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To: TheWriterTX

You’re right. There is no real connection between fracking and leasing land. Fracking is an operational process. Leasing is a legal process of transfering rights. But every royalty owner always has the right to participate in the well. The guys who get screwed are the ones who own surface rights, but not the mineral rights. Yet the courts have ruled that those owning mineral rights have the right to produce those minerals and receive the value for them. And the cheapest way of producing them is to sign a lease which effectively gives the majority to a producer who is willing to invest capital.


19 posted on 01/01/2013 11:02:49 AM PST by kjam22 (my newest music video: http://www.youtube.com/watch?v=l7gNI9bWO3s)
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To: kjam22
Having minor royalty interests in both Texas and Arkansas, can't say about Oklahoma, but “But every royalty owner always has the right to participate in the well.” is not correct, depending on the meaning of participate. If a minor interest owner refuses to lease, the State will not allow the refusing owner to stop the well. You will be included like it or not.

Theoretically, the refusing owner will get the “standard” lease royalties, but the developer has no obligation to find you to give you a check.

22 posted on 01/01/2013 11:37:02 AM PST by X-spurt (Republic of Texas, Come and Take It!)
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