I just learned that I missed the deadline to elect a choice on a forced pooling order for S/2 Section 25, Township 1 South, Range 4 West, Black Mesa Energy. Not sure what this actually means. There are two different units involved. Honestly the legalese in this order seems pretty complicated. Any ideas on what to expect now?
Since you missed the deadline, you will be assigned the lowest royalty choice. The pooling will be for a certain period of time, usually 180 or 365 days in which the operator must drill the well. The terms are in the order.
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The well has been drilled & is being completed as we speak. You should see revenue in 6 or so months if your title is clear.
Eric: After reviewing CD#202101647-T and Order #723654, dated February 22, 2022, you have not yet missed your date to make an election. But, your election needs to be made on or before Monday, March 14 @ 5:00 pm. You will be choosing one of the following: 2(b)- $2500/acre, 1/8th; 2(c) $2250/acre, 3/16ths; 2(d) $2000/acre, 1/5th; or 2(e) $500/acre, 1/4th. Good Luck.
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Todd: thank you. I am reviewing the order and trying to understand how to make the election. I understand it has to be in writing, but I wanted to confirm that my understanding is correct. It seems like I need to send it to Black Mesa Energy at the address in the order. Is that correct? Obviously I will need to send it overnight express or something like that to get it there before Monday at 5pm.
Yes send to Black Mesa. Only needs to be postmarked by 5:00 pm on Monday. IMHO, you want the 1/4 royalty option. The wells in this area are very good and this well looks good so far.
Definitely send your election return receipt requested and with tracking. It could be the best $15 you ever spent. The post office doesn’t postmark every letter.
Todd, thank you very much for taking the time to look at the order and inform me that I had not missed the 20 day deadline. When I looked a the order initially I saw signatures at the end with the date 2/11/2022 and that is what I thought the order date was. I did not notice that the OCC secretary signed on 2/22/2022. I really appreciate your help – I wouldn’t have responded to notify Black Mesa of my election otherwise. And I also agree the 1/4 royalty seems the best way to go.
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