From the SantaFeNewMexican.com, "Knute H. Lee Jr. had a pitch for the eastern Mora County residents who showed up Feb. 10 for a barbecue he hosted in the Ocate Community Center: Lease out your oil and gas mineral rights through his Albuquerque company, KHL Inc.
A total of 116 people from surrounding communities turned out to chow down on barbecued beef brisket, chicken and potato salad, and to hear Lee's proposition.
"Several people were opposed to leasing," said Ojo Feliz resident Rose Josefa, who attended the event. "Many were interested in how the royalty and rental system works. The rest were quiet but not very welcoming. I didn't get the sense that people were jumping up and down over his offer."' (click here for full article)
Also from the SantaFeNewMexican.com, "But here's the kicker for people who don't want to lease their mineral rights, such as Rose Josefa in Ojo Feliz. She might have no choice but to allow mineral extraction from under her land — although she could make some money from it.
One way is through forced pooling of mineral leases within a spacing unit. The state determines how many wells are allowed per spacing unit, Fesmire said. The spacing unit varies depending on the depth of the hydrocarbons, whether the well is for oil or gas, and whether the area is controlled by any special rules. In New Mexico, those units vary from 40 acres up to 320 acres. In California, spacing units are as small as one well per acre, according to the Oil and Gas Accountability Project, a nonprofit dedicated to educating property owners about hydrocarbon development.
If Josefa's property falls within the same spacing unit as neighbors who agree to lease their mineral rights, she can be forced to join in the well and the lease pool, Fesmire said."(click here for full article)
A total of 116 people from surrounding communities turned out to chow down on barbecued beef brisket, chicken and potato salad, and to hear Lee's proposition.
"Several people were opposed to leasing," said Ojo Feliz resident Rose Josefa, who attended the event. "Many were interested in how the royalty and rental system works. The rest were quiet but not very welcoming. I didn't get the sense that people were jumping up and down over his offer."' (click here for full article)
Also from the SantaFeNewMexican.com, "But here's the kicker for people who don't want to lease their mineral rights, such as Rose Josefa in Ojo Feliz. She might have no choice but to allow mineral extraction from under her land — although she could make some money from it.
One way is through forced pooling of mineral leases within a spacing unit. The state determines how many wells are allowed per spacing unit, Fesmire said. The spacing unit varies depending on the depth of the hydrocarbons, whether the well is for oil or gas, and whether the area is controlled by any special rules. In New Mexico, those units vary from 40 acres up to 320 acres. In California, spacing units are as small as one well per acre, according to the Oil and Gas Accountability Project, a nonprofit dedicated to educating property owners about hydrocarbon development.
If Josefa's property falls within the same spacing unit as neighbors who agree to lease their mineral rights, she can be forced to join in the well and the lease pool, Fesmire said."(click here for full article)
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