MS Landowners: Are your property rights being violated?

As an owner of commercial property in Osyka MS, Halcon Resources knowingly took possession of our property, constructed a bridge and 22 ft wide gravel road to its Greenlaw Well site that's south of the MS line. Halcon verbally agreed to pay damages and execute a surface use lease.  However this was a delay tactic until the drilling was completed in Dec 2014. They pulled out before fracking and don't plan to return in 2015. Our settlement and lease offer was also withdrawn at this time, yet they have continued to trespass including oil tankers and construction crew.  This is not a company too broke to meet its obligations. In a year end presentation to financiers, they announced over one billion dollars in revenue. If you've experienced problems with Halcon or other oil companies, please let me know.  I'm reaching out of MS officials (Gov and Senators) asking for assistance in protecting our property rights.    

   

Tags: Help, in, property, protecting, rights

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Although they may have reported revenue of $1B for 2014, it was recently reported that Halcon had $3.75B in debt at the end of 2014. They are not doing well financially as they have had significant layoffs. Good luck with your problem, I hope that you get it worked out sooner rather than later.

http://www.investopedia.com/stock-analysis/041415/halcon-resources-...

Thanks for this.  I've heard the same from two informed sources.  However, even their most recent financial report for first quarter 2015 to their investors is saying they are in good standing?? 

Joyce, have you contacted your sheriff or county DA?  I think you are more likely to get assistance from them for simple trespass than pursuing wider claims with the governor or legislators.  Stop the trespass and you may get Halcon's attention as to your surface use agreement and damage claims.

This is too much for the mayor and deputy to handle in OSYKA.  The deputy tried to stop some of the trucks when traveling down the road and they passed him by!  Criminal charges may get their attention but the question that has to be resolved is whether there's a public road easement.  We've done a title search and asked for documentation from any- and everyone.  The courthouse in Magnolia MS designates the dirt road that's used by land-bound LA residences as a "private drive".  Trust me I've gotten Halcon's attention and they are threatening to "take me to court" for obstructing the road! 

How about the DA?  They should be the first step.  Don't get into a tussle with Halcon until you have an opinion from the DA and possibly an order from the court.  Halcon's financial state is irrelevant.

As much as I agree that the situation is wrong they actually might not doing anything legally wrong. Mississippi law regarding surface use/damages is pretty bad for the surface estate land owner. Depending on the wording in the mineral deed, that created the mineral estate, or current lease (if there is one) covering the minerals on that tract, the company may have to the right to do what they are doing. In Miss the mineral estate is the dominate estate. Most of the time paying surface damages and or getting a surface lease from the surface owner is courtesy given by the operator, not a requirement. As you can read in the case I cited below as long they are not doing any more damage to the surface than is needed to produce the minerals they are in the clear. I was actually surprised this was the law myself. Be the case the next and only real step is to go the legislator to get this fixed. 

The argument I would use to plead your case for change would be that way wells were produced and drilled when the law/precedent was established is much different than it is today. Well pads were much smaller and back then (as well as the less daily traffic in and out) and now with some of the pads getting to be 5-10 acres plus along with all the needed facility (as well as the expected life of some these wells) the surface estate owner needs to be compensated.

In a hurry to write this, so sorry for any errors or non-sense that might have occurred.

https://scholar.google.com/scholar_case?case=15770817142506005107&a...

Good points Nixon.  Here's the twist.  Greenlaw well is in LA not MS.  We don't have a lease with any oil company - Goodrich I understand would have jurisdiction in this section of MS.  Nor does MS have ANY laws governing cross-state well production except that oil cannot be taken from the MS side of the line.  Complaints to the LA Office of Conservation have gone unanswered.  What has me wondering is why they didn't take advantage of the LA lease holders and build a road from the LA side.  Seems that is was to save money - shortest route to a public road.  I'd love suggestions on how to get protections in MS laws.  

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