My wife and I were willed the mineral rights to (Lot 1+2and S/2 NE 14 of Section 4 9N 26W) and (NE/4 Section 32 T9N R26W) in Beckam County Oklahoma. We have never actually been to Beckam County. We grew up in Pampa Texas and are somewhat familiar with the Oil and Gas business in Texas and Oklahoma. We moved to Colorado 1 year ago and haven't been keeping up with any news or developments in Beckam County for over a year now. My question is I don't know anything about "pooling" or how it might affect the mineral rights we own. If someone would like to explain it that would be great. Also if anyone knows where this property is located in Beckam County and could suggest where I could get some recent reliable information about these mineral rights and their approximate value it would be greatly appreciated.`
4-9n-26w was pooled in 2012. They drilled a vertical well that was a dry hole. So the pooling should not affect you now.
OK thanks Ron, is pooling similar to or connected with horizontal drilling in some way?
A pooling can apply to any kind of well.
Pooling happens when an operator(s) cannot get all of the owners to agree to lease either because they cannot agree to terms or cannot be found. The Ok Corp Commission has set up rules which allow an operator to go to court to pool the remaining lease holders after a majority have been leased. The company has to petition the court and tell them the amounts that have been offered in the nine section area centered on the section in question and telling which zones they plan to drill. The court then gives the unleased owners several options of bonus and royalties which are relevant to the area. You have about 20 days to decide what option to take. If you do not decide, then the highest bonus and lowest royalty are chosen for you. Most of us chose the highest royalty and the lowest bonus. If they cannot find an owner, the money is held by the operator for three years and then turned over to the state to unclaimed funds. The company then has 180 or 365 days to drill the well to the proposed zone(s). If the well is productive, same thing. Royalties are held for the "lost" owners for them to claim. A vertical or horizontal well can be pooled. If the well is dry, then the acreage is available for leasing again. Does that help?
I attached a township and range map of Beckham so you can locate your acreage.
You might want to read the investor relations presentation power points from Apache and Laredo Petroleum to get a feel for what is going on in the area.
1805-BeckhamCountyMap.pdf (410 KB)
M Barnes said:
Pooling happens when an operator(s) cannot get all of the owners to agree to lease either because they cannot agree to terms or cannot be found. The Ok Corp Commission has set up rules which allow an operator to go to court to pool the remaining lease holders after a majority have been leased. The company has to petition the court and tell them the amounts that have been offered in the nine section area centered on the section in question and telling which zones they plan to drill. The court then gives the unleased owners several options of bonus and royalties which are relevant to the area. You have about 20 days to decide what option to take. If you do not decide, then the highest bonus and lowest royalty are chosen for you. Most of us chose the highest royalty and the lowest bonus. If they cannot find an owner, the money is held by the operator for three years and then turned over to the state to unclaimed funds. The company then has 180 or 365 days to drill the well to the proposed zone(s). If the well is productive, same thing. Royalties are held for the "lost" owners for them to claim. A vertical or horizontal well can be pooled. If the well is dry, then the acreage is available for leasing again. Does that help?
I attached a township and range map of Beckham so you can locate your acreage.
You might want to read the investor relations presentation power points from Apache and Laredo Petroleum to get a feel for what is going on in the area.
Martin Howard said:Thank You M. Barnes. We have been busy with other projects and interests this summer but I greatly appreciate the information and will try to catch up.
Mark, thanks for that detailed reply to Martin Howards question, I too found it helpful, but it did give way to another question that I bet you can answer. How long does the state hold royalties for unfound holders?
Thank you in advance;
Mike Bennett
M Barnes said:
Pooling happens when an operator(s) cannot get all of the owners to agree to lease either because they cannot agree to terms or cannot be found. The Ok Corp Commission has set up rules which allow an operator to go to court to pool the remaining lease holders after a majority have been leased. The company has to petition the court and tell them the amounts that have been offered in the nine section area centered on the section in question and telling which zones they plan to drill. The court then gives the unleased owners several options of bonus and royalties which are relevant to the area. You have about 20 days to decide what option to take. If you do not decide, then the highest bonus and lowest royalty are chosen for you. Most of us chose the highest royalty and the lowest bonus. If they cannot find an owner, the money is held by the operator for three years and then turned over to the state to unclaimed funds. The company then has 180 or 365 days to drill the well to the proposed zone(s). If the well is productive, same thing. Royalties are held for the "lost" owners for them to claim. A vertical or horizontal well can be pooled. If the well is dry, then the acreage is available for leasing again. Does that help?
I attached a township and range map of Beckham so you can locate your acreage.
You might want to read the investor relations presentation power points from Apache and Laredo Petroleum to get a feel for what is going on in the area.