I signed a lease with Okie Energy this past November. They said they had 45 days to do their title work and get a check to me. Those days have come and gone and when I called to inquire they said they have been busy and needed more time. I have not dealt with this before and am wondering what my options are?
It is not. When I talked to the guy he says it is the standard number of days in which to close.
The McClain County Clerk's Office closed the Tuesday before Thanksgiving and just reopened this week. There has been a delay for all companies needing to verify title due to this.
Thanks Brent. That would explain the delay.
Does anyone know if there is any laws or rules for how long before oil companies have to pay out royalties once they start producing.
They are to begin paying 6 months from date of first production.
Six months from date of first sales. If longer the operator owes you back revenue + 12%.
Thank you Tom and Debbie, to my understanding they started production the first part of July of 17, how can I confirm that?
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Larry - If it is an oil well, first sales occur when the purchaser picks up the first load of oil. The acronym is "dofs". That may, or may not, be the first day oil started flowing into the tanks. The acronym is "dofp".
Gas is different because first sales occur when gas starts flowing into the pipeline.
Tom Moore/ Debbie Downey, just got a e-mail from Casillas Petroleum saying that division orders have been sent. They also stated that their DO analyst said that my interest is in suspense. Can you tell me what they are talking about. Thank you in advance for any help you can give me
Larry,
Saying the title is in suspense is a way to only allow 6% six months after first sales. Contact their DO analyst and inquire what hoop they want you to jump through. They have to tell you what clouds the title.
Any thought on what a fair price would be for a 3-year, 3/16th lease on minerals in 5n-3w? (More specifically, 50 net mineral acres in sec. 2-5n-3w.) These minerals are open and would like to get them leased.
I would suggest you not consider selling any mineral rights in McClain right now. Lots of leasing and drilling going on there. Hang tight if you can!
Check the leasing bonus in McClain. Some really high ones!
Excellent advice Sharon Miller--hang tight.
Rick - I provided some information under discussion forum above. Hope it helps.
What is the going rate for water well and drilling site. I was offered 10,000 for the site and road and 2000 for unlimited water from the well they might drill. It is primo land worth over 10,000/acre and I thought they paid by the gallon or the barrel for water. Also only 40/rod for pipeline. I feel like these numbers are very low. Anybody advise of good counter. I am thinking 20,000 per acre, 200/rod and 3/barrel for water.
I think water is like .25-.50 cants a barrel. I would try to lease them the land.
lease at what rate? A well site will take up 5 acres and the land is worth a hell of a lot more than 2000/acre. The lease for the minerals is at an acceptable amount. It is just the surface I am concerned with.