This blog is hosted by the Louisiana Oil and Gas Association. We are a non-profit association that has been in operation for over 13 years. We hope to provide useful information and answers to your questions about the activity in North Louisiana, called the Haynesville Shale.
We own 675 acres in Natchitoches parish. The previous owner of the land reserved 50% of the mineral rights for 10 years. If we have a natural gas lease on our land, prior to the 10 years ending point, who makes the negotiation? Is the previous owner entitled to lease proceeds (mineral rights) or merely the royalties in the event that natural gas is found?
Each party is eligible to negotiate for their interest in the property – there could actually be two different leases. The minerals would remain owned 50% by each party until the end of the 10 year period – if no well has been drilled on the property or the property is not included in a unit, the 50% scheduled to prescribe will in-fact do so. To expand this explanation, in the event of a well being drilled on said tract and/or production before the end of the prescription period, minerals would be interrupted and remain separate. This would be subject to whether or not a well was drilled on the tract in which case minerals would be interrupted as to the entire tract or if the well is located off the subject tract and on a separate sight and the property would be included in a unit – the minerals included in that portion of the property included within the unit would be interrupted and the portion outside the unit would prescribe to the current surface owner – given the factors listed below.
All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of LOGA (unless LOGA is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this LOGA web site does not mean that LOGA has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. Any messages that are authored by LOGA are solely meant for informational purposes and in no event shall LOGA be liable for any consequential, incidental or direct damages suffered in the course of using the information. We encourage visitors to the forum to report any objectionable message to Gifford@loga.la. This forum is not monitored 24/7."
2 comments:
We own 675 acres in Natchitoches parish. The previous owner of the land reserved 50% of the mineral rights for 10 years. If we have a natural gas lease on our land, prior to the 10 years ending point, who makes the negotiation? Is the previous owner entitled to lease proceeds (mineral rights) or merely the royalties in the event that natural gas is found?
Each party is eligible to negotiate for their interest in the property – there could actually be two different leases. The minerals would remain owned 50% by each party until the end of the 10 year period – if no well has been drilled on the property or the property is not included in a unit, the 50% scheduled to prescribe will in-fact do so. To expand this explanation, in the event of a well being drilled on said tract and/or production before the end of the prescription period, minerals would be interrupted and remain separate. This would be subject to whether or not a well was drilled on the tract in which case minerals would be interrupted as to the entire tract or if the well is located off the subject tract and on a separate sight and the property would be included in a unit – the minerals included in that portion of the property included within the unit would be interrupted and the portion outside the unit would prescribe to the current surface owner – given the factors listed below.
Post a Comment