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Oil/Gas/Pooling unit question

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Expert: James H. McConnell, CPL - 10/25/2009


Question
Dear Mr. Coogan,

I know this may not be your specialty, but the two experts listed are not available.  

I am located in Louisiana and my family %26 I have 70 acres that were not initially leased by a an Oil Producer.  They have since contacted us to lease 40 acres - @ $200/ acre + 1/5 %26 a half royalty.  The problem is we were not in the Proposed Pooling unit.  In fact it stops right at our property line.  We have been contacted by a Geologist who is willing to go to the LA Dept of Conversation and Natural Resource to try and get us in the pooling unit.  Of course there would be a fee for his services,we do not have the money up front to pay him his fee.  He has asked for 1% of any royalty we receive from our pooling area and if the area is deemed dry he will get nothing.  Is this a good deal.  If it is can we put a cap on what he receives, like up to what he would have charged us to get in the pool.

Thanks for your time.  

Answer
I suggest you let the geologist represent you for a percentage of your royalty.  Something is better than nothing.  He is gambling his time and expertise and should get whatever he agrees to as a fee.  What are you thinking?  You don't have the money to pursue the hearing on your own and you are worried that the person willing to front their time and expertise might make some money.
You should be happy anyone is willing to help you on the front and should be grateful for whatever they get for you, as you would have nothing without them.

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James H. McConnell, CPL

Expertise

READ CAREFULLY BEFORE ASKING ME A QUESTION I will try to answer questions about Oil & Gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not in Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term of the Lease or conveyance, the royalty and the amount offered. Failure to provide this information will result in the question being rejected. I have answered more than 3800 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you. If you do not rate the first answer, do not send a follow up, because I will reject it.

Experience

I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.

Organizations
American Association of Professional Landmen CPL #5303

Education/Credentials
BA NSU, 1971

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