I have some minerals in Kingfisher County that are on a quarter that is under production through a lease dated 1979 with a company that is no longer operating. A new horiztiinal well has been permitted. I’m being told that these minerals are not eligible for bonuses and that I’m bound by the original agreement of 1/8th. How can I be bound by agreements from a lease with a company that is no longer operating and a different type of well.
Strange, but true. Your production has been sold to some other operating company and they hold the old lease. You are stuck like a bunch of the rest of us. The only way out is if your original lease had a depth clause, but back in the 80's those were very rare and you probably don't have one.
Yeah, it's the pits - my husband is bound by leases from the teens & 20s.
Harrison and Mecklenberg, Inc (They should be in the whitepages)
Have really made a name for them selves out here assisting mineral owners like yourself get the old tired leases released. I'm not up to speed on your exact situation, but Im sure if you gave them a call they will tell you pretty quickly if they can help or not. They do charge a premium in my opinion, but if the new well lasts another 30 years, then it was well worth the fee they take from the bonus money to get moved from 1/8th to 3/16ths (roughly 33% more revenue from 1/8th (12.5%) to 3/16ths (18.75%)
Most of the vertical well operators in the area have lost a lot of old legacy leasehold recently due to Harrison & Mecklenberg and might offer a settlement to amend your royalty if they wont release the lease.
Squeaky wheel always gets greased.
They also have to name you in a respondents list for any new OCC applications or orders. If a new 640 acre unit is proposed/spaced/pooled on your interest, file a protest with the commission with a well respected firm. Its worth the fight if you have a large interest. If its a minimal interest then the larger interest owners will owe you a thank you for your time and troubles
Thank you for the information. I will call tomorrow.