In this case election means choice, 1/8 royalty and the most cash 3/16 royalty and less cash 20% [1/5] royalty and even less or no cash and hopefully 1/4 with or without cash, probably without cash. It's a multiple choice question and I would pay attention because it will directly affect how much money you are going to make. If you think it's going to be a dry hole, take the 1/8 and most cash, the 3/16 offering is usually the most balanced for royalty and cash, in my opinion because it's what they want you to choose, then the higher royalty options that would pay most if the well was great. Good luck with your decision.
Teddie Carole Bruce said:
What do you mean when you say we should have 20 days after the order to "make election." What election? Thank you...
Ron McKenzie said:
The pooling was recommended, should take 1 to 3 weeks to issue the order. You should get it about three day after that . Have 20 days after the order date to make election.
Teddie If you have not leased you will need to make an election under the pooling . If you would like to send me a friend request I will give you my number if you would like .
Wow!!! Sounds like a gamble. I am sure not good at gambling! ;-) I have no idea if it will be a dry hole or not.... I wonder if one can go by how surrounding wells are doing. I heard they put up a well on the NW 1/4 of Section 23 in January. Have you heard what they expect from that well? Thanks for the information. I do appreciate it...
r w kennedy said:
In this case election means choice, 1/8 royalty and the most cash 3/16 royalty and less cash 20% [1/5] royalty and even less or no cash and hopefully 1/4 with or without cash, probably without cash. It's a multiple choice question and I would pay attention because it will directly affect how much money you are going to make. If you think it's going to be a dry hole, take the 1/8 and most cash, the 3/16 offering is usually the most balanced for royalty and cash, in my opinion because it's what they want you to choose, then the higher royalty options that would pay most if the well was great. Good luck with your decision.
Teddie Carole Bruce said:
What do you mean when you say we should have 20 days after the order to "make election." What election? Thank you...
Ron McKenzie said:
The pooling was recommended, should take 1 to 3 weeks to issue the order. You should get it about three day after that . Have 20 days after the order date to make election.
Teddie, if you don't make the choice, they will make one for you and they will pick 1/8 royalty and the most cash. This would be the least appealing choice to me because the 3/16 royalty usually seems to offer only slightly less cash up front but 50% more royalty so it's going to be more money if the well is successful. Possibly, significantly more money if more wells are drilled in the future because you will be locked in, in your election.
Nothing really saves you in the case of a bad well. If you received $100 per acre more and the well never produces, will you really cackle with glee that you outsmarted all those people who took the 3/16 option? I don't think you would, because you are a nice person, and it's a small enough amount that it will likely not make a lasting change in your life.
Unless you have alot of acres and a great well 3/16, 1/5 or 1/4 royalty may not mean a great deal to you either unless you save and invest it. I would at least avoid the 1/8 selection and give my minerals a better chance to work for me. Good luck with your decision.
Thanks! That is good advice... I was thinking that I preferred 'going for broke' so to speak. I don't have the money now and if I end up with nothing, I wouldn't have less than I have now.... And the little amount they offer won't make a difference in my income... :-) Thanks, again. You confirmed my line of thinking....and I do appreciate that...
r w kennedy said:
Teddie, if you don't make the choice, they will make one for you and they will pick 1/8 royalty and the most cash. This would be the least appealing choice to me because the 3/16 royalty usually seems to offer only slightly less cash up front but 50% more royalty so it's going to be more money if the well is successful. Possibly, significantly more money if more wells are drilled in the future because you will be locked in, in your election.
Nothing really saves you in the case of a bad well. If you received $100 per acre more and the well never produces, will you really cackle with glee that you outsmarted all those people who took the 3/16 option? I don't think you would, because you are a nice person, and it's a small enough amount that it will likely not make a lasting change in your life.
Unless you have alot of acres and a great well 3/16, 1/5 or 1/4 royalty may not mean a great deal to you either unless you save and invest it. I would at least avoid the 1/8 selection and give my minerals a better chance to work for me. Good luck with your decision.
Almost all of Charter Oak's pooling orders have only offered 1/8 or 3/16 RI. I think I have only seen a couple with a 1/5. I looked at many of their pooling orders before I leased to them earlier this year.
I would guess you will see $175-200 for 3/16 and $25-50 more for 1/8. You will also have the option to participate at about $10-15K per acre. I would elect the 3/16 and take the gamble it is a good well. I've heard good things about Charter Oak.
Thank you, Rick! That is good information. As a side.... you are related to the Dr. Howell who was a 'country doctor' in Washington, OK, about 70 years ago (my, how could it be that long ago?!) A Dr. Howell worked out of the back of the Drug Store in Washington and he delivered my sister and I at home. Our folks lived between Washington and Purcell... Couldn't help but ask... I do appreciate the advice... kinda helps me in making a decision. Again, I appreciate the info on Charter Oak... I had gotten some information that wasn't very favorable, so it is good to hear something positive about them. Was your lease in the NW 1/4 of Section 23?
Rick Howell said:
Almost all of Charter Oak's pooling orders have only offered 1/8 or 3/16 RI. I think I have only seen a couple with a 1/5. I looked at many of their pooling orders before I leased to them earlier this year.
I would guess you will see $175-200 for 3/16 and $25-50 more for 1/8. You will also have the option to participate at about $10-15K per acre. I would elect the 3/16 and take the gamble it is a good well. I've heard good things about Charter Oak.
My family and I worked with Capstone getting them all the family's names/addresses with regard to S23-T7N-R3W, for Charter Oak. We all opted not to sign leases. I received the pooling order; however, my sister's name was not on it, and it said they did not know my cousins' addresses...!!!! I called Charter Oak and they said they would talk with Capstone and get back to me..... Nothing yet. What are the implications regarding family with mineral interests not being notified of pooling? Also, I read the pooling order and have no clue what the heck it is saying. As a normal rule with pooling orders, does the recipient need to take any kind of action?
My granddad and grandmother had mineral rights in McClain County. When they passed, neither one's estate was probated. Now all their children have passed and 6 grandchildren are the heirs. Grandmother had a Will. Ownership of mineral interests has never been established. One landman told me he believed ownership could be established with Affidavits of Death and Heirship. I called an attorney in Purcell and he says we must do a Quiet Title (rather than Probate each person's estate). Four of the cousins are all for trying to get the mineral interest title straightened out once and for all - not pass the mess down to our Children and Grandkids... The attorney said it will cost $2,000 - $3,000. So it would appear it is in his favor to process a Quiet Title rather than me just filing the Affidavits of Heirship. Has anyone had a similar experience? If so, was a Quiet Title the only option?
Rick,
3/16th was pooled in 18 6N 4W Rosie Fappiano 1-18. I had mine leased at 1/4 and they did not catch it. Got the division order Friday and I had 1/4. only have 0.8317A. Can't get on occ site without regedit and starting over with fixvista. Could you privately or publicly email me the initial production.
Thanks,
Tom
Rick Howell said:
Almost all of Charter Oak's pooling orders have only offered 1/8 or 3/16 RI. I think I have only seen a couple with a 1/5. I looked at many of their pooling orders before I leased to them earlier this year.
I would guess you will see $175-200 for 3/16 and $25-50 more for 1/8. You will also have the option to participate at about $10-15K per acre. I would elect the 3/16 and take the gamble it is a good well. I've heard good things about Charter Oak.
They offered 1/4RI in that pooling. I'm glad to a 1/4 out there in some of Charter Oaks wells and glad to see you got in on it.
http://imaging.occeweb.com/AP/Orders/03033126.pdf
I don't see anything filed on it since the spud report almost a year ago. I would call the OCC and ask about it. They may need to be prodded to submit the completion report. I don't see production after Sept 2012 on some of their wells in McClain Co. Maybe there is a connection. I don't see anything on this one. 4-6 months behind is the norm.
Teddie,
I don't have a lot of faith in what a AoHs will do. I see too many instances of people being leased with them and later having to probate to receive payment. Some sort of Judicial action is needed to make the title marketable to ensure payment.
Teddie Carole Bruce said:
My granddad and grandmother had mineral rights in McClain County. When they passed, neither one's estate was probated. Now all their children have passed and 6 grandchildren are the heirs. Grandmother had a Will. Ownership of mineral interests has never been established. One landman told me he believed ownership could be established with Affidavits of Death and Heirship. I called an attorney in Purcell and he says we must do a Quiet Title (rather than Probate each person's estate). Four of the cousins are all for trying to get the mineral interest title straightened out once and for all - not pass the mess down to our Children and Grandkids... The attorney said it will cost $2,000 - $3,000. So it would appear it is in his favor to process a Quiet Title rather than me just filing the Affidavits of Heirship. Has anyone had a similar experience? If so, was a Quiet Title the only option?
Thanks, Rick... I just don't know anything about establishing mineral rights titles and thought perhaps the attorney was taking advantage..... I appreciate your comment. I feel better now.
Rick Howell said:
Teddie,
I don't have a lot of faith in what a AoHs will do. I see too many instances of people being leased with them and later having to probate to receive payment. Some sort of Judicial action is needed to make the title marketable to ensure payment.
Teddie Carole Bruce said:
My granddad and grandmother had mineral rights in McClain County. When they passed, neither one's estate was probated. Now all their children have passed and 6 grandchildren are the heirs. Grandmother had a Will. Ownership of mineral interests has never been established. One landman told me he believed ownership could be established with Affidavits of Death and Heirship. I called an attorney in Purcell and he says we must do a Quiet Title (rather than Probate each person's estate). Four of the cousins are all for trying to get the mineral interest title straightened out once and for all - not pass the mess down to our Children and Grandkids... The attorney said it will cost $2,000 - $3,000. So it would appear it is in his favor to process a Quiet Title rather than me just filing the Affidavits of Heirship. Has anyone had a similar experience? If so, was a Quiet Title the only option?