Good luck on your well. I have some mineral interest in the Lyle. We are very happy.
Ours must be the “step-out Well” 4 miles from the Lyles.
Judy, Congratulations and thanks!
They should pay interest. A year is a long time to set on money from the production of a whole section.
Larry, Completion Order says 12-23-10. They must’ve had division problems, a second Pooling Order was final on 12-12-11! I hope they paid Francis that 12% interest I heard the are supposed to pay.
Larry, Has Continental started paying you yet? They are still drilling ours. Maybe will get a check by next Christmas.
Francis When was the well completed. Surely not last December and it took a year to pay you?
Not paying yet. I talked to them and they sold first oil July 2 and said we should get division papers end of Nov or Dec. Still waiting.
The timing of payments to mineral owners is governed by the Production Revenue Standards Act (Title 52 O.S. Section 570.10). In general, the operator has 6 months from the date of first production for the first payment and then payments trail the sale of the product by 60-120 days, depending on if the payments are made by the purchaser or by the operator. If payments are late, they owe you interest. The interest rate is 12% unless title is not marketable, in which case it is 6%. There are also some exceptions for small checks. They can hold payments until they reach a certain amount. It’s all in the statute that I’ve linked to above.
What is the best way to find out about first prduction of a well?Is there a state statue on reporting of production of a newly drilled well with time limits etc? It seems through my study of the progession of the Woodford through Grady county that many of the companies are not reporting there production to the OCC website. It seems like the only way we find out these stats seem to be bye quarterly reports by these companies if they mention the wells.
Richard there is a section in the business page in the daily Oklahoman that shows all the well completions and intent to drill. It takes about 3-6 months after completion before it makes the paper.
Just got our first royalty from the Smith 1-29H! Canadian 29, T14N, 9W. If my math is correct, Devon has recouped about 6 million dollars since Dec 20, 2010. The paperwork I found put the cost of drilling that well at 8 million. 1 1/4 year payback! Pretty good venture I would say, even if the well cost 10 million. Most good buisness models put payback at 5 years.
It took a year almost to the day. I was told this was not uncommon.
Larry I do not know if this will help but it is worh a try. Go on the OCC website and go to the oil and gas division and under complaints file a complaint online about how long it is taking to get divison orders and payments. I had money held by a company and had proved it was ours and they keep holding money so I filed a complaint on the website and about a week later i Had a check in hand. I think Francis could file a complaint on the website and would probably draw interest off her overdue payment.
I am sure all this is controlled by statute in Oklahoma. But, if you think any company is going to go out of their way to service any individuals oil and gas payments, I’ve got a bridge to sell you somewhere.
Know the statutes as they apply to you and use the advice below and file your complaints. With a heavy complaint load against any one company the OCC is bound to act by order of law on behalf of the people.
From what I can pick up on these threads, the complaints seem to be all over the place.
Here is an article out of todays Oklahoman. Looks like Devon is continuing to invest a lot of money in the Cana.
Devon moving ahead with plan to reuse water in western Oklahoma
Devon Energy Corp. has spent about three years developing a facility to allow reuse of water in its operations in western Oklahoma.
BY JAY F. MARKS [email protected]
Published: December 23, 2011
More than three years of planning are coming to fruition for Devon Energy Corp.
Fifteen to 30 percent of that water returns to the surface in the first few weeks after a well is fracked, officials said. About 60 percent of the water is recovered over the ensuing five years.
The Oklahoma City-based oil and natural gas producer is building a massive pit between Geary and Calumet to hold produced water from nearby wells so it can be reused for future operations.
Peter McDonald, an operations engineer at Devon, said officials found that the water coming back out of its wells in western Oklahoma’s Cana Shale was of sufficient quality that it could be used again, limiting the need to use surface water for hydraulic fracturing operations.
“We felt that we had the perfect opportunity to do that,” he said.
The problem was the Oklahoma Corporation Commission did not have any regulations governing water storage facilities needed for such an operation: a pit that could hold up to 500,000 barrels of water.
“They had nothing on the books at that time that covered anything of that size,” McDonald said.
Devon officials worked with state regulators to write the necessary rules, which were subject to peer review before being approved.
The company got clearance to proceed with its water recycling operation this summer.
McDonald said Devon is building a massive pit to hold flowback water on 40 acres it purchased in Canadian County. There also will be a filtering system to remove sediment from the water.
“We’ll use this as our fracturing water in our leases that are around there,” he said.
The facility is expected to be completed in the middle of 2012.
Oklahoma Energy Secretary Mike Ming said he is not familiar with the Devon project, but such water-saving endeavors are not unique in the oil and natural gas industry.
“The industry is doing everything it can to reuse that water,” he said. “It allows you to gather water at your own convenience and then use it when you need it.”
Ming said such preservation efforts are advocated in the state’s new energy plan.
“We think it’s an area that’s ripe for innovation,” he said.
Devon is installing a pipeline system to carry water between area well sites and the pit, which will cover 2,500 square feet and be 14 feet deep. The pit will have a 60 mm liner to prevent water from leaking into the ground.
McDonald said the system — which will include about 40 miles of pipe — will be able to carry water to well sites within about a 10- to 12-mile radius of the storage pit, depending on the size of the pipeline nearest the site.
He said there are about 30 potential drilling sites within range of where the pit would be built. Multiple wells could be drilled from each one.
McDonald said the water recycling facility will help Devon cut its drilling costs, but it is too soon to put a dollar figure on those savings. He said the facility should reduce truck traffic to the company’s well sites.
McDonald said Devon is developing another facility west of Geary on the site of a saltwater disposal well.
Read more: http://newsok.com/devon-moving-ahead-with-plan-to-reuse-water-in-we…
Hope everyone has a Merry Christmas!
Wow, Kevin, that pretty much confirms some other shady business I have been hearing about !
Kevin, Thanks for passing this on to us. What a nightmare!