Richard,
That looks acceptable to me and very much like most I have seen. I’m not a professional. I’m sure there are variations that may be more desirable but the oil company may not accept them.
Richard,
Regarding the depth clause, you should definitely change the wording from “deepest formation penetrated” to “deepest formation produced …”
In the past, this has been a classic problem with depth clauses, especially in vertical wells. An oil company would drill a deep vertical hole through all possible formations, then produce from a promising shallow formation; the “penetrated” wording would then hold ALL formations. Alternately, the “producing” wording would only hold it from the produced formation to the surface, leaving the deeper formations available for new leasing.
There should also be a DATE at which time you could lease the deeper formations. Tie it to the orginal lease time frame of 3 years or whatever the period of the orginal lease is.
Thank you Rick and Lynden. I believe that will help! Sorry, I am still figuring out how they cross back and forth, etc. Now I see leases like sec. 13 and 24 are leased because they are right next to each other…The picture is getting so much bigger…thanks as always.
The property descriptions are not county dependent. Look at some of the maps that Lynden linked. 1N-3W is North of 2N-3W. 3N-3W is North of 2N-3W. 3N-4W is West of 3N-3W. The county lines have no impact on the PLSS legal descriptions.
The reason I was pointing out where 1S-3W was to allow you to have a reference on the map I linked below. It is easy to spot the NW corner of Carter county in the maps to see where your interest is.
Rick, Pertaining to Sec. 28 & 33 3N 4W that I leased to Energy Lease Account LLC on 1/6/2011 the Depth Clause states this as follows.
In the event this lease is extended by commercial production beyond its
primary term, then at the expiration of the primary term this lease shall
terminate as to all depths located one hundred feet [100] below the stratigraphic equivalent of the base of the deepest formation penetrated
in the well or wells located on the leased premises, or land spaced or pooled therewith. In the event Lessee shall have commenced the drilling
of a well, pursuant to the terms of this lease, within the primary term, this provision shall not take effect until such well is completed.
Would this Depth Clause be acceptable to you or does it leave much to be desired.
Thank you Rick, I feel better now. Judging from what you all have been saying about leases I thought I might have been snookered.
Linda, If and when these 2 sections are drilled they will probably be held by production for the rest of my tenure, thus denying me the opportunity
to attempt deciphering the text of a later lease whether Splained in English or not. Thanks
The news lady in this video said after telling about Continental’s new find in Oklahoma that they will continue to have their main focus on the Bakken In North Dakota and Montana. I listened to the whole investor’s conference and I didn’t hear them say that. I heard them say that “the Scoop” would compete with the Bakken and they were starting a massive drilling project there. Maybe I missed what she was talking about but I don’t think so. Maybe I need to re~listen! (when I have another 5 or 6 hours to listen to it!) The video on this article is short.
http://seekingalpha.com/article/922161-betting-on-the-biggest-produ…
Daniel, JW and Linda, Thanks for your input. I have nothing to contribute
due to my lack of knowledge of the oil business, but if you all keep squeezing out your information I will soak it up like a sponge that has never been exposed to water. Thanks again
Mike,
That is great. What was the last month reported?
Rick and Tica,
OTC gave me 3 months production data over the phone no charge.
Michael, are those three months that were not on your first statement? And that is the OK Tax commission, right?
It was before I got my first check. At the time the well had been producing about 6 months but all they had reported was Feb, March and April. I found the phone number on the OTC website, it’s the Gross Production Dept.
My wife has a mineral interest in Sec.1 3N 4W . How would she learn the
acreage she has. She draws a small check once in awhile from Marathon
and Oneok for gas? Hope someone can explain the process for her.
The most accurate way would be a title search. But that might prove difficult and/or expensive.
Do you have any supporting documentation? Division orders, leases, deeds? All might offer some clues that might give a pretty good guess when compared with the check stubs and well data.
With the well name, county, and section you can usually find the unit size at the OCC site. The lease will have the Royalty interest percentage. From there you can calculate it. The Division order may have it listed.
Of course most of the above is only as accurate the source of the info is.
If you think the well will be a small or dry well take the bonus and 3/16.
If you think the well will be a ‘good’ ask for 1/5 royalty and no bonus, you will come out ahead. How soon, the bigger the well the soon you will come out ahead.
Thanks, Rick and Ron. Don’t have any documents but will work on it.
What she has probably wouldn’t be enough to wad a shotgun anyway.
The check will have the your decimal interest for each track. Section 1 is held by production in the Purdy Hart Sand Unit.
I’M A NEWBIE TO THIS SITE, SO I DON’T KNOW IF MY QUESTION BELONGS AS A COMMENT OR NEW DISCUSSION. I HAVE MINERAL RIGHTS IN SEC 29 & 30, 2N, 2W. DOES ANYONE KNOW WHAT MIGHT BE A REASONABLE LEASE BONUS? I HAVE BEEN OFFERED $300/ACRE + 3/16TH LEASE OR $1000/ACRE SALE. HOW CLOSE ARE MY MINERALS TO SEC30, 3N, 4W? IS IT TRUE THAT BONUS PAYMENTS ARE TAXED AS REGULAR INCOME AND MINERAL SALES ARE TAX AS LONG-TERM CAPITAL GAINS? RESPONSES TO ANY OF THESE QUESTIONS WOULD BE APPRECIATED.
Hutch, I have interest in sec 28 &33 3N 4W. Got letter that Newfield application for pooling in 28 had been continued to Oct 29-2012. Don’t know why but what does “drill a multi-unit with 28” mean?