Seismic Testing

Evening, my grandmother just called us. She is 92 ..She is retaining the mineral rights to the property we own . She has just rec'd a certified letter to do Seismic Testing on our property. I've done tons of reading here, and am so thankful for this site. Grandma needs money plain and simple however she does not want the property destroyed nor do we. We plan on building there in the spring. They only offered her $5 pr. acre. Am I to understand the following to be true..

 

The property is located on the Nauvoo Rd, Morris Twp..There is a well located on the road behind her , the same road Three Springs is on is within eyesight.

 

WE are all trying to help Grandma make the best decision that benefits her now and us later? Make sense?

 

A. Does this effect  her current lease which expires in Jan 2011.

 

B. Does this mean the possiblity of a well?

 

C. Am  I right in concluding their is property damage after Seismic Testing .

 

D. Are they doing this to get in under her current lease which the snowballed her into signing for little dollars!! Which expires in Jan 2011

 

E. Should we as "locals" keep an eye on this property more than we do? Do to the possiblity of seismic testing.

 

F. Can she renew her current gas lease with another company ? WITH A much better offer?

 

G. If she is contacted is it possible so are the neighboring properties?

 

H. Can she always refuse Seismic Testing without effecting royalites from exsisting neighboring wells.

 

J. Is the Seismic Testing a part of the 640 acre tract she might be in under her old lease expiring in Jan 2011.

 

K. Can Grandma sign a NO WELL lease but still benefit from royalites of another well , if of course she is in a tract.

 

K. Am I asking to many questions? :0)

 

 

I am reading Seismic Testing companies are paid by the gas companies to help them locate gas  pockets? My terminolgy may not be correct but I think you will get the general drift of my questions .

 

Thank You , your help is appreciated. RobinSJ

 

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Replies to This Discussion

Permalink Reply by Ann Ticopa on November 22, 2010 at 7:02pm
But the grandmother's mineral rights are leased. Why would they scoot around the property because she wouldn't sign an additional agreement for them to do seismic testing? (Permission for seismic testing was given in the lease she signed.)
Permalink Reply by Lynn Wigglesworth on November 23, 2010 at 12:53am
And with no mention of royalty? And the contract is with a land company, not a gas company? That all sounds so odd to me, but I guess the new generation of leases that I've seen are completely different than just 5 years ago.
Permalink Reply by Robin Jackson on November 23, 2010 at 3:16am
Yes to all the above..She is locked in, Seismic Testers are hired by AnaDarko Gas Company, through a third party 5 yrs. ago named Jim B..

I got all this info yesterday. Now onto the guy in charge of that area today. UGh

Gas royalty is listed as a gentlemen referred to above. (1/8)..or 12.5%

Not much to do but beware ..Even if she chooses not to sign she is still locked in but yes th ey can and will scoot around her.

I will keep you all posted. RobinSJ
Permalink Reply by Ann Ticopa on November 23, 2010 at 5:43am
Robin:
Have you confirmed that Bourbeau still hold's your grandmother's lease - or have they flipped (sold) it to Anadarko? Anadarko is a gasco that's active in the Morris area.

Threatening to space out (drill around) a property during lease negotiations is a tactic that landmen sometimes use. But it is not reasonable that a gasco which holds a lease (that includes the right to do seismic testing) would space out the property because the landowner would not sign a redundant seismic agreement.

Veritas does have a reputation for being high-handed at times. Google on these three words: Tioga Anadarko Veritas
If you get the same results I did, the articles with "Cogan House" and "Seismic testing" in the titles have some local info. (And perhaps some other articles as well.)
Permalink Reply by Robin Jackson on November 23, 2010 at 12:46pm
Thank you everyone for your opinions and help!! This is an awesome place and your all awesome people to take time from your lives to help us..

In essence we are locked in to the lease, but the companies have all been very kind. Today the new landsmen for the area called..Her name is Sherry House. She was very kind and told us , we have a the rights when it comes to Seismic Testing because we are the landowners. They sent Grandma all the stuff because that is what came up in the court house when they checked and it is true..WE only recently became owners. We are ok with all of it but on Monday we are to call Sherry and she will direct us to the person that needs to send us a copy of the Seismic Testing spots and when it will occur..I'm grateful for a very nice Landsmen..RobinSJ

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