Expert: Alan H. Coogan Date: 7/14/2008 Subject: gas well lease
Question QUESTION: Mr Cogan, I have just signed a lease for .9 acres just west of Ft Worth texas. I got good rate of $14,000 per acrea and 25% of the gross gas, no production or other deductions. the situation is that there are two wells within about 1000' north of my property that have been producing for over 2 years. I thought I was included in those wells when I signed, but I am told that I am not.
When the new well closest to my property is operating, I am told that the plots are changeing and the people in the two wells north of me will get into my pool, but I will not get into their pool now or later. The people in the two older pools are getting thier gas and they will be getting part of my gas, but I don't get part of theirs now or later. The person that owns most of the land included in those two north wells always ends up making money when everyone around him does not, and I think this is a the plan of his agreement with the gas company, him being the major land owner. What is going on here, and how is this equitable to me?
ANSWER: Dear Dave:
The underlying facts are that 1. you signed. 2.you get 0.9 acres worth of royalty from the unit (pooled acres) regardless of how it is done. 3. All things being equal, you want to be in the most recent (undepleted) well.
AHc
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QUESTION: Well I am in the most recent undepleated well, but how are the old well owners getting in and getting my "Cake" after they havea hd 2 years of having their "Cake". Its seem they are "double dipping". Do they just keep redrawings the poll so they area always in the newest most undelpeated well? Thats what appers to be happening.
Thanks for your time and your help.
David
Answer Dave--I don't know, you will have to ask the company--but here are two thoughts-the company did not offer you a lease just for fun, it either wanted another well location or regulations required more. 2. You are making the same "amount of royalty percentage" 0.9 acres worth money--with any luck from a great well.The alternative is the company goes around you or force pools and you get nothing.
good luck, do not expect a lot--this is not Kuwait.
AHC
