The Landman sent an amended pooling order to an old address in Feb 2023 and I never received it That’s a serious error impacting definition of my participation now.
There is a 1970s lease is still paying a very small payment for a well in this parcel owned by succession of companies.
The company now says that there can be no cash bonus because of that old lease. The language quoted above seems to say nothing eliminating the cash bonus. It’s just redefining the royalty.
Can anyone offer clarification of the language in that option or what what I can do
thanks
Ernie
What section, township and range? Need location to look up the old well. What case number is this pooling from? Do you have a copy of the old lease from the 70’s?
If you have an old lease that is still active, then very likely that you are held by it because leases back then were usually from just below the surface to the center of the earth and held all reservoirs. If you were pooled for a different reservoir in the 70’s (probably pretty rare) and this is a new reservoir, then there might be able to be pooled.
It is the mineral owner’s responsibility to keep their address up to date at the county courthouse, not the operator’s.
Grady 27-07N-07W
pooling Order No. 731700
pooling order was for Ralph Ellison Well. it nowhere indicates existing lease disallows bonus payments, only adjustment of royalties.
don’t have 1978 lease
correct address was in my message specifying option selection that went to Landman and corporate. courthouse and Camino records at the time. my checks from Camino came to right address.
It has nothing to do with the pooling language that you posted. If your 1970’s OGL didn’t have a depth clause, which sounds like it didn’t, your lease is still held by production and you aren’t entitled to a “new lease bonus” per Oklahoma law.
The initial oil and gas lease has been assigned numerous times since 1975, that has no bearing on your situation. If the lease is still held by production, which sounds like it is, sorry to say but there is nothing you can do about it regarding signing a new lease and collecting the bonus.
-I prefer pooling when I cannot get a good lease with an operator that does not have post production costs (PPC) and other clauses that are more fair to the mineral owner. Most poolings that I have had are gross proceeds and do not have PPC. Certain operators are more inflexible than others.
-If I have been pooled on horizons above or below, then pooling in a new zone may make sense. Pooling acts as a depth clause since it is limited to the zones of interest.
-If drilling in imminent, then pooling is similar to a very short lease.
-In some cases, I have been paid multiple bonus amounts if the drilling did not commence in the court ordered time frame.
-Many of the other oil companies, bank trusts and professionals lean toward poolings, so they know what they are doing and I have learned from them over the years.
Pooling respondents lists are often drawn up fairly quickly with only a cursory title look so they may miss things. The closer they get to pooling, they start to check a bit closer.
Which well are you getting paid on? If it is the Erwin 1, then this is one of the frustrating situations. It’s last payment was on 12/1/22, so they considered you still in payment status, so your old lease held you. The pooling Order of 731228 was on January 9, 2023 then a correction was Order 731700 for a scribner’s error. That well has not paid since then, so it was “used” to keep some leases alive for this pooling. Did you have a shut in clause in your first lease? Did they pay shut in payments since there was no production from 6/29 to 8/22? Thomas 1-27 last production was 9/21. Pickers Club 1-27 last production was 9/21. Kayser 1 was 11/18. Fairgrounds 1-27 was P&A. Katy 34-A was spud in 27, but production was in 34. It was out in 2006. Unfortunately for the mineral owners, it happens. You could talk to an attorney, but it might cost you more than it is worth.
At this point, they may say that you are held by the old lease and you would get the royalty of the old lease.
On the partially optimistic side, they only had 365 days in which to spud from the date of the order and if there is no permit or well drilling on January 9 of 2024, then you might have another chance at it. IFFFF, they don’t pay you for the well by December 2023 or send you a shut in payment.
Canvas finally put up this posting on the Erwin well, saying this is the only one in their records.
this is the well in Grady 27-07N-07W
Non-Op REVENUE Check 0001799546 - Revenue Statement - Jan 25, 2023
Energylink shows last payments for Erwin-1-27 well were recorded in Aug-October 2022. With small amt for oil in Nov Total net 112.73.
yes the well is Erwin1-27 and the report on revenues says “Non-Op REVENUE Check 0001799546 - Revenue Statement - Jan 25, 2023”. Does that indicate the well is not operating. the last revenues were in Dec 2022.
there is no shut-in clause in the 1975 lease but i don’t have the history to show shut-in payments. at least not from Canvas/Chapparal.
Do you know how many acres you own? If so, does that check represent $1.00 per acre? The well isnt shut in, so thats a moot point, all they have to do is pay you $1.00 an acre on the anniversary date of your oil and gas lease to hold the interest since the original lease didnt contain a shut in or depth clause.
the original lease that is the basis for Erwin 1-27 in Grady 27-07N-07W indicates the operator is to make monthly payments if the well is shut-in or not operating. Chaparral/Canvas made no such shut-in payments.
Unfortunately no. Since the well is not shut in and like most, if not all oil and gas leases, it states that Lessee shall pay, or tender a royalty of $1.00 per year per net acre on or before 90 days following the date of the shut in OR the anniversary date of the lease. Since your lease anniversary date is July 3rd, they are not required to pay that until next July since you were paid in January and the pooling took place before that payment. Meaning, unless they shut in the well and release your oil and gas lease, there is nothing that you can do until next July if they do not make that payment.
