M_Barnes - You were correct on the well - TPR Richardson 1H-08. I just received Transfer Order/Verification Of Interest. I assume this to be a standard step. Will the OCC send production reports of everything to date or just production going forward? Still jumping thru the hoops - hopefully will smooth out soon. Again - your knowledge and help are amazing - Thanks
The OCC will not send production updates. The Transfer Order is just to put you in pay status. The operator will give the production on the statement that comes with the checks. You can find general production numbers for the last 12 months at the OK tax site. The oil is usually fairly close, but the gas numbers may not be due to a number of factors in how the amounts are calculated. The tax site is usually about four-five months behind. https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
I was going to recommend Kerry Caywood as well. He handled the probate and transfer for us on my mother and grandmother and was very good and timely.
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I was sick and didn’t get this posted in time for the dinner reservation (SORRY), but wanted you to know about the talks. You can come for those. Do call, so they have enough chairs.
NARO is hosting another town hall in the spring of 2020. Probably will be in Kingfisher. Keep your ears and eyes open. If any of you attend this one, please share on the forum about what you found useful! Always open for ideas about other topics for town halls and forums.
The Oklahoma State Chapter of NARO with the Grady County Mineral Owners and Surface Owners Association is hosting an event on November 12th at the Grady County Fairgrounds that we are encouraging mineral and royalty owners who are members and non-members of each association to participate in. We look forward to seeing you, your family, friends and neighbors at this event. Details are indicated below.
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This is what I tried to convey to you in an email. While I am not in possession of the leases, I know that my grandfather and mother, on the advice of my brother, a Mobil Land Man for 35 years, instructed them to sign leases crossing out any cost of production cost, and 1/8. Most of these leases have been held by production since the 70’s or 80’s.
Continental is charging, and back billing these charges now, even though these old leases have been held by production.
Continental is in a few lawsuits about post production charges. You did not post your section, township and range, so don’t know if you are part of one of the class action cases. You may need to contact an attorney.
My share of these wells is 1/9th what my grandfather had. I would not hire an attorney as the cost would be more than I could recover I expect. The wells are in 4N, 5W. The Sinclair 1-15-22XH, Plato 1-16H, Olson 1-22H, Painter 1-19H. Production on these wells reported to the state, and what my statement reflects seem to me to be very different. Add to that, gas price of .89 cents, a few months earlier over $4. I saw someone saying here that the contract may have expired and new contract in place. But it seems to fluctuate up and down monthly. Once again, I think you are so helpful to this site. I admire your willingness to help those of us that have no expertise in this arena. Thank You.
Gas volumes will hardly ever match what is reported to the state for lots of technical reasons which I won’t go into. Oil tends to match better.
The good news is that the Sinclair 1-15-22XH looks like a pretty good well and that section would hopefully have more wells in the future. They may not drill them until gas prices go up a bit, but money in the ground is good.
Same thing for Plate 1-16H. Also has room for more wells.
Olsen 1-22H has odd looking production. Looks like they are choking it back a bit. That is good as it is prolonging the life of it. Room for more wells. Section 27 to the south has multiple wells in full development mode.
Painter 1-19H also looks choked back. Sections 18 and 17 are in full development mode.
Your acreage is in a good spot for future development. Gas prices do move up and down due to demand. Each operator has its own contracts with pipeline companies which are quite confidential and the price on your check stub is “calculated”, not actual. (not so comforting, I know).
You might want to hunt for leases under your grandfather’s name if Continental will not give you a copy of them. The Grady online site is idocmarket.com.
If you can get copies of them-doesn’t cost much, then you can see if you have a gross production clause in there to combat their charges.
22 4N 5W is under development. We have minerals there.
I also have interest in Section 24, 4N 5W. Echo Operating was supposed to start a well by January 19, and report back to the CC for increased density. I can’t see that they ever drilled this well. My last post should have been 1/4 not 1/8 on royalty. Think one thing, type something else. As I understand it, Oklahoma at one time not long ago did not allow oil companies to charge royalty owners for post production cost. What year did this change, and what year did they start putting this clause in leases? I actually do have my lease on the Sinclair 1-15-22XH well. It had the option to participate and I declined. Chose option for $200. bonus and 1/4. I see nothing in this lease that mentions any post production clause. Returned 02-17-2015.
Oklahoma is still an implied covenant to market state. Companies started to put the clauses in their leases that allowed for post production charges a few years ago. Certain companies try to push the limits all the time until they are sued. Sometimes, you just have to send a copy of your lease with the “gross proceeds” marked and demand no post production charges.
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“Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, except water from wells of lessor”.
Martha,
The above is what is stated in my lease. I always thought this right to use was for only during the drilling phase. Does “operations” mean use is on-going? Is this what is considered production costs?
Personally, I strike that clause completely. In the old days, it was to use the gas for a stove or temporarily use the water. However, today, some of the operators are using the gas from wells to power their rigs, fracturing fleet engines and even in some cases using the gas (without paying the mineral owner) to manufacture electricity and sell it back to the grid. “Operations” can last decades. So I do not allow it in my leases.
Post production costs are the costs that get your product to market. They are mostly for gas, but I see companies charging for oil now. Examples are compression, dewatering, transportation, etc.
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Would love to hear feedback if you went to the town hall meeting put on by OK NARO on the 12th. I am writing an article for the OK NARO newsletter. What did you like? What did you wish was covered? What topics would you like to see in the future? Any invites that were helpful? Thanks!
Refracing of the Sawyer1 well in 23 07n06w results should be out, hopefully by the end of the month…Might be of interest to the future production of every Springer well in the Springboard. I don’t see any production figures yet.
Must be other refracs completed also in the Bakken…
Grady County Section 23 and 26, Township 8 North, Range 5 West, EOG stalling on division order–the Ted wells have been producing at least since last quarter of 2018. I have called EOG twice on this, and am being told that my payment/division order paperwork is waiting on “title verification”. I think this is bogus because this acreage has been hbp for a long time, first by Sunoco and curretnly by Kilpatrick. Is there any way to get EOG to move forward on this, short of legal action?
Patience is a virtue. They will get you paid. Send them a letter requesting statutory 12% interest, certified so you know they got it.
Don, been very busy but getting quite few letters to purchase. Anything new in home section? 12-6N-7W
Don, Does this document change anything for 10 7n 7w?
Hi Jimbo… we still have no lease for section 12-6N-7W. We are at a stalemate on some of the language in the Exhibit A. Which is okay… We may just wait for pooling and push for a 1/4 royalty option, plus a bonus. 