Hi. Am new to the forum. Have been in discussion with Bearcat Land about a lease on Section 20, Twp 2S, Range 4W for about 3 years. They've offered a variety of signing "bonuses" but refuse to negotiate any other terms of the lease.
Today I got a call from yet someone else at Bearcat to verify my current address to send me "spacing" information and she said they were getting ready to drill. Yet I have signed nothing (of course there are other mineral rights holders).
How can I find information on what's going on in Section 20?? Have searched the OCC website and its about as clear as mud. Where we I find force pooling information or if a forced pooling application has been submitted?
Thanks in advance.
Kay, when I search the OCC's Case Processing database a blank page comes up for 20-2S/4W. Maybe the application was filed in the last couple of days and is not posted yet. Then again maybe it is a negotiating tactic. Best case scenario forced pooling is several months out. Here are some instructions for the OCC database:
I agree with Michael, pooling is several months out.
Continental (and Citation) has been increasing plays in the 2S-4W township. This should be a Continental play.
We have interests in the adjoining sections North and South of yours (sections 17 and 29)
I would not recommend getting in a hurry based on pooling or threat of pulling if that is what is happening.
Do you mind sharing the offer amounts? The only pooling order they have had recently in 2S-4W was $750 3/16RI. That order was issued yesterday in section 34. I would expect that or near the same in section 27.
Good news on the pooling. I tried the OCC website but need to download some added software so will do that later - thanks Michael for that.
Rick - the bonus offers ranged from $200 per acre (initial) to $1,000 per acre - then they dropped it to $300 per acre. Royalty was always 3/16. My objections were to all the "deductions" from the royalty amounts, including - but not limited to - deductions for transportation, processing, "production costs", taxes, etc. etc. By the time all those deductions in the lease were added up there probably wouldn't be much left in the royalty checks!
Rick Howell said:
I agree with Michael, pooling is several months out.
Continental (and Citation) has been increasing plays in the 2S-4W township. This should be a Continental play.
We have interests in the adjoining sections North and South of yours (sections 17 and 29)
I would not recommend getting in a hurry based on pooling or threat of pulling if that is what is happening.
Do you mind sharing the offer amounts? The only pooling order they have had recently in 2S-4W was $750 3/16RI. That order was issued yesterday in section 34. I would expect that or near the same in section 27.
They have been offering me $750 a one few miles to the North. We have not been close enough on the $$ to talk about the lease terms yet.
From the beginning, Bearcat Land has made this an "all or nothing" offer. They say I must take the terms of the lease, and whatever they happen to be offering as a bonus, at the same time. I find their attitude rude and boorish, which is why I do not yet have a lease or bonus. My other leases do not have all the deductions that this offered lease does.
I am willing to wait. No hurry on my part - the mineral rights here have been non-producing for years. Someone must think they can get something out of it now.
Rick Howell said:
They have been offering me $750 a one few miles to the North. We have not been close enough on the $$ to talk about the lease terms yet.
Way to go Kay! You don't have to take anything.
Kay: There is a lot of 640 acre spacing and pooling going on in that area. I don't see an order on 20-2S-4W yet...I am protesting a spacing in 8-2S-4W right now. The OCC has kind of pulled out a 640 acre rubber stamp these oil companies are using to hold all your minerals...people are starting to push back. I'll try to look later and see if I can find a spacing application.
Bob,
I don't see your protest listed on this. We have a small interest in this one also.
I also have concerns with the 640 acre spacing not being able to produce the entire area from a single horizontal well much less a single vertical well. Citation does seem to drill many wells on their units so I hope that will occur here. But I still share your concerns of it being used to hold acreage instead of explore and produce from it.
Hi Bob - please do let me know what you find out. That rubber stamp issue with the OCC is disturbing. Thanks.
Bob Titley said:
Kay: There is a lot of 640 acre spacing and pooling going on in that area. I don't see an order on 20-2S-4W yet...I am protesting a spacing in 8-2S-4W right now. The OCC has kind of pulled out a 640 acre rubber stamp these oil companies are using to hold all your minerals...people are starting to push back. I'll try to look later and see if I can find a spacing application.
Rick - that is the concern I've had about Bearcat Land and whomever they are fronting.
Thanks
Kay
Rick Howell said:
Bob,
I don't see your protest listed on this. We have a small interest in this one also.
I also have concerns with the 640 acre spacing not being able to produce the entire area from a single horizontal well much less a single vertical well. Citation does seem to drill many wells on their units so I hope that will occur here. But I still share your concerns of it being used to hold acreage instead of explore and produce from it.
I have been contacted as heir to section 30 2s4w by bearcat. They said I should receive a letter about 45 days ago. Some kind of agreement about participation ? Was told it will be new. Doing some research still a little lost. Contential resources is who bearcat told me will be drilling. Any info would be greatly appreciated.
Hi Pamela - you probably will receive a cover letter offering a bonus for signing the lease. I am not sure the bonus amount they are offering now. I've received bonus offers ranging from $200 per acre up to $1,000 per acre. The actual amount of bonus you would get depends on how many acres, or partial acres, that you hold the mineral rights for. The lease will set out terms upon which you will be paid royalty. There will be a royalty amount (my offer was 3/16), plus a list of conditions. Those conditions will give the driller certain rights and give you certain rights. The lease also will list deductions the oil company will make from your royalty payment. Those deductions include, in this case, a share of the cost of processing the oil/gas, the cost of drilling, the cost of transportation, etc. It is important that you read the lease very carefully and, if you can, run it by an oil and gas attorney who is used to reading leases. He/she will give you good advice as to what currently is considered "fair" in an oil/gas lease.
Too, it is important for you to research and understand exactly what you own. There are several good resources here on this forum that you can use. Too, you should peruse the land records for Stephens County, Oklahoma. You can find some info here: http://okcountyrecords.com/search.php?county=069
You also can contact the county clerk for more specific information. Hope this has been helpful.
Pamela reid said:
I have been contacted as heir to section 30 2s4w by bearcat. They said I should receive a letter about 45 days ago. Some kind of agreement about participation ? Was told it will be new. Doing some research still a little lost. Contential resources is who bearcat told me will be drilling. Any info would be greatly appreciated.
Just me, but I wouldn't sign anything saying I would participate in the well. I'd leave that up to someone with DEEP pockets and a MUCH better understanding of the process than I have of the operations because there will be a lot of cost involved whether they make a well or not and if they don't you even get to share the cost of plugging it. If they do you could also be responsible for your part everytime in the future that the well has to be worked on. Another costly operation.
If they won't agree to change any of the conditions of the lease offer my thinking is they think they will just wait and force pool you and then they won't have to agree to what you are asking. But force pooling might end up better for you too so it's best that you don't have to rush into anything. Best Wishes!
Kay, I see nothing in the OCC case processing database for 20-2S/4W. Spacing is the first application and sometimes they go ahead and file Pooling at the same time, there will probably also be an application for location exception. This process usually takes 2-3 months or more, so I don't think forced pooling is exactly looking you in the face. You will get a copy of the spacing application and order whether you are leased or not.
Sounds to me like the Landman is using the "plans" to drill to push you into making a decision now. In my opinion, for what it's worth, you have plenty of time before you must make that decision.
Any new information on 2N 4W?
Lots of news in 2n,4w. What Section?
If you are talking about Stephen's Co. Sec. 34, 2n,4w I'm afraid I don't know any news lately. We also have royalty there and are leased to Continental. The land owner has it all posted and he's the one that bought all of Section 27 (some of it from hubby's half brother and he told brother that he would fight any drilling on his land and that he had plenty of money to fight it with (said he wanted to keep it for the deer) but they are drilling under Section 27 from 22 with the Yandell well and should be finishing up on that pretty soon. Was hoping they would run that one on south through 34 but didn't happen YET. That same land owner bought Sec. 27, 34 and the one just south of there in 1n,4w which I believe is Section 3. He has it all posted and fenced but those oil companies can get it drilled if they want to. With 35 years in the well service business we've not seen the land owner be able to stop them yet and we've see several try. They can however spend a bunch of money and time trying and can postpone some activity but with these long horizonal wells it's not the problem it used to be. Best Wishes for you and us too!
Thanks for the information Linda.