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Freestone County Mineral Rights

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Freestone County Mineral Rights

Postby Giollabrighde » Sat Oct 29, 2016 12:15 pm

Mr. McCall, I purchased mineral rights(a small divided interest) for 3 properties in Freestone County Texas in 2004.  One of the reasons I bought them is that the seller was unleased, as his lease expired due to lack of activity.  Despite the sale, the seller signed a lease with Anadarko after my purchase(I assume he needed the 200 bucks).  Once Anadarko realized their mistake, they started calling me.  After telling Anadarko NO 10 times, they sent Corbut and Assoc. to pester me some more, and I told them no 10 more times.  My brother bought an identical divided interest, and he recieved a division order 2 months ago.  I called Corbut and they told me that I was being "drained" by the Abe Jones and Cunningham gas units, and they would bring me into the unit if I signed a 20% lease.  I told them no, and that I wanted to go non-consent.  They told me that if I didn't sign their lease, I would not be brought into the unit, and I would get nothing.  They also told me that there is ZERO chance that Anadarko would ever drill on my land.  They also said that I couldn't go "non-consent" unless I have rights inside the 40 acre drill site.  We had conversations which they confirmed I was not in a unit, so I had no rights.  To cut this story short, I went to Freestone County today, and all three of my tracts are in the gas units.  I talked to a lawyer at the TRC, and he said that Anadarko already knows that I should be in the unit, so a Mineral Interest Pooling Application might be successful.  I want to be recognized a part of both pooled units, but I don't want to sign their lease.  I prefer to wait for the payout.  What are my options, given that Anadarko has done everything to block me(including lying)?

ANSWER: Hello Robert.  The general rule is that an unleased mineral owner is not entitled to share in production from a unit, even if his tract is in the unit, unless the wellbore goes across the "unleased tract" or the welll is drilled on the tract.  To this extent, Anardarko is correct, although their approach to you is rather high handed and arrogant.

You basically have the these options as an unleased owner:(1) If there are other mineral owners in your property who have leased, you have the option of ratifying these leases to include your interest in these leases under certain circumstances-you will need an attorney to review your situation here if you decide to do this---in any event, you only have a right to participate in a going forward basis in production(2)  you have the right to execute an oil and gas lease, but this doesn't seem to be an option for you(3) and, finally, determine whether the Mineral Interest Pooling Act is applicable to your situation.  You definitely need an attorney to evaluate the Mineral Interest Pooling Act because it is not available to many unleased owners, and you may not improve your position in the unit over what you would have had if you had leased.

These are the options I see that are available to you.

Good luck Robert and let me know if you have any further questions.

---------- FOLLOW-UP ----------

Thank you for your answer.

I was once told by a land man that I could go "non-consent", and once the well pays for itself 2 times I would be in pay for 100% of my interest.  Is this an option for me?
Giollabrighde
 
Posts: 39
Joined: Sun Mar 30, 2014 2:36 pm

Freestone County Mineral Rights

Postby Eadric » Sun Oct 30, 2016 9:49 pm

Mr. McCall, I purchased mineral rights(a small divided interest) for 3 properties in Freestone County Texas in 2004.  One of the reasons I bought them is that the seller was unleased, as his lease expired due to lack of activity.  Despite the sale, the seller signed a lease with Anadarko after my purchase(I assume he needed the 200 bucks).  Once Anadarko realized their mistake, they started calling me.  After telling Anadarko NO 10 times, they sent Corbut and Assoc. to pester me some more, and I told them no 10 more times.  My brother bought an identical divided interest, and he recieved a division order 2 months ago.  I called Corbut and they told me that I was being "drained" by the Abe Jones and Cunningham gas units, and they would bring me into the unit if I signed a 20% lease.  I told them no, and that I wanted to go non-consent.  They told me that if I didn't sign their lease, I would not be brought into the unit, and I would get nothing.  They also told me that there is ZERO chance that Anadarko would ever drill on my land.  They also said that I couldn't go "non-consent" unless I have rights inside the 40 acre drill site.  We had conversations which they confirmed I was not in a unit, so I had no rights.  To cut this story short, I went to Freestone County today, and all three of my tracts are in the gas units.  I talked to a lawyer at the TRC, and he said that Anadarko already knows that I should be in the unit, so a Mineral Interest Pooling Application might be successful.  I want to be recognized a part of both pooled units, but I don't want to sign their lease.  I prefer to wait for the payout.  What are my options, given that Anadarko has done everything to block me(including lying)?

ANSWER: Hello Robert.  The general rule is that an unleased mineral owner is not entitled to share in production from a unit, even if his tract is in the unit, unless the wellbore goes across the "unleased tract" or the welll is drilled on the tract.  To this extent, Anardarko is correct, although their approach to you is rather high handed and arrogant.

You basically have the these options as an unleased owner:(1) If there are other mineral owners in your property who have leased, you have the option of ratifying these leases to include your interest in these leases under certain circumstances-you will need an attorney to review your situation here if you decide to do this---in any event, you only have a right to participate in a going forward basis in production(2)  you have the right to execute an oil and gas lease, but this doesn't seem to be an option for you(3) and, finally, determine whether the Mineral Interest Pooling Act is applicable to your situation.  You definitely need an attorney to evaluate the Mineral Interest Pooling Act because it is not available to many unleased owners, and you may not improve your position in the unit over what you would have had if you had leased.

These are the options I see that are available to you.

Good luck Robert and let me know if you have any further questions.

---------- FOLLOW-UP ----------

Thank you for your answer.

I was once told by a land man that I could go "non-consent", and once the well pays for itself 2 times I would be in pay for 100% of my interest.  Is this an option for me?
Eadric
 
Posts: 41
Joined: Mon Mar 17, 2014 10:50 pm

Freestone County Mineral Rights

Postby Dowle » Sun Nov 13, 2016 1:30 am

Hello Robert.  Based on the facts you jhave told me I don't see thatas an option. It sounds to me like the landman was describing a situation where a working interest owner, or lessee, goes non consent to the drilling of a well or other operation under the terms of a joint operating agreement.

Good luck and let me know if you have any further questions.
Dowle
 
Posts: 51
Joined: Tue Mar 11, 2014 3:34 pm


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