I just received a Division Order from CP Energy that reverences the well Karrenbrock #1 and the operator as Rocky Roads Operating. I have no record of having leased this section and none of these names sound familiar to me. Any information or advice would be greatly appreciated.
D. Rolf Hill
The Karrenbrock was one of four wells drilled in the mid-seventies so the lease would have been taken back then. The other wells were Mueggenborg, Bamberg and Zum Mallen. The Zum Mallen has been plugged. Are you familiar with these wells? It appears the Karrenbrock has not produced for several years. Rocky Roads took over as operator late in 2019. It looks like they are re-establishing production, and they are having the purchaser, CP Energy, distribute revenue. This is why CP sent the DO. If you are receiving revenue from the Mueggenborg or Bamberg you would still be subject to the original lease. If you are not receiving revenue from those wells your minerals might not be leased.
Thank you soonerpe. I am not familiar with the other three wells you mentioned and don’t have any recollection of receiving payments on the Karrenbrock. I have owned the rights for about 20 years so I am not familiar with a lease that may have been signed in the 70s. I called CP and they told me that I had to contact the operator. I cannot find a telephone number for Rocky Roads and CP only had an email. The email address suggests that CPs contact is a corporate restructuring firm. Any suggestion on getting in contact with Rocky Roads and/or what to do with the Division Order would be greatly appreciated. Thank you! Rolf
When in doubt, execute the division order, striking what is basically a warranty clause(the portion that says you agree to pay back that which is not yours), send it in and take their money.
Rolf, Did you acquire your rights through inheritance? I noticed that three Hill’s (Kenneth, Melvin and Alva) were mentioned in a mid-70’s pooling. I have attached a document that lists a phone number for Rocky Roads.Rocky Roads.pdf (478.3 KB)
soonerpe. Another thank you for your help! No, I purchased them from another party with no relation and a different last name. Regarding the advice above (not from you), I am not sure I understand the logic. I know that I own the acreage, I am just not sure that a current lease exists. I am hesitant to sign a DO and “take their money” if I can negotiate a lease that pays me more than they are currently saying I am entitled to.
Since my first post on this topic I was able to locate that I was paid on the Karrenbrock back in 2011, but I don’t see anything since then. I am guessing that locating a lease signed in the 1970s to look at a shut in clause is not the easiest thing to do. Any thought on this? Thank you again.
Are you receiving royalties from the horizontal well (Wheeler) drilled by Newfield? Did you sign a lease with Newfield?
Mr. Hill: My logic is that a Division Order does change the terms of any oil and gas lease so there is no harm in signing one if you are unsure of the status of your minerals. Your interest is in the SE/4, purportedly 3.75 net acres that you acquired from Birchtree Trust & Double B Investments. The Karrenbrock well was drilled and completed back in May, 1978. Your interest was leased many years before you acquired the minerals so your interest is subject to the old OGL(there were 7 OGLs for the SE4). Newfield acquired these 7 OGLs via Assignments so I am quite confident your interest is HBP by the Karrenbrock well. You should also have a DO from Newfield for the Wheeler well that was drilled in 2017. You were named on Newfield’s Spacing and Pooling (Curative) applications. Having done this for 35+ years and knowing what I know about your interest, I would sign the DO and take their money. Good Luck.
Soonerpe. No and no. Thank you again!
Todd- Thank you so much for your knowledge and thoughts on this. I was nervouse that signing a DO may override an existing (or not existing) lease. Thank you for clarifying that it does not. Are you able to tell when the Karrenbrock last produced? My records do not show that it is currently producing, but I may just not see it.
Attached is the last production I can find. Todd, did your research indicate why Rolf does not have an interest in the Newfield Wheeler well?Karrenbrock 1 Production.xlsx (11.6 KB)
Very smart. In Oklahoma does not require a sign a division order to get paid. Give them your W-9 and request information showing that the well was held by production or otherwise extended by a predecessor in title.
I believe he does have an interest in the NFX Wheeler well. He should notify NFX about his claim to an interest. The Karrenbrock was producing when NFX spud the Wheeler in 2016 so no doubt, Rolf is HBP.
Todd. Do you know from whom I would be receiving payment on the Wheeler well? Thanks, Rolf.
Newfield Exploration out of The Woodlands, TX. You should have paperwork from them as you were named on their Spacing & Pooling Applications. You were listed on the Pooling as Curative. Contact them to see why you haven’t been provided a Division Order. Go to their website and go to Owner Relations. That should get you an e-mail address.
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