I am mineral owner and a first timer blogger here, I was just informed a few weeks a go that there was a hearing date set for 4/30/13 for a permit for Horizontal drilling and spacing units on s04 t20n r2e SE, 640 acres in Payne County. How or where can I get more info of progress? The applicant was Devon Energy. I have many questions and the people at Devon energy are really not returning my calls at this stage. I did speak to Devon once and he indicated the drilling would commence and be complete typically 30 days after the hearing. I have questions like, my mineral deed said i have 5 of 160 acres so why is there 5 of 640 now, are they only drilling 1 well or multiple wells seems like a large area for just 1 well. There should be some kind of documented agreement or something for all parties attached to these properties. Maybe i am just excited and want to know what is going to happen before it does, or i have anxiety over the whole thing. all feedback is welcome. Thanks.
Back in Feb the same spacing was approved in Sec 9 just below your section (4).
A permit to horizontal drill was just approved in section 16, two sections south of your
section. You might call Devon at 405-228-4800 and leave a message. They got back to
me in 3 days. Leave a message with your mineral locaton and API number on the spacing
document. A guy by the name of Matt Beavers got back to me and was very helpful in
answereing my questions. Matt is mineral rights contact at Devon for that part of Payne County.
Once the spacing was approved (took 3 months), then a drilling permit will be requested.
He told me that the whole section is a unit and they can drill several wells per section. He said they
plan to drill Sect 9, one just south of yours, in August or Sept. Keep an eye on the blog site.
Clint is great to post documents from Corporation Commission. Good luck.
Thanks Clint
Steve,
Did you sign a lease? The 5 of 640 means the well will be for the entire section. If you didn'dt sign a lease then you are part of the poolling order. The hearings are standard procedure. They have upto 6 months to pay once the well is producing. Those listed as unknown will not recieve any money from the well until they are found and proven heirs of the land or mineral rights.
Hello Barry,
No lease was signed by me but not so sure about the others that may have majority share, I was mailed a Notice of Hearing to drill with 17 people and Corporations listed and have no idea who has what shares in the picture except for my sister and cousin. I assume this means we are part of the pooling order and since our shares are so small any other controlling parties get to make those decisions.
Barry K Pagel said:
Steve,
Did you sign a lease? The 5 of 640 means the well will be for the entire section. If you didn'dt sign a lease then you are part of the poolling order. The hearings are standard procedure. They have upto 6 months to pay once the well is producing. Those listed as unknown will not recieve any money from the well until they are found and proven heirs of the land or mineral rights.
Phillip
The Notice of hearing did mention that sec9 also and the guy I spoke to a Devon was Matt Beavers. Matt kind of laughed and asked where I was from when I asked what the probability was that they would produce oil/gas from that section, I am from Southern California. Matt also said a lot has changed with drilling since the 1980's. Matt made it sound like they would have the well drilled about 30 days after the permit was approved but now sounds like it could take bit longer. How would I get the API#, will they mail that to us? All this seems like it's still in the beginning stages for that section and could take a bit longer than Matt may have suggested. Thanks.
Phillip Beall said:
Back in Feb the same spacing was approved in Sec 9 just below your section (4).
A permit to horizontal drill was just approved in section 16, two sections south of your
section. You might call Devon at 405-228-4800 and leave a message. They got back to
me in 3 days. Leave a message with your mineral locaton and API number on the spacing
document. A guy by the name of Matt Beavers got back to me and was very helpful in
answereing my questions. Matt is mineral rights contact at Devon for that part of Payne County.
Once the spacing was approved (took 3 months), then a drilling permit will be requested.
He told me that the whole section is a unit and they can drill several wells per section. He said they
plan to drill Sect 9, one just south of yours, in August or Sept. Keep an eye on the blog site.
Clint is great to post documents from Corporation Commission. Good luck.
Thanks Clint
I can help if you want to send me a friend request I will send you a phone #
Ron, I finally figured out how to add a friend, this blogging is just a bit new to me. Thanks
Ron McKenzie said:
I can help if you want to send me a friend request I will send you a phone #
Steve I sent my # . Did you figure out how to get it ?
Steve
Ron is really knowledgeable about the corporation commission and knows his way around their
website www.occ.state.ok.us/. On cc web site you can find past productions, permits etc. There were several wells in that area in the mid to late 80'S that produced several years. On the Spacing document is a Cause CD no. 201 xxxxxx for section 9 the number was 300343. This number will help you find information on the cc site and spacing info. I'm not sure where the API number comes from but believe it is assigned with various permits.
Steve Sandys said:
Phillip
The Notice of hearing did mention that sec9 also and the guy I spoke to a Devon was Matt Beavers. Matt kind of laughed and asked where I was from when I asked what the probability was that they would produce oil/gas from that section, I am from Southern California. Matt also said a lot has changed with drilling since the 1980's. Matt made it sound like they would have the well drilled about 30 days after the permit was approved but now sounds like it could take bit longer. How would I get the API#, will they mail that to us? All this seems like it's still in the beginning stages for that section and could take a bit longer than Matt may have suggested. Thanks.
Phillip Beall said:Back in Feb the same spacing was approved in Sec 9 just below your section (4).
A permit to horizontal drill was just approved in section 16, two sections south of your
section. You might call Devon at 405-228-4800 and leave a message. They got back to
me in 3 days. Leave a message with your mineral locaton and API number on the spacing
document. A guy by the name of Matt Beavers got back to me and was very helpful in
answereing my questions. Matt is mineral rights contact at Devon for that part of Payne County.
Once the spacing was approved (took 3 months), then a drilling permit will be requested.
He told me that the whole section is a unit and they can drill several wells per section. He said they
plan to drill Sect 9, one just south of yours, in August or Sept. Keep an eye on the blog site.
Clint is great to post documents from Corporation Commission. Good luck.
Thanks Clint
Steve, I have leases in both Payne and an adjacent lease in Logan County. My hearings were in February for 1 well per lease. Devon has up to a year to spud the wells upon approval of the orders by the OCC. There was a follow up hearing for an additional 3 wells on my Logan County property on April 1 which the OCC approved because of the reserves that the property has. Devon has to obtain another approval from the OCC for anything beyond the original 1 well and substantiate the additional wells with particulars. My leases both expire on 10/1/13 and if they don't spud they will exercise their option on the leases. Rest assured, Devon will make every effort to start drilling before your leases expire because they don't want to pay the bonus money again. The reason that they have to include all mineral owners in the entire section is that horizontal wells require a minimum of one section,1 square mile, to be drilled and completed. I like you have 5 mineral acres on 2-160 acre tracts. Devon currently has over 50 drilling rigs running between the 2 counties. Everything that they do is on an assembly like type schedule. Be patient. Don't feel bad about not being able to contact them. They are extremely busy and if you do talk to someone, they will not give out certain information. I have talked with their land man several times. Most recently last week. Your acreage like mine should get you around .00146484 for each well of all gross proceeds that the well produces off of the wellhead, not after Devon has subtracted all of their operating expenses and accounts for a profit.
Steve, PS. I am excited also. These folks only hand out info that the want. I suggest that you subscribe to the Oklahoma Oil Registry, $35 per year. You can keep up with the drilling activity in Payne County.
Steve, Devon informed me last week that they tentatively have my 2 leases on the drill schedule for the mid July/August time frame.
steve, my percentage is based on 50 mineral rights owners.
Larry,
I am so glad to here your progress is moving along, makes me hopeful. I did speak to Ron McKenzie who explained a lot of details to me which was invaluable information for me a beginner, especially the part where I can be an investor in the costs of drilling that would net 100% of the royalties vs the 16% Devon stated as the base payout. I am starting to see the bigger picture and am very grateful for everyone's input on this blog, so glad I decided to reach to those more educated than I. I will check out the Oklahoma registry too.
Thank you all.
Larry Douglas Smith said:
steve, my percentage is based on 50 mineral rights owners.
Larry,
I have just been given more detail of real numbers from Devon Energy. Now I have a question that I need help with. Devon says I have NPRI of 1/12 of 1/8 of 160 acres = 1.66666666667 net acres, the royalty is at 1/6. and since the the drilling and spacing order put 4 sections together at 640 acres how does all this affect me, does that mean I have 1.666666667 acres of 640 acres at 1/6 royalty now? The owner of the other 480 acres has the lease for all the land and minerals for those sections.
Larry Douglas Smith said:
steve, my percentage is based on 50 mineral rights owners.