We have property in Blaine county and leased to Cimarex - and its getting a lot of play now It is section 8 15 N 12 West, Recently we were contacted by them and were told that there is a great deal of oil on our property but they needed the death certificate of my grandfather who left acreage to my mother who is now deceased as is my father. My grandfather was in Shawnee Oklahoma and died in 1931 in December but was buried in Oklahoma City in January of 1932. I found the mortuary and even an image of his stone at the place of his burial. I sent to OK for his death certificate and was told they could not find one. My grandfather owed a home in Shawnee and a business and he was in the 1931 census I found that information. He committed suicide as he was ruined in the Depression. My question is this if Cimarex already pays us royalties as we have signed leases with them as his heirs why do they say now they need his death certificate when they accepted our notarized copies as his heirs - and what happens if I cant get one from Oklahoma? Can anyone help?
I can give a bit of a reason why. Maybe one of the attorneys can give some direction for getting a death certificate. The title opinion that is done for leasing is not quite as rigorous as the one for the Division Order. Leasing money is small in the big scheme of things, but the royalty payments are in the millions, so have a new title opinion and require a high level of proof of heirship. If Cimarex has paid you royalties before, perhaps they can be approached again. I know that it is was very hard to get even simple death certificates in the last few months for me.
You may have to talk with an attorney. I know that there have been fires in some of the county offices many years ago and death certificates, birth certificates, marriage, etc. were lost. First you should check with relatives and find any old papers that you possibly can which might help you to build some kind of case, otherwise you might have to search all the country records to looks for deeds etc. The more papers or info you can get from family the less it will cost if you have to pay someone like an attorney, landman, etc.
Elaine: Did you send your request to the Department of Vital Statistics in Oklahoma City? They handle all birth/death certificates, not the counties where a person died.
Here are some thoughts. My guess is that the death certificate will not be enough for the company to begin paying royalties. Typically, the division order analyst will require that a probate be filed. A probate for your grandfather and mother can be handled in a single filing to reduce costs. The probate order will include a determination of death for your grandfather. The property will be divided according to the Wills or intestate succession. So if either or both did not have a Will it should not be a problem. This sounds like a matter that can be handled on a flat fee.
I am surprised that Oklahoma cannot locate a death certificate, is it possible that he died in another state. Perhaps while traveling?
My grandfather was born in Greece - he was listed in the 1930 census in OK as well as his four daughters two of which are alive - my mother and father are deceased I sent them the death certificates to Cimarex - there is one other sister who has died - and two that are living. He lived in Shawnee and owned a house and a business a cafe called the Busy Bee - he shot himself during the Depression I got a cause of death from the cemetary where he was buried Fairlawn Cemetery in Oklahoma city but it listed his date of death as 1/10/1932 but his gravestone lists the date of 1931. I think as there was no Greek Orthodox Church in Shawnee so my grandmother had him taken to OK city to be buried. I have a picture of his grave stone. He must have died then in December of 1931 and by the time they got to OK city it was the new year. If you can recommend a good attorney from OK city to help me get the death certificate or a landman I would be grateful if you know of any. thank you
Off chance, but you might also look on ancestry.com. You may need to get a real death certificate, but there is a wealth of info about newspapers, death notices, passage lists of boats, etc.
Yes i sent it though the Department of Vital Statistics - they said if I provided more information they would search once more for free.
I have gotten a lot of information from those sites they are terrific
I want to hire an attorney In OK to help me but I have no idea if its worth it - we never got checks more than 400 to 500 dollars in a year from leasing - now they say there is significant amount of oil. We have the usual contract with Cimarex for 3/16ths royalty which i assume is 18.75 percent - what do most wells pump a day - and how would I calculate say on 50 barrels a day being pumped what the royalty would be?
You may need an attorney to help with the death certificate, but let me explain what is going on for you about the production. The answer to your question is highly dependent upon the reservoir that your wells might be in. Blaine county has as many as five depending upon your area.
8-15N-12W
Cimarex drilled the Shepard BIA 1H-0805X in 2017. It had first sales as of 12/1/17. The reservoir is in the Mississippian age. As of February 2018, the well sold 11,382 bbls of oil or about 390 bbls per day. It also sold 39916 mcf of gas or about 1375 mcf (million cubic feet) per day. That will not last as the wells decline quickly. The tax site for OK is behind by many months, so that is the last posted production that I see there. The time frame for a well is that they are supposed to pay you six months from the date of first sales. During that five months, they have to find hundreds of mineral owners and make sure that they are the true owners so they everyone adds up to 100%.Those with clear title will get paid. Others have to wait until theirs is cleared up or “cured”. I have a couple of questions for you.
Was anyone in the family (your mom?) paid on the Spies #1 well already? If so, then Unit Petroleum was satisfied with the title and you may be able to use that in your favor. It was spaced at 640 acres, so they should have been paid on it. It has been online since 2004 but was plugged in 2011. If you newly inherited, that could be part of the problem is that they are trying to tie you to him with a clear title because Cimarex is a different company and they do not have Unit’s documents. The title opinion for leasing is not as rigorous as that for paying royalties since the money for leasing is minimal, but the royalties can be significant.
Back to your original question. I need to know how many net acres you own and then I can tell you how to calculate your royalty. The formula is this:
net acres/spaced acres x royalty x percent of perforations in your section.
In this case, section 5 of the well has 52.3355% and section 8 has 47.6645% which is on the OCC case 201700138 order 679781.
An example for 10 acres would be: 10/640 x .1875 x .476645%= 0.00139642. Each barrel of oil and mcf of gas would give you that decimal amount (minus any taxes and any post production costs if they are in your lease).
You are not losing this money. Cimarex is holding it for you until you can prove that you own it. Yes, it is worth it to get this cleared up. There is room for quite a few more wells and could be important for your family for many decades down the road. You may have to contact Unit to get the title records that they used to pay your mom for the Spies well. Let me know if you need a contact.
Math was not my strong point - we have 10 acres - Section in 8 - 15 North and 12 West based upon crude today how much do they normally take out for expense for each barrel and how would we expect to net on say 50 barrels a day? If you can recommend a lawyer or a landman I would appreciate it.
It is possible that your grandfather’s name is improperly indexed. As you know, unusual names are often misspelled. If the funeral home is still in business they may have the record. Obituaries are also helpful. Family bibles are admissible in court for family births, deaths, etc. Also church records are available.
Even the grave marker is helpful.
In Oklahoma a “summary probate” is a simple process for the client. Many times a summary probate will put the minerals into the name of the heirs within a few months. To qualify for a summary probate one of the following is needed: -the decedent resided outside of Oklahoma; -the decedent died 5 or more years; or -the estate in Oklahoma is valued at $200,000 or less.
I have probated multiple generations to clear up title. So you could probably handle this in one joint probate.
Your question is a bit difficult to answer because your well starts off high at 390 bbls / day and 1375 mcf per day, but drops off rather quickly over the first few months and then flattens out and stays low possibly for decades. If you have post production costs, then those can start low, but quickly escalate to 50% or more of your royalties eaten up. I do not know what they are on this well.