I like the one that goes “don’t worry we will figure out the surface damages later. We never have messed up a site”. I wonder how many fingers they have crossed when they say that!
Martha, that is not completely true. The operator is required to call other companies that have taken leases in the section before the pooling order is issued and obtain “value checks” to see what others have paid for lease bonuses in the section and offsetting sections. The landman from the operator then must testify as to what $ amount bonuses have been paid. Yes, the pooling order terms can be much lower, but not always.
I found that letter; It’s Blue Star on behalf of Devon and they propose to drill a +/-11,000’ Woodford Horizontal well in Section 2-20N-4W Payne Co. with a surface location in Section 3-20N-4W Payne Co. $400.00 plus 18.75%. I thought it was in Garfield Co… That’s how much attention I paid to it. This is the third mineral issue to have popped up in the last three years or so and we had no idea that we had them. There are not that many acres involved between 4 of us, but still.
Bob Garrett, how many acres do you have in 2-20N-4W? I recently leased to a third party for favorable terms. I’d much rather lease to smaller companies with betters terms and lease provisions. They seem much easier to work with.
Daniel, I can’t find my letter right now, but it seems like it’s either $300.00 OR $350.00 per acre, which seems to be the favorite starting point of most of these folks.
There will be many more wells drilled and they will last longer than you expect. Continuous petroleum accumulation is a hard concept to imagine, but it will sustain production for decades. Also, enhanced secondary oil recovery is becoming the norm, with new techniques being developed right now, so I will not lease for less than 1/4 and the best bonus possible. A darn good lease is a must have too.
Daniel, We are leasing for 1/4 in many different areas where the pooling orders are showing no more than 3/16ths. I’ve been told third parties do not have to participate in value checks unless they are bonded.
OCC Pooling orders will only take in to consideration what the operating company (Devon) has given for leases. Third party leases are not considered, so the pooling order does not reflect such.
I have been called by landmen getting ready for pooling hearings for information on interest I have leased and I am not bonded. I have been told that they don’t list leases that have been taken after the pooling application has been filed .