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Author Topic: QUESTION ABOUT ROYALTY ALLOCATION  (Read 18132 times)

JT

  • Posts: 220
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #45 on: January 31, 2010, 01:58:07 PM »
Beazer,

I'm in the same boat, with the same questions/concerns. We have less than 20 acres, and  signed as an add on with the Fortuna FG at the end of last year. We are not surrounded by CHK, but they have the majority of the nearby leases. 

We'll just see what the future holds. In my gut I still think that Fortuna and CHK are going to have to start horsetrading in order to put their respective units together. And the protections offered in the FG lease were so much better than the boilerplate that CHK was offering.

I spent a little time reviewing the recent Otten unit declaration. After doing so I got a lot more comfortable that rolling the dice with Fortuna was a sound strategy.

FWIW a friend is a landman in  a different part of the country. He tells me that that swaps and flips are worked out at headquarters, and that landmen are very rarely kept in the loop.

We shall see.

beazer

  • Guest
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #46 on: January 31, 2010, 03:36:21 PM »
beazer,

I am afraid you have your facts and dates wrong on this one!  I signed my lease 10/08 and so did most of the other landowners.  The two larger parcels were signed prior to 2008! I got a five year lease and was paid in full.  2500/15/5 and that is what the others got. 

Why would we have signed leases for these small parcels with Fortuna on 10/2009 when the rest of our leases had been assigned to Chesapeake?  Chesapeake was already here on 10/09 drilling the wells? 

Three of us that signed those leases for the smaller parcels with Fortuna had around 1000 acres between us signed with Dominion in 2008.  Fortuna and Chief were here drilling within a few miles of us.  I had called Dominion several times and ask them what their plans for us were.  They told me they didn't have any plans and if they did I would be the first to know.  Chesapeake came along 11/2008 and wanted a pipeline ROW to cross the three of our properties and told us they had plans to drill several wells in this area.  We ask them if they could buy out our leases as well as the rest of the landowners leases in our group.  Chesapeake said they would try and they did get all of our leases assigned to them except for the Fortuna leases in April of 2009.

To the three of us the small Fortuna parcels that we hold are not much of a loss.  To the rest of the smaller landowners that don't have any other land, it is a very big deal!  They have all been calling Fortuna and they have been getting the same answers that I got!  If you are still a non believer stop by and I will show you the date on the Fortuna lease!     

Hey JEB,
We must be talking about two different leases. 

JEB

  • Posts: 1397
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #47 on: January 31, 2010, 04:11:22 PM »
beazer,

OK, glad it all clear.

JT,

Don't take anyone's word or situation on what may, could or can't happen.  It's going to be your problem if there is one in the end and nobody Else's.

Just a friendly piece of advice!  Call the O&G's involved and ask them what will happen if one or the other drills a well near you.  I think everyone that has a similar situation should do that.  The O&G's are the only one's that can tell you what will or will not happen.  We were told the same thing, all you have to be is leased with and O&G and you will receive royalties if one of them drills a well near you and your land is in the production unit!     


beazer

  • Guest
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #48 on: January 31, 2010, 04:25:49 PM »
JEB,

Now knowing that FG just purchased a (one owner) 50 acre lease land locked by CHK.. Why would Fortuna do it knowing they cannot use it?
Jethro has a good point. Mabye they got it knowing it will be worth something down the road since it is in a core area.
The fact FG bought it sure makes is seem that somewhere/sometime they will be working CHK. I quess time will tell. Thanks for your replys!

Beaz

beazer

  • Guest
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #49 on: January 31, 2010, 04:36:01 PM »
Beazer,

I'm in the same boat, with the same questions/concerns. We have less than 20 acres, and  signed as an add on with the Fortuna FG at the end of last year. We are not surrounded by CHK, but they have the majority of the nearby leases. 

We'll just see what the future holds. In my gut I still think that Fortuna and CHK are going to have to start horsetrading in order to put their respective units together. And the protections offered in the FG lease were so much better than the boilerplate that CHK was offering.

I spent a little time reviewing the recent Otten unit declaration. After doing so I got a lot more comfortable that rolling the dice with Fortuna was a sound strategy.

FWIW a friend is a landman in  a different part of the country. He tells me that that swaps and flips are worked out at headquarters, and that landmen are very rarely kept in the loop.

We shall see.

JT,

I had heard the same thing from someone reliable who spoke to a local landman with a large company. He told them that the O&G's, to quote him, "when it comes right down to it, leases are and will be swaped or sold like it was a Monopoly game".  One would think the O&G's will do whatever it takes to get the job done as it relates to making them money. 

Beaz

JEB

  • Posts: 1397
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #50 on: February 01, 2010, 04:29:48 AM »
beazer,

We should find out the answer as to what will happen real soon!

The other Fortuna landowners are finding out the same thing I did, no deal has been made to include these properties in anything.

Like I said a few days ago, maybe Fortuna is going to drill on each one of them?
That doesn't seem likely because one on them is a cemetery!

Fortuna leased these properties when the rest was a Dominion lease hold.  Maybe they were trying to work a deal with Dominion and lost out to Chesapeake?   

JEB

  • Posts: 1397
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #51 on: February 01, 2010, 11:36:01 AM »
I think I have the answer to if you are leased with another O&G and that parcel falls in a CHK production unit!  If no deal has been made with CHK to include your parcel you get nothing!   

I looked up the Otten and the VanNoy well declaration units.  The Otten is 942.50 acres and the VanNoy is 125.39.  Both are CHK production units.

Both units have parcels highlighted in red.

It reads:  Interior tracts highlighted in red hatch are NOT part of the declared unit and are excluded from the calculation determining allocation of production.

I think that pretty much answers the question!

ruby_99

  • Posts: 3509
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #52 on: February 01, 2010, 11:40:31 AM »
But are those parcels leased to anyone?
80ac AlleghenyCounty, PA still unleased, 70 ac Washington County finally leased
As always, use this link to sign up for Dropbox! Get rewarded with extra space for you and for me.

JEB

  • Posts: 1397
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #53 on: February 01, 2010, 12:53:46 PM »
But are those parcels leased to anyone?

Ruby,

I have no way of knowing, but I am going to ask Chesapeake.

Is anyone on the forum familiar with the Otten production unit that could find out this information for us?

I did check several of the other O&G production units and CHK was the only O&G excluding landowner parcels.
« Last Edit: February 01, 2010, 01:40:43 PM by JEB »

JEB

  • Posts: 1397
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #54 on: February 03, 2010, 08:29:34 AM »
If your land is leased to Fortuna and it falls in a Chesapeake production unit, this is what each Fortuna leased parcel has to do.

Each Fortuna leased landowner has to call Fortuna.  The telephone number is 607-562-4000 and ask for Bonnie.  You have to tell her that you are requesting that the parcel you have leased with Fortuna be transferred to Chesapeake.

She told me she would put it the request and I should have the answer in 2 weeks.

I can say one thing.  It took a lot of a time and phone calls before I finally found the person I had to make the request to!  
 

« Last Edit: February 03, 2010, 08:33:38 AM by JEB »

brownswissmomma

  • Guest
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #55 on: February 03, 2010, 12:42:19 PM »
That is why new legislation needs to happen to protect our property. They can drill right up against your property, frac and there is NOTHING to prevent them from taking your gas as far as it is recoverable. They don't care about you, the gas owner at all, there is no respect for your property. WAKE UP!!!

JETHRO

  • Guest
Re: QUESTION ABOUT ROYALTY ALLOCATION
« Reply #56 on: February 06, 2010, 07:12:17 AM »
That is why new legislation needs to happen to protect our property. They can drill right up against your property, frac and there is NOTHING to prevent them from taking your gas as far as it is recoverable. They don't care about you, the gas owner at all, there is no respect for your property. WAKE UP!!!
WORDS OF WISDOM BSM WORDS OF WISDOM...LISTEN UP PEOPLE ...THEY DO NOT CARE ABOUT YOU!

 


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