Liz, why do you want it smaller? Unless you own the whole section how do you know your part will get drilled?
This is what I am trying to find out. I think with my limited knowledge it would benefit the mineral owner.
Liz, the majority of wells being drilled in this part of the country are horizontal and the longer the lateral wellbore the more it should produce. In almost all cases these wells are drilled on 640 acre spacing. Everyone who owns within the 640 unit gets paid royalties and multiple wells can be drilled in that space. If the spacing was say 80 acres there would probably be only one well drilled and only the owners within that 80 ac would be paid. Also I doubt if you would have any luck protesting the spacing unless you control a lot of land.
Liz, go over to the Lincoln forum where we outlined some answers for you.
Does anyone know if there are any plans to drill in Blaine County Sections 31-15-11 or 24-15-11? We leased them in December of 2013. Thank you.
I posted by SCOOP wells list over on the Woodford shale forum
Please help. Mom owns 8 acreas of minerals @ 32T 18N 6W in Kingfisher OK and have been made an offer to sell. To our knowledge, there has not been any drilling in this area for the past 7 years (as this is when we inheritated the minerals) as we have never rec'd a check. Do any of you know if there will be drilling started in the near future and would you suggest selling or leasing. Appreciate any help you can give as I am not clear in this at all. Thanks!
Gail. You can go to oklahoma corporation web site and enter in sections in your range and township to search each section for recent and past drilling activity. You have to do individual searches by section. I have royalty west in Dewey county. They drilled our well in 2011. Activity has slowed some since a lot of leases are tied up with wells but they can produce up to 6-8 wells pr section with horizontal drilling. I would not get in a hurry about selling. We had several offers but I refused to sell. I have 5 acres in Lincoln county that had not been drilled on for years but they drilled much deeper last year and went horizontal. My five acres generate about $130 a month from just natural gas and again they can drill more wells.
Thanks Larry Trook. Was a little apprehensive with the gentleman that called as he was wanting to (Wrap) the deal up then.
Gail, I can look it up for you when I get back to my computer. Hey Larry, long time!
Thank you Michael Hutchison!!
Gail, that township is starting to heat up in 2014. An offer to buy is always a clue that something is happening. I would not sell at this time because those first offers are always very low and just trolling for unsuspecting folks. The horizontal drilling trend is opening up areas that have been dormant for years. Hold on for a while and see what happens. Get caught up on the forum reading for the last few months. Gastar and Husky are the players in here, so you might want to check out their investor presentations. Mississippian, Woodford and Hunton are the reservoirs. Good things are coming!
Thanks M Barnes!
Never mind.
Gail, you might want to go over to the Kingfisher forum because most of the discussions about that county are there. Michael is a great source of info.
Has anybody done business with ProMinerals Partners?
My lease states "the over-riding royalty interest reserved herby shall be free and clear of all costs of exploration, drilling, producing, separating, treating, marketing taxes, but shall bear its proportionate part of al production, severance or other similar taxes." These items are being deducted on my checks: processing, gathering, transportation, and fuel. Are these part of the post production costs that I should be bearing?
If your lease said no deductions, then you should not have any taken out. If you did not have that clause in there, then they will take it out. Production and severance taxes are normal unless you write them out as well but usually only massive acreage owners can get those taken off. You may have to start fussing….
Thanks, Martha, that is what I thought. It would seem that processing, gathering, transportation and fuel would be considered part of the production expense. I think I will start fussing!
The basic problem with most of these discrepancies is that the revenue department does not talk to the legal department. The accounting software is set to take out deductions, so if the mineral owner doesn't catch it and report it to the revenue guys, they are not going to fix it on their own. Be sure you have a copy of the lease when you start fussing! Get your owner number and the property number off of the DO or the stub of the royalty check. Keep track of everything you send them. You need a paper trail. Send certified. This is when email is not necessarily a good idea. You can start with one to the revenue department to see who you should contact, but keep a copy of that email. Then go with paper from there.