David, There were 2 applications for Location Exception, first one said “matter was DMOA, Stack(the attorney) to prepare motion”. The second one said hearing scheduled for 8-7-12. There was one application for Increased Density it said hearing scheduled for 8-7-12. The Spacing and Pooling orders were approved in July 2011. I don’t know why there were 2 apps. for Loc.Excp. and I don’t know what DMOA means. Maybe that motion was dismissed and the other one took it’s place. Sorry if I’ve given you more questions than answers. Maybe the emergency is they have run out of time on their Spacing and Pooling Orders.??
Could it be “Dismissed Motion On Appeal” ?
Is it normal for a mineral lease contract to ask for your “riparian rights” ?
Don U.—the subject well is at 24-12N-13W, the northern part of caddo cty. I also own rights in Blaine Cty, 16-13N-13W aand 26-13N-13W. These both have dry horizzontal gas wells brought on line in 2012.They are just to the NE of the Caddo well which is also a dry gas vertical well. The Blaine/Caddo cty line runs through Hydro. It looks to me like all three are in the Woodford Shale. I suspect the activity around the Caddo well is horizontal drilling.
As an amature in this business, i would think that a vertical well that has produced for 31 years that the ajacent area would be a good prospect for todays horizontal drilling. Therein lies my concern. to have it happen with a 1/8 royalty just does not seem like a fair shake.
Michael H…thank you for the answer…protest makes sense.
William-If the verticle well that is producing out of the Woodford I think the operator will try to keep it on line and get a larger operator to come in and drill some horizontal wells to drain the unit. From what you relate you seem to be in the dry gas area. The gas price will really slow down drilling in that part of the play.
That 1/8 royalty will stay with your lease until the well stops producing. I would think the operator will do eveything he can, as long as it does not cost too much, the keep the well going hoping for a larger operator to see that this unit has some gas left to give up. He may even be contacting some of them and making an offer.
You will have the 1/8 in case he makes something happen as far as a horizontal well is concerned. You still have the option to go through a lawyer and try to have the well capped.
Daniel, Did you get 12% on the entire amount or just the portion over 6 months late?
The entire amount in both cases.
Thanks William and Daniel, I’m sure you guys know how I feel the waiting is nerve wracking, so close yet so far…!
Could any of you veteran royalty owners explain to this newby again the procedure of first payment. If 6 month has passed do you receive payment for 4 months and then a monthly payment there after? We will have been in production 6 months next week and Continental says D.O.s being sent out Monday. Thanks, Mike
michael—It has been my experience that the first check arrives one or two months after the DO. you are right, the first check usually is for the total months of production minus two.
I just went thru this, on two wells, with XTO. I had to contact them to get D.O.s, but was getting paid anyway. However, I did not get paid within the 6 month time frame, so I asked for the penalty fee.
One of the wells was about 10 months late, I got 12% interest from the first month. The second well was 19 months late, and again it is 12% from the start. I used the date from the Completion report to determine if we both agreed.
It could take a couple of month to get the check, it will not be Direct Deposited, and you need to keep on them.
I’ve done several ROW easements with Devon, including 4", in both Blaine and Canadian counties, but I haven’t seen them try this trick, and I own both surface and some minerals. BTW, the going rate for Devon was $180/rod as of April. However, they typically want to allocate $165 for the landowner and $15/rod for the tenant. I’d be interested in knowing what your offer is. They seem to play hardball pretty well.
In some situations, depending on location, they can just move right across the road or to the next landowner if they can’t come to an agreement with you.
They are offering $180.00, however my neighbors one mile to the south received $200.00, within the last thirty days. The last ROW we received on this property was for $190.00 approx. three to six months ago. They are also coming on the inside of the previous ROW and causing much more land to be taken if they ever wanted to come in and drill more wells as the current well is not on our property.
Try this BLM Link, it might be easier to read
Has anyone recently had a 4" pipeline placed on them? If so, what were they offering a rod? Devon is wanting to come across one of our properties and they are offering us a “mineral” owners price. In my mind it shouldn’t matter whether we own the minerals or not, the surface is separate, however they are wanting to pay us $20.00 a rod less because we own minerals. Has anyone ever came across this? As always thanks!
How long is a rod, 16 1/2 feet?
Yes, 16.5 feet.
Tim, We’re in the S.E Cana I hope ours is going south!