My g ma has been getting checks from Woodward iodine corp for a very long time on are land she has passed away 6 years ago and gets checks for a very very low amount $15 and they get around average $100,000 gross per month and dont even net over $1.50 feel like we are being ripped of or tooken advantage of or some type of minimum payment and should be payed way way more its not worth letting them do ttt
What is her royalty decimal on the check? Probably 0.000X? Is the last check $15 of $100,000 or are you saying the wells used to make $100,000/month gross but now she’s only getting $1.50?
A few things:
- Wells decline quite sharply over time. What part of Woodward county? I can look at the wells to let you know how much of that is production decline
- Commodity pricing has gone down significantly since 6 years ago. This would reduce checks.
- if her royalty decimal is 0.00015 or something, this would equate to her owning probably in the ballpark of 1 net mineral acre. Sometimes people of that generation with such a low net interest have what’s called an overriding royalty interest, usually from someone in the family being in the business and getting paid partially through an override. These are usually pretty small.
- She also could be one of 10 kids, who’s mom also was one of 10 kids, and great-grandpa’s 80-acre plot of land is now divided 100 ways.
- the company operating the wells and cutting the checks usually spend $5000-$10000/month per well to operate the wells, which you don’t have to pay at all. Only working interest owners pay these costs.
- She could also be subject to paying processing fees, which can be upwards of $1/mmbtu for gas or $5/bbl for oil. This is the cost to get the oil/gas from the wellhead to the market, and depends on the lease on who shares in paying it.
- There’s always a chance there’s some hiccup in title that’s causing her to get underpaid. It’s good to have all your documents in order and know how the payment decimal is calculated.
Feel free to post more specific questions and we’re more than happy to help work you through them!
What is the section-township-range? What is the royalty on the lease? What is her name? I might be able to tell you nma.
I hope i gave the right info for you She has passed away about 7 years ago dont no nothing about this but I will be the property owner my mom inherited feel like they took advantage of us and feel we are intitled to so much more or its not worth $16 to have on property dont no what the contract says but thanks for helping name is leota l hall royalty 33975 wic312-l wic30g-l
I’m sorry for the loss of your grandmother. Yes, all of this can get very confusing and complicated. Is your mother Laura Becknel? I tried tracing the minerals from Leota Hall but online records only go back to 1994 for Woodward County. For the tracts of land I found, I’m not actually seeing any wells producing at all. Do you have the name of the wells on the checks? If the wells names are also “Woodward Iodine” I have a theory.
She’s could be getting paid royalties on Iodine production (like the iodine in salt), rather than oil and gas. Due to how the field is set up, her original acreage might have been pooled into a very large group to cover the whole field. Each box in this map below is ~640 acres. There could be over 15,000 acres in the field, and all the income generated from the field is being reported on the check. She’d have probably 80 acres at most of all this from what I’m seeing, which would give her a very small % interest to begin with. Then throw on whatever the normal royalty was for iodine at the time (we’ll just assume 1/8th like oil) and you get 0.0006 royalty interest (as in, 0.0006 x gross revenue = net revenue).
Interesting…thanks for sharing the iodine info for Woodward county.
If you do a search on iodine production in Oklahoma, it is very interesting. Here is a recent article.
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Thank you very much for helping me out and thanks for all the info it has helped and yes Laura becknel is my mom who is now the new royalty owner by inheritance and it say wic#3 12- iodine and other is wic#30 gas and has by volume and has gross amount with net
@M_Barnes. Thanks for the article! Oklahoma was in need of some wins!
@Joshua_Becknel ok then yes, my theory is holding water. The WIC#30 is an injection well, andI can’t find a 3 12- exactly but there’s a 31 that’s active still. They may have a special internal naming scheme for check stubs. Either way, she’s being paid for production from wells very far away, meaning there is a large pool of acreage diluting the payments.
Based on well names and activity, the pool outline might look like below:
Woodward County Records for Last Name Becknel:
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