Thanks so much for the information!
Thanks for the information Daniel.
Vickie, there are two leases in Grady 5N-7W which went for 300.00 Per Acre, and 6N-7W is leasing at 800.00 Per Acre. I dont know if this is a good price, it is just what people around you are doing.
Francis, are you going to take that?
How close do you need to be to producing well for it to impact the lease offer for your own sections?
Francine, Thanks for the info. I wonder which sections in 6N-7W were going for $800. I’ve leased in both of those sections within the last two years and only got $225 and $250/acre.
Any idea how close you need to be to a producing well or a section that was leased at a good price before it will affect the price of your section?
Victoria, I think you get paid what they can get you to accept. Some people are easy. Others not so much. I got them up to 2500.00 (2010 was a very good year) probly could have pushed for 2700.00 and got it. Or pushed to hard and been left out. Who knows? I do know my neihbors took substantialy less.
I can take alot Michael, sometimes more than 1000% 
i HAVE AN INTEREST IN A GAS WELL IN OKLAHOMA. THE LEASE WAS SIGNED IN 1976 AND THE WELL HAS BEEN PRODUCING SINCE 1981. HOWEVER, IT IS PRODUCING IS VERY LOW AND GETTING LOWER DUE TO OTHER WELLS BEING DRILLED IN THE SAME AREA. MY QUESTION IS: WHO DECLARES A WELL NON PROFITABLE SO THE LEASE CAN BE TERMINATED? I SURE HAVE NO DESIRE FOR THE CURRENT LEASE TO ALLOW ANOTHER WELL TO BE DRILLED SINCE THE LEASE ONLY PAYS 1/8 ROYALTY. ANY GREAT OIL AND GAS MINDS CARE TO COMMENT?(I HOPE SO)
William B-Your lease is good until the well stops producing no matter what the rate, You may be able to get some action with a lawer as mentioned below. Is your lease with one of the bigger operatiing companies in the Woodford Trend? If not, the company that has the lease is just keeping the well going and hoping one of the bigger operators will come in and get what is called a “farm out” on your lease.
This farm out means that the company operating your well turns rights under that lease to a bigger operator to drill a possible Woodford shale well. You are stuck with your current lease and royalty and if a 'Woodford well is successfully drilled you will still get 1/8 royalty from that porducing well. The same lease you signed in 1976 will still be in force and classified as Held by Production (HBP).
Your only recourse at this point is to try to get the well abandoned. Then your lease ceases to exit. What depth is the well producing from? Do you know the name of the formation it is producing from? Look at your lease closely and see if there is a depth limitation clause in it. Many leases have a clause that limits the operating company to 100 feet below depth of the porducing formation. If you have this kind of clause and your well is producing from a formation above the Woodford shale those rights below the depth your well is producing may be considered open and be able to be leased below the formation of the producing well. If your production is below the Woodford shale formation then you are stuck with the current operating company. If your lease has no depth limitation clause the company operating your well has all rights as to depth as long as the well is producing no matter what the rate.
There could be a way out of your lease but it will take experienced legal help. Try to make a deal with the lawyer as described below were he does not get paid unless you gain some cash from a new lease.
If you attempt this get ready for a fight. The operating company now will not likely go away just because your lawyer writes a letter. Not in a play as active as the Woodford shale is now, even though it is slowing down because the the price decline in gas and oil.
Francis, You did good. I read a case where a land company took a beating on some leases that pooled for less than they paid for them.
Francis, thanks, this forum has been so helpful and I’m definitely going to get tougher now that I’m better educated.
Can someone who uses the OCC website explain something on the daily signing agenda (proposal order) what the far right column “Pro.” is indicating? There are a lot of N and very few Y under that column…does the N mean a no for that proposal? Thanks. I feel fortunate to have gotten this far on that site but I don’t know what it means.
Larry Trook—Thank you, Larry, for your response. With the Woodford shale being so active, I doubt that a letter would cause much concern, as Don mentioned. However, it would probably be my first step if i have to engage a lawyer.
Hi Don U.—Nice of you to rrespond once again. It is so generous of you to devote the time and energy to share your wealth of knowledge with those of of us less informed. It is appreciated,believe me.
The current operator is LINN ENERGY.(There have been a few) I have no problem with them. It is the age of the lease and the terms that were in vogue in 1976. The depth of the well is just short of 14,000 ft. vertical. I am not sure of the formation. The well is located in 24-12N-13W just SE of Hydro about 2 mi. The area around the well was pretty active before the price drop. According to LINN this activity has reduced the pressure at my well thus lowering the production further than it was. LINN’S production engineer said that they planed to puta compressor at the well head as soon as they prepare the well head, hoping to boost the pressure and the production. My last royalty check was for production thru Jan 2012. Since Jan. the royalty payment has not reached the $50.00 minimum.
I was hoping to find that the Habendum clause only applied to producing wells and current active drilling. I think this area needs some current thinking. Leases should take into consideration the technology advancement as well as inflatiion or deflation should it ever happen in the energy sector.HBP sucks.
Again, thank you for your insight.
Michael or Ron, could you please look at section 34-14n-9w in Canadian county eaglerock filed an emergency hearing that was supposed to be this past Tuesday and I was wondering what happened, if they got approved etc. thanks
William- I am trying to locate Hydo in the geologic picture of Oklahoma. Are you in or around 12-13N-11-12W? The comment of the operator about nearby wells lowering the pressure could mean that your well, at 14,000 feet, is in the Woodford shale. Are there horizontal wells nearby?
Take a close look at the map at the top of this page and try to locate your property in relation to that. I think you are more toward the red zone to the west. That would mean that a well in the red zone could be expected to produce dry gas without much liquid content.
If that is the case operators will be slow playing that area for a while with the price of gas at $3. $3 gas versus an $11,000,000 well does not work out to well.
I have a prospect in South Texas I am trying to place to get drilled. It is as large as any of the Woodford shale wells and at about 9000 feet. A well will cost $2,500,00. Ten or twelve wells could be drilled on the leasehold of about 2100 acres. A well there will produce about 30,000 barrels of oil per BCF produced. Business is slow for that proposal.
Back in the 80’s my Dad had a well producing very little and was not producing continuously. He had a lawyer write the company a letter and they abandoned the well and he got a good lease right after that. He had a deal with the lawyer to pay him a per cent of whatever lease he got so lawyer would not get paid unless he was successful.
Thanks Michael and Ron, Eagle Rock has 4 wells staked on 2 pads one is in the southwest quarter and the other is on the northeast quarter. I’m just trying to keep on top of what’s going on.
Cheryl, Thank you for posting that question, that is a part of the site I have never looked at. Very useful information. I think, not sure, that Pro. means Protest. I looked up the judicial case files on 2 of them that had Y and they both had a record of a protest being filed in the case.
David It looks to me like they moved it to Aug. 7