Phillip and Ron, “Oil for allowable purpose” (mineral oil) sold at the well but transported, manufactured, or converted prior to sale might not be included until it’s sold under contract and some companies will continue to lag behind on current production payments claiming allowable adjustments. Mineral owners might want to send the DO along with a letter stating their royalty interest check is not timely, demand the statutory 12% interest and immediate payment of all production royalties due from backlog and current production sales including pre sales and ask for a copy of the calculations.
Ron, what do you do about subsection b?
§52-570.10. Payment of proceeds from sale of oil and gas production.
B. Except as otherwise provided in this section:
- Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:
a. commencing not later than six (6) months after the date of first sale, and
b. thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.
Ron,
Thanks for the historical video, I don’t think cars today could have made the trip. Thanks for the tip on sending statute letter.
Martha didn’t really understand all you were saying. Just know Devon is selling oil from my lease and keeping the Royalty money. Wonder if they carry Sunoco for 7 months.
Does anyone know if Phillips 66 is buying up production in Sec 27 18N-1E or the surrounding area.
Greg, I heard that the Phillips 66 refinery, instead of Cushing, is now receiving production from eastern Payne county.
Thanks, Ron !
Steve, MCFPD - Million Cubic Feet Per Day
I haven’t paid much attention to nat gas figures in the checks but I will now
Thanks again & have a great weekend.
Thanks Martha. Then they are only pulling natural gas I guess & is that a lot?
BTU’s Energy dictionary http://www.energyvortex.com/energydictionary/british_thermal_unit_(btu)__mbtu__mmbtu.html
MCF
MMCF
Does anyone know the average NGLs percentage of Payne County inlet stream gas? For example a ‘rich’ inlet stream gas can be 80% dry gas, 15% NGLs and 5% impurities, but the NGLs can be higher than 15%. Thanks in advance.
A third well was completed on 6-18N-4E a couple weeks ago. The first is producing royalties, the second was listed as “SWD”, the third is “BOPD, 481 MCFPD” - I’m guessing the second one is a water dump well but I don’t know what those letters/numbers mean about the third. Love this forum, thanks
Steve, FYI Check stubs volumes are in MCFPD, but market value pricing is MMBTU which represents a thousand thousand BTUs. 1 standard cubic foot of typical natural gas yields ≈ 1030 BTU (between 1010 BTU and 1070 BTU, depending on quality, when burned)
i just received a notice of hearing for 31-18N-3E. what happens next??
G. Win American Energy has filed for spacing and location exception. When they get those they file for pooling ,which will be good for a year.
Therefore, will they send me a lease before they pool?? Thanks Ron and Martha.
Beware! I have seen instances where companies send leases with pooling orders or right before pooling orders are actually issued. The leases sent were more binding and less desirable than taking an election from the pooling order. No lease is required if you are force pooled.
G. Win, As Rick said, sometimes an operator may send you a lease. Also, a third party may offer to lease your minerals after a pooling. As always, whether you decide to lease before or after a pooling has been granted seek the advise of your attorney and know and understand every word in every clause in your lease before you sign it.