Diane, Stephens Co is drilling in 04-16N-04W which is just west of you. They may be moving northeast towards 17N-03W where formations are naturally fractured making it easier to extract the oil and gas. There are some very good wells in Logan and many more wells to be drilled and that’s why I lease instead of selling.
Diane, The OCC weekly docket shows OK Energy Acquisitions filed for horizontal spacing in Section 29-16N-03W to be heard 03/30 CD 201500069. Increased drilling means they don’t believe the price of oil will stay low for long.
Thank you for the information Martha.
Robert, Diane Davis asked a 16N-3W question March 24th (see below). Township 17N Range 03W is naturally higher fractured than some surrounding areas, so it is easier for oil and gas to be extracted. Also, these shale plays encompass hundreds of townships and ranges at once, so you have to look much further out than17N-03W. Oil prices are keeping offers low for right now and only the best areas are being drilled.
Again, thanks Richard. Meanwhile it looks like it’s a waiting game.
Could someone update me on Logan Section 14- 17N-3W. Received lease offer from Lowry Land on small interest there. A Pooling Order for Slawson expired with no action one year ago. Current Lease offer is lower than the options prescribed in the Pooling Order issued April 2013. Would appreciate any information on what may be simmering there.
Robert all I can tell you is that Osage has completed some nice wells is sections 7,9,18,19 in 17N-2W which are about 2or 3 miles east of your location. You could check out the final pooling orders for sections 7 and 18 in 17N-2w to see current lease prices. you might wait and see if anything happens and get pooled and receive 1/4 royalty with no bonus as we received for a small parcel in18-17N-2W.
Speaking of 17N-3W, I received notice of a Modification of Pooling Order NO. 610907 concerning Sect 36 and that a hearing before the OCC was to take place on Mar 2, 2015. To date I’ve heard nothing concerning this hearing and I’m wondering if there is a website where I might learn more of such action and/or any further specific drilling activity in this area.
Thanks Richard for this help now and for the future!
Carl go to the Okla. Corp. Comm. website and go to the column conducting business and click on imaged documents. Once you get to the search document page click on OAP CASE AND ORDER FILES, pot your order number in the order box click and you will be able to read the final order for your section for pooling. This should be the last step before the file for a drilling permit
Carl click in the number in the case box 201500688 and you will be able to see and read this current modification to the order number you have that covered a well drilled in 2013.
In-as-much as I be retarded now I am no longer doin’ me taxes, but let the wife have hr Blockhead do them, but I thought oil revs did not come under personal income, and even though TX, Florida and TN do not have personal income taxes, oil revs are not reported as that? I never really thought about it, but am curious enough to look.
Sir Ron Von, Royalty income is not ordinary income or passive income, but it is reported on your individual 1040 Schedule E. Your lessee will provide you with IRS Form 1099-MISC, reporting the royalties it paid you in the previous year. If you have no working interest in the oil well, report your royalty income on Schedule E and include it on Form 1040. If you received a bonus for signing an oil lease, report it as rent on Schedule E. Your Schedule E income is normally not subject to self-employment tax. However, you are subject to self-employment tax if you have a working interest in the oil well. In this case, report your royalties on Schedule C.
If the Blockhead does not obtain your signature on a Federal Return with a Schedule E and an Oklahoma Tax Return reporting your Logan County Royalties, you can expect an IRS Round head seeking to expose your fanny.
Sir Ron Von, Oklahoma mineral rights are real property, and once a Oklahoma mineral owner’s oil and gas is extracted from the ground it becomes personal property subject to personal income taxation.
But while oil or gas remains in the ground, their ownership is, in fact, is governed by two legal theories or approaches, depending on the state in which property is located:
Yeh I know it is income, but I did not think it is personal income and it is not reported on, what is it, line 7 I think, as ordinary income and taxed at that rate. It is surprising to me that mineral owners have not lobbied for special rates and thus lines other than line 7 reporting It seems to me to be akin to our big, fat pigs when I was a kid, they would go around squeeling but they never seemed to do anything to resolve the situation? Mineral owners just do not appear to have it all together yet, they just don’t seem to understand that no one can fight city hall alone. You got to … come together — like Sir Paul sang.
Thank You Martha, that is about what I thought it is, but I have not done our taxes for 4 years now, so had no reason to know it.
Sir John.
Was it John Lennon? Oh well but John was not a Sir, the queen only knighted Paul MacArtney and Mick Jagger. LOL
Ronald, Usually the oil company will take out taxes for Okla. Income tax. And you will get a 1099 forum. In OK you only pay tax when the oil/gas is sold. In tx you will pay taxes on minerals only aftet it starts producting.