I would like to know if anyone knows if a mineral owner could put his own meter on the oil seperators for his well. This is common practice for different companies to have their own meters when there is a share of the product owned by two entities, but I dont know about mineral owners.
Robert, you have every right to be concerned. Canada had some issues with thin formations and big fracks, so they enforced temporary offset codes for 1st wells. OCC could be do the same, and they could be requiring dedicated tanks too. I’ve participated in older wells where the zones were co-mingled in the well bore, but we had to make sure we were not violating offsets and we had to have dedicated tanks. You are spot on with pumping out the water right away being a red flag. Here’s food for thought…I’m not sure about your area but I believe my area is a EOR recovery area (although OCC won’t admit it), and will probably be water flooded.
Yes, Michael Carey, Six family members including myself have received checks but only for a little more than half of what is owed us on the Branson 26-17-04 1HM well.
We were supposed to here from the oil company by the first week of this month about the remainder but no word yet and we’re more than a little impatient at this point.
If you’ve got ‘clear title’ and haven’t received anything yet you might consider consulting an attorney at this point and should expect a penalty on what is due!
Harley, re the Osage p. 14
What it probably means is that Osage is in Green as operator, Slawson in particular is in Blue as operator and the yellows are probably a mix of other operators besides Slawson or Osage. There are quite a few companies in here with different percentages of ownership in one another’s blocks. The OCC designated the operator for each one. I think I just saw where Slawson made an announcement about their properties in this area. You can find out on the OCC website who the operator is, but as a mineral owner, it doesn’t really matter all that much. You will get paid by the entity that buys the production. It can be one company buying the oil and gas or two separate companies. You do need to watch out that they are a “prudent operator”.
Kunal,
There is a new well permitted Nov 2013 for 15-19N-2W. Devon Alline 15-19N-2W #1WH a Woodford Horizontal well. It will be a couple of months before you hear anything about production.
M Barnes,
Thanks for the clarity about the bottom line. Buyers of the product are clearly on the Tax Commission site. The longer term issue is the stated strategy of Osage that the section are being "held by production’, Suggesting the further strategy to drill additional wells. In this future context, my broader curiosity is still valid.
As to the yellow sections in17N3W for example, 17 are Slawson operated and 3 are Stephens operated per Tax Commission web site. That is why the puzzle in my mind since the powerpoint slide distinguishes between Osage Operated [green] and Slawson operated [blue] and osage non-operated [yellow]. Of course we do not have the value of the voice over by the Presenter.
Harley, the general strategy of the shale horizontal plays has been to drill one well to hold a section, drill up their acreage and then come back and drill multiple wells during the production phase. Depends upon the thickness of the interval concerned, but I have seen from 2 wells to 10 wells so far in other counties.
There is lots of wheeling and dealing behind the scenes as to who drills, who operates, who has working interest percentages, etc. Sometimes, one company drills, then hands it over to another to operate. You can get a feel for the players by hunting down the OCC hearings for the well permit.
Thank you Martha. The OCC guy said this issue has been raised before. He wants to see the set up. I dont mean to sound bombastic, but I worked for years for BP in Prudhoe Bay Alaska for over 20 years and have seen all the malfunctions you can possibly have. Engineering out the problems before hand is the key. The fact they are not dedicating tanks and pumping out the water right away is a major red flag to me. I was also a BLM oil and gas inspector here in Oklahoma, so I know a outlaw operation when I see one.
I have not seen any production reports on anything in Logan County for thelongest time. Plenty in Payne County though.
Michael, OCC told me they are allowing delayed payment until after more wells in a unit start production. I still haven’t found the OCC rule on this yet. Contact OCC 405-521-2613 and ask them because it was that OCC department who gave me this info.
Martha Mc M.
I think the payment rules you are looking for is:
OK Statute 52-570.10. Under b, it states not later than 6 months after the date of first sale.
The phone # you gave is for OCC complaints & Information. Donna, Junior or Dana are all great giving information, answering question, looking up records, etc. They also have individual email that they can give a person.
Robert,
I have decided that one more clauses needs to be added to my future leases. I think a requirement for individual metering may be added. Would you be so kind to tell me the location of where this meter needs to be? I know the separate can be to small and sent lots of oil out with the water, but if the meter was before the separate, you would get oil, water and gas. So, what is the best location?
Mr. Barnes thanks for sending all info and i tried it and i saw an old info cant find info about spud dec 7.
Michael,
You should have gotten your first check 6 months after the first oil was sold. If you have a clear title, you can get 12% interest for the amount they owe you. But, if your oil company only send checks for over $100, and you don’t have many mineral acres it may be waiting for that amount before mailing a check. I knew my title was clear, so I left mine go for almost 6 months, was a real nice interest check.
Robert, More on meters. Frac sand can build up in the meter orifice causing errors as high as 3% and a potential lose of 180 bbls on a well producing 200 bbpd for 1 month, so it would be good to know how often they are checking the meters and if they are adjusting production rates according to errors. Combine the known errors with the oil skim you are witnessing and there could be even bigger production loses not in the mineral owners favor. In addition, the Brent price of oil is expected to average $100 and WTI to average $92 in 2014, so it would be good to know which price we will be given for our production if our oil is shipped over seas and purchased at the Brent price which is now considered the World’s oil price instead of the WTI price which is now the US price. I’ve also read that some oil/liquids may be shipped out of US, refined and brought back into US, so how’s that going to work for mineral owners? Also, does anyone know what price the Chinese agreed to pay for liquid hydrocarbons produced from wells that are part of the Devon/Sinopec agreement?
“EIA estimates U.S. total crude oil production averaged 7.5 million bbl/d in 2013, an increase of 1.0 million bbl/d from the previous year. Projected domestic crude oil production continues to increase to 8.5 million bbl/d in 2014 and 9.3 million bbl/d in 2015. The 2015 forecast would mark the highest annual average level of production since 1972.”
Phillip Beall just posted on Payne page: http://api.ning.com/files/oncLOIv1tO5Oece83qzTMRCmfrSBmSeWlqoQoCuqf…
This is why OCC told me they are gong to have a rule hearing on 1280 A spacing in 2014 and that CLR is pushing for no units. No units could be accomplished by “allowing producers to cross existing spacing units.”
Virginia, I’d say the sooner the better. I know of one little newspaper owner in OK who might help us, because we will need majority sending letters and contacting state reps. I’ll call him asap. Surface owners need to know how this will affect them too. North Dakota is the place mineral and surface owners can read about if they want to know what is getting ready to happen in OK. I have some ND articles and will post.
Tonya,
I would love to have a meeting explaining everything, but I live out of state. I have made several trips to OK for meeting and will do so again if the facts are giving.
J Layman,
I have sued oil companies in the past and have won my case, but like I said in a previous posting, it’s expensive. And I’m not proud that I had to sue, but sometimes it comes to that. You need professional documentation, lots of information that you have kept and can provide and a big bank account plus a couple years time. It doesn’t move fast and I’m afraid this multi unit is moving real fast before most of the mineral owners know what is taking place. It’s scary to me.
Kunal,
http://www.occpermit.com/WellBrowse/Home.aspx
http://www.occpermit.com/WellBrowse/Webforms/WellSearchResults.aspx
On the home page, type in 15 19N 02W and Logan in the slots. Hit Search. That will give you the wells. The well I quoted is on the second page. They are drilling two Alline wells from 15. You want the Alline 15-19N-2W. Hit the little magnifying glass icon. That takes you to the well page. Hit All Images and you will get them as far as the OCC has them digitized. The well was spud on Dec 7.
Martha McM,
The mineral owners will only get the WTI price, because we can not prove our oil is being sent overseas.
China has taken over lots of the wells, so they can pay whatever they want. Check what happen with Chesapeake/China in Woodward Co.
Oil companies have been taken more than their share for years. Look how Chesapeake figures their decimal point. How can you have 5 different decimal points on the same well/same owner, etc. DFW airport and Ft. Worth took them to court over this and won big time. Little people don’t have the resource to fight large oil companies. You are looking at least $100,000 or more just to get to court nowadays and if you don’t win, it’s a lot more than that. Mineral owners are getting the shaft and most are so happy to get their check they don’t care.