Friday, February 4, 2011

Some Titan Leases at Hilliard may be expiring...is yours?

According to filings with Denton County and public record testimony at a recent Texas state hearing, a lease you signed with Titan Operating may be or might have already expired. Many leases were signed with effective dates of January 2008 with lease terms of only 3 years and contained language such as the following...."for as long as hydrocarbons are produced in payable quantities.". Here's the problem, although the Hilliard 1H North Unit and 1H South Unit wells have been drilled, they have not been completed nor are they producing, but don't take our word for it.

According to recent testimony from VP of Operations for Titan Operating, LLC, Chris Hammack, there maybe some issues with the leases as currently held.

From recorded public, sworn testimony....

Q. "And you said it was drilled and completed. So has it been completed?"
A. "It has not. I said it would be drilled and completed."

Q. "So is it producing now?"
A. "No, sir, it is not."

Q. "Has it produced anything?"
A. "No, sir, it has not."

Some may say that the "force majeure" clause may come into play, however, force majeure predicates itself on the fact that the event must be "outside the control"of Titan. In this particular case, the wells could have been completed and gas produced from the unit, but according to Mr. Hammock's own testimony, it has not. Since nothing precluded Titan from completing and producing from the unit under the Hilliard tract, it can easily be argued that force majeure does not apply.

If you have any questions and feel you deserve a new lease and new signing bonus, you can contact Titan Operating at 817-698-8000. You may want to have an attorney look over any offers made before signing.

22 comments:

Anonymous said...

You FMCAUD people are so stupid, all you did is ensure that Titan will have valid, legal leases when they re-sign all of the expiring leases. You act as if Titan doesn't have the time and resources to do so.

Anonymous said...

I wish our lease was expiring. Ours won't expire for a couple months.
Is it possible that this well won't be producing in a couple of months?

Another Concerned Citizen said...

anon 3:47. We don't know when it will be producing. Keep an eye on the Gas Well Status Sheet on the Flower Mound Oil & Gas page. Also, you can check on the Texas Railroad Commission website too. We will keep checking as well.

Anonymous said...

This is so funny. All those that signed leases are sitting their checking their mailbox for their little check to come.
Don't hold your breathe. lol
When, and that is a huge WHEN, the checks do arrive they won't cover what the decrease in property values ours homes just experienced when that lovely wall went up on Hilliard.

Anonymous said...

Why did Titan drill both those wells if they weren't going to produce them right away?
Did they think it would help them get the Rule 37 exception?
It seems they took a big chance.
Is that why you mentioned the force majeure? Because it seems they didn't have to drill those wells until they knew they could produce them.
I heard they don't have enough leases to drill without a large number of Rule 37's. I hope those expired leases add to that number of unsigned leases.

Anonymous said...

Force Majeure-An event that is a result of the elements of nature, as opposed to one caused by human behavior.

Anonymous said...

Force Majeure doesn't have to be an "Act of God", but if it is something that reasonable could be expected to happen it does not qualify. In this case, Titan KNEW they had leases expiring, yet made the choice NOT to complete the wells. Even a freshman judge would not rule in their favor.

Anonymous said...

@anon 4:01
"Why did Titan drill both those wells if they weren't going to produce them
right away?"

They possibly thought that no one would protest the Rule 37's, if that is the case they thought wrong.

"Did they think it would help them get the Rule 37 exception?"

See above.

"Is that why you mentioned the force majeure? Because it seems they didn't have to drill those wells until they knew they could produce them."

See above.

"I heard they don't have enough leases to drill without a large number of Rule 37's. I hope those expired leases add to that number of unsigned leases."

Since it is safe to assume you would drill the "easy" wells first, it is also a safe
assumption that the subsequent wells would also require Rule 37's, perhaps affecting
a higher number of non-lessors than the first 2 Rule 37's.

Anonymous said...

According to the Texas RailRoad Commission, it appears-(unsure), due to the number of protest, they have re-drawn/re-submitted the information making the Hilliard area smaller-"dropping the Henderson Murphy Survey-Abstract 822" at this time.

This could change in the future. Best of Luck...

Anonymous said...

" re-drawn/re-submitted the information making the Hilliard area smaller" - that's just to increase the change of getting a favorable outcome from the RailRoad Commission, they didn't want to show the high % of people who did not sign in the larger plat.

Anonymous said...

Looks like JT will not be getting the $20.00 a month.

Anonymous said...

To Feb. 5, 2011 12:13 am:

It also means Hilliards laterals can not go out as far.

Anonymous said...

Forget signing a new lease, you can't fool me twice!

Anonymous said...

Ronnie is surely a character. He flies the flag and then collaborates with Titan to take minerals from other folks with the Rule 37 (state sanctioned robbery of minerals belonging to others)

Anonymous said...

Wait, wait, wait a minute. I remember Hilliard saying how this was all about "drilling on his land" and don't infringe on "his rights", but now all of a sudden they need the little homeowners to make the wells profitable? So, it wasn't really about HIS rights all along, it was about stealing the property of others who did NOT sign so THEIR well could profit them. Thanks for clearing that up.

Anonymous said...

Very "Well" put and clearly stated. You are -as they say- spot on Feb. 5, 2011, 2;13 pm!

Anonymous said...

Don't let Titan tell you "We couldn't complete the well because of the Rule 37." While it is true they cannot legally frac within the Rule 37 portion of the well, they can complete and produce gas from the Hilliard portion, the part that is NOT the subject of the Rule 37.

Anonymous said...

To take something that is not yours is a sin, because God said in Exodus 20:15 “Thou shalt not steal” that is the 8th commandment

A thief is one that steals. If you receive something that is not yours you are as a thief because you accepted into your mind and you assumed it into your possession from another source, you have received stolen property; therefore you are as a thief.

Besides Hilliard, Temple Baptist Church has also leased their lands and hope to profit from this. Do they have any opinion on this?

Anonymous said...

You forgot the 11th commandment, "Take one for Titan". Titan 1:1

Anonymous said...

@Anon Feb 5 10:09am

How were you fooled the first time?

Anonymous said...

They said the drilling would be in NorthShore club, then they pulled an ol' bait and switch and now I look at it.

Anonymous said...

Another day, more leases expire, this is easy.