Are my minerals held by production

First, thank you for your patience and your expert advice you provide to people like me who have inherited mineral rights, but have very little knowledge. I’m trying to figure out how I can tell if my minerals are held by production of an old lease. Sec 15 01S 04W Stephens County, OK Any help would be appreciated.

Hi Myla, it may depend on which part of the section your minerals are in and also on the language in your current lease(s). There is a definite producer in the SW and several shut-in wells in the NW that could be holding your lease. Mack Energy is listed as the operator for the older wells.

https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php

This is the site where I go first. I type in 15 01S 04W in the location box and it pulls up all the wells that produce from that section.

It is very likely that you were held by an old lease, but for how long is the question. There was a waterflood called the North Alma Penn Unit where was active until recently. Not know how old the lease is or what it says, I cannot comment fully. Are your trying to recover lost royalties? Is someone trying to lease? What quarter section are you in? Trying to point you in the right direction.

Continental has four cases pending for a new horizontal well. Have you received the mailings on that?

No! I’ve heard nothing. Where are these located?

Myla is asking about 15-1S-4W. Continental is planning a well with 10 & 15 1S 4W. Activity is picking up in that township

M Barnes, have you seen anything in sec 2? Lots of old Goodwin wells there

1S-4W or a different township

I’m sorry, yes, it’s same.

2-1S-4W has no new OCC orders or permits at this time. Several leases back in 2019, so those will last until their expiration date in 2022 unless they are drilled.

I have searched to the best of my ability, and can’t find anything on the cases Continental has for new horizontal well Sec 15-01S-04W (since I don’t have any case numbers, etc). I don’t believe I have received anything on it.

The well may be called Village 1-15-10XHW. The surface location will be in 22, so look there on the OCC website. There is a permit as of 1/12/22, but no notice of spud yet. Citation had wells planned but dismissed them. The Continental cases were pending at the OCC. Case numbers are 202102209, 10, 11. Cases were supposed to be Nov 8, moved to Nov 15, moved to Nov 29, moved to Dec 13, moved to Jan 24 where finally recommended. Patience until they drill… Contact Continental if you have not received any mailings.

I also own interests in both sections 10 and 15 for this well. I have not received notification of the permit that you so graciously found and wrote about. I have searched on the OCC site and do not find it there either. Where should I look to find that permit? I did receive mailings about the application and my name is listed on the exhibits for the application.

I also have another question. You mention that an owner could be HBP on a shut in well. I have noticed that some of the wells in theses sections have been shut in for years. How can a current owner be HBP with an old DO for a shut in well?

Thanks in advance for any information.

https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx Type in Village in the well name. You will not get notice of a permit. You have to look them up yourself. I figured out the location by reading the cases and looking at their exhibits.

Here is the permit. https://imaging.occ.ok.gov/OG/Well%20Records/1DDC91D5.pdf

If a well is shut in, but the operator is paying a shut in payment under the terms of an old lease, then it can hold the acreage. Rare, but happens. I have a few like that and it is irritating to get $1/ac per year from an old lease when there is horizontal drilling all around and the operator does not have the economic ability to drill new wells.

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That does sound like a rotten loop hole

If your minerals are part of a waterflood unit that still has production, those minerals are HBP and you aren’t entitled to shut in royalty payments. I haven’t researched these sections but this area has lots of old waterfloods.

Todd has a good point about the waterflood units.
You can type your sections 1001S04W or 1501S04W into the OCC Unitization link and find out which waterfloods. Some of them may still be active and hold some of your shallow acreage. It can get quite complicated.
https://imaging.occ.ok.gov/imaging/OGUnitization.aspx

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