October 18th, 2013
WEEKLY SHALE
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Now that the government shutdown is over, we all can finally get back to work. Yeah right! For me, the most interesting tidbit to come out of this "shutdown" is that a mere 6-7% of the EPA workforce is considered essential. Essential defined as, "performing emergency work involving the safety of human life or the protection of property...." Considering that most of the regulatory hard work is done on the state level, perhaps this shouldn't be so surprising. My opinion; a slow day for the EPA is a good day for American energy independence. Thoughts? Giv'em to me and have a great weekend!  Keith Mauck / Publisher
 
This week we begin taking a look at state reporting regulations. With all of this production of oil and gas, how exactly does an individual landowner find out what is being extracted on their, or nearby, property? After all, knowing this information is important when negotiating an initial lease, re-leasing or keeping tabs on your well's production. 
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Should I start a landowners group for re-leasing?:  I decided the best way to research would be to talk to landowners that had already formed groups.  I got tons of great advice from each group landowner leader, but found it surprising that some groups paid percentages to consultants and attorneys, and some just paid normal hourly fees. This turns out to be a difference of millions of dollars in fees!  

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Division Order sent to me from CHK

 

API Interactive LNG Export Facility Map

 

East Texas Eagle Ford: Full Steam Ahead

 

Changes (the negative kind) to Royalty Payments 1-2 Years Later

 

Wilkinson County, MS Lease Offer 


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In Case You missed It....

For landowners who provide mineral rights for exploration on their property, the benefit rests in receiving royalty payments in the form of a percent of the money generated by the gas extracted from the property. Property owners often rely on these arrangements as a method for receiving additional economic use of the land, providing a steady stream of latent income-oftentimes for up to 35 years (the verdict is still out for shale wells). So, when large deductions are taken for post-production costs, they are going to notice.  

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