he could. Dad has passed but I am sure he is looking down and happy for all his sons good fortune from his purchase in the late 40's!

Yes, we were told at signing that our rights were in a great spot! Always wondered, though, why after 4 years, no drilling??  Read from a lot of people on this site talking about royalties and had signed in 2011,also. Just thought we would be one of them but no go.------ I will stay patient, though!

But then last fall discovered K&R was trying to claim our mineral rights through filing "Affidavit of Abandonment", against our mineral rights.

Hired an attorney from Cambridge and filed a "Notice of Preservation", to protect our rights but are not 100% sure all is "fixed."

Your words are so promising, to say the least! Through you words, I have hope!

I thank you, again, for the time and information you have shared with me. I learned a lot.  I really am not familiar with any doings in the o/g industry. Living out of state doesn't help, either.

Hopefully, your words of expertise has been seen by others, in the same position as me, and they will see some light at the end of the tunnel, also.

nc man

Permalink Reply by Jan on June 18, 2015 at 2:13pm

nc man,

You will find this in your favor.  Decision from Ohio Supreme Court today:

http://www.supremecourt.ohio.gov/rod/docs/pdf/0/2015/2015-Ohio-2362...

Permalink Reply by nc man on June 19, 2015 at 8:15am

Jan,

OMG! The good news just keeps rolling in! What GREAT reading!!

I look back, now, and say--------------where was my faith?!

I read it over, Jan, and the years just  fit like a puzzle.

Dad quit claimed his deed to me and my brothers in "89.

K&R filed the abandonment notice June of '14, against our rights.

I learned, by chance, I might be involved and filed a protection affidavit in August '14.

56 days after K&R(landowner) filed to claim the mineral rights from us! Four (4 ) days under the sixty days!

Now, how can one not believe in divine intervention?!

And I was worried! Shame on me!

Jan, without you taking your time and sharing this link with me and all the rest needing to know this "news", also, I probably would still be worried! :)

In God's time not mine!

Again, thanking everyone, for your individual support and encouraging words ya'll have sent my way. I think of ya'll as friends!

nc man

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