Question on Oil and Gas development.

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BigGuy
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Question on Oil and Gas development.

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Post by BigGuy »

I’m writing a sequel to “From The Delta Mud.” The setup for this one is that this guy makes it big in the dotcom industry. Around the turn of the century he sells out and buys back the family farm, lost in the late 80s. What he doesn’t know is that the bank has separated the mineral rights from the surface rights, and still owns them. I’m sure you can figure out where I’m going here. Here are my questions:
Who would be more likely to discover any mineral resources. Do oil and gas companies have an idea of where to find product and contact owners, or do owners request surveys?
If the owner of the mineral rights decides to go into production, what is a realistic way he would notify the owner of the surface rights? I’d assume a lawyer hired by either the oil and gas company, or the owner of the mineral rights.
How lengthy, detailed, and hostile, are the pre-producrtion negotiations likely to be?

Any thoughts, or corrections about misconceptions from knowledgeable sources are welcome. Please feel free to PM me, or send me an email. guy@guywheatley.com.

Thanks for any help.
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bbhack
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Re: Question on Oil and Gas development.

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Post by bbhack »

If you own oil and gas rights, the companies come to you according to their development plans. They do all the title searching. If no companies are interested in the area at the time, it's probably impossible to get them interested.

I can share a little through email later, as this topic won't work too well here.
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