I have an OGL extension for 31-1N-1W for 2 years starting 12/21/19. Should I ask for a new OGL before sending in the Division Order? I’d think the OGL has expired (book 2283, page 129). I don’t have a more recent OGL for 31-1N-1W.
You may have to contact the operator and do some inquiry. Continental Resources pooled respondents with an order dated Nov 22, 2021. You would not have been pooled since your lease did not expire until 12/21/2021. (Book 2145 page 781)
$750 1/8, $650 3/16, $500 1/5. or $0 1/4 were the options.
Contact the Division Order analyst noted at the top of the Division Order and tell them that your lease was expired as of Dec 21, 2021 and the well was not spud until January 20, 2022, so you consider yourself unleased. If it were me, I would not sign the same lease as you had before since it has some unfavorable clauses for you-especially regarding post production charges. You either want to be pooled at 1/4th or 1/5th. (I take the highest royalty in most cases). See what they say. You may need an attorney.
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Thank you! I appreciate your expertise in these matters!
A Continental Resources Landman advised: “I was forwarded the below message you left with our owner relations group. Your lease was scheduled to expire on 12/21/21. CLR began construction on this well on 11/26/21 and continuously conducted operations through spud on 1/20/22, which perpetuated your lease past its primary term. It is now held by production.”
Sounds like that is the answer for your particular case.
A note to anyone else who is readying this topic, many leases have a “commencement of drilling” clause that is very specific that a rig must be on location and actually drilling… which would have prevented this sort of situation and allowed a better lease to have been negotiated.
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