Camino has several cases with orders for section 3. 201807197, 201807081, 80, 78. 201903724 pooling is pending. You can look them up on the OCC OAP site. Nothing pending on section 4 at the moment. Six wells are drilling in section 2 with a surface location in 35.
Usually old wells are not used for horizontal drilling. It is possible, but not usually done. The old wells may not be the right size casing for the needs of the deeper holes. Just depends. Since all of the wells in 4 are currently online, not sure that operator would want to shut them in and lose the revenue. They look pretty piddly, so they might. Most operators drill new wells with newer technology. If the same operator owns the vertical wells and then they want to kick off and extend for horizontals, that is more likely than a new operator coming in. They might not like to use someone else’s wells-liability issue. Also, the placement of those current wells is not optimal for horizontal drilling.
Do you know which wells? Sheridan has my lease and I have an old ell on 10-5N-5W, Camino is also drilling a horizontal but the well itself will not be on 10-5N-5W.
There are a couple of notices in today’s paper about Camino and section’s 4 & 9 - 5N-5W… Usually, mineral owners will get the applications in the mail before they appear in the newspaper. Well Location Exception - Cause CD No. 201904170 and Exception to OAC … - Cause CD No. 201904182.
Don, after looking up the above cause numbers I still have no idea what this means. The last information I have is that the horizontal well would include Section 3 and Section 10 of 5N-5W and the actual well would be placed in Section 4. Has this changed? Thanks
I’ve got acreage in Section 9 5N 5W. I leased mine at 1/4 royalty in 2018. My cousins are getting lease letters dated August 16 from Nichols Energy as agent for Camino Natural Resources, LLC.
Terms look pretty attractive. Have you heard anything else about what’s going on there?
Camino had quite a few cases pending at the OCC for that section. Many of them were dismissed in June. However, they have filed new ones. You should have been getting all of the notices. If you are not, then make sure your name and address are correctly filed with the county clerk in Grady and affiliated with your acreage. Also contact the attorney for Camino to get on the mailing list.
CAMINO NATURAL RESOURCES, L.L.C.
1401 17TH STREET, STE. 1000 DENVER, COLORADO 80202
Contact Name: GRAYSON BARNES Contact Phone: 918-382-8686
A question for the site’s mavins:
Why would Camino file a PERMIT TO DRILL for a Straight Hole Stratigraphic Test and note that their intent is to set surface casing only and file an amended Form 1000 changing the type of drill operation at a later date? Are they trying to get some paperwork started in the hopes of fast-tracking the drilling of a production well? Other?
They may be doing that in order to comply with a pooling order and the time frame of 180 days or 365 days “to drill”. They may not have a big rig available.
My lease has a NO Production cost clause; however, I have received a “Division Order” which has a paragraph which specifies they will DEDUCT production costs for ( Transportation, compression, dehydration and treatment). Looks like another try at reducing the mineral owners revenue. Should I just mark through the paragraph? Maybe with a note to reference the lease?
First, check you lease and see if it is really a no deduction lease. Some of them have those words, but it you read if, they have a “however…” which totally negates it.
I prefer the NADOA form which states that a Division Order will not change the terms of the lease. I replace the company one with the NADOA one. Also, you do not have to put your SS# on the form. You do need to give them a W-9 with it on it so they don’t take federal taxes.