My sister and I have inherited several acres in several sections across Dewey County that appear to be HBP, “Held By Production”. We do not participate in any royalties or bonuses. I was curious with the industry down turn and decreased drilling, if there would be an opportunity to recapture any acres that may have been shut down or capped. Is there anyone out there with knowledge or experience fighting for mineral owners…or could give direction on how to move forward doing that myself? Any help would be appreciated. Thanks. John
What exactly do you mean by “recapture any acres”? There are a lot of mineral companies out there that are working in the core areas while prices are low hoping for buying producing wells and maybe upside in the future from additional wells or new reservoir benches. If you want to buy more acres, you are competing with very sophisticated buyers with deep knowledge and capital backing.
If you are held by production, then why are you not receiving royalties? I can see not getting lease bonuses since your are HBP, but not sure about your royalties. Is someone else getting them under a legal agreement?
Thanks for the reply, yes, they production was sold by an agreement back in the 80’s and apparently it only reverts back to us if they stop producing. No, we don’t want to purchase any more acres but would like to have those acres back under our control…which apparently won’t happen unless those wells stop production. Maybe I’m not reading it correctly but we don’t have any income from those acres.
Yes, that can happen that someone gets the royalties until that particular lease runs out. The minerals belong to someone else.
Yes, thanks we knew that. Let me ask the question a different way…how or where would I go to find out if production has stopped in specific sections, townships and ranges that we still maintain the mineral ownership in…we just don’t own production in those acres. It appears the only way the production ownership could revert back to us is if the wells were shut down or production has ceased. Any thoughts on that?
You can watch production for free on the Oklahoma Tax site.
https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
For some reason, it tends to have most of the wells located by bottom hole location. Start there and if you have multi-section horizontals, then if you don’t find the production in the bottom hole section, work up the borehole.
The site tends to be about three-four months behind, so you may have to keep looking.
1 Like
Thanks, I’ll check that out.
This topic was automatically closed after 90 days. New replies are no longer allowed.