Greetings,
My dad and uncle own mineral rights in this area. Over the past 15 years or so it has periodically been leased, most recently by the Easton Corporation.
Why do they keep leasing it out but no one ever drills? Anyone know anything about Easton?
I'll post more details after I talk to dad on the terms. I have the full property description, does anyone know a good website to pin it down exactly.
Thanks,
Matt
Usually someone is leasing it that has no intent to drill but leases on the prospect that someone else will drill.
Or
Someone is leasing with the intent to drill but priorities of the company change and they move to a different area.
Leasing activity is a good sign and the benefits of continually being leased without drilling is bonus money gets paid every time.
With the next round of leasing ask for a really short term and if you ask some questions about who is going to drill and determine it may not get drilled again ask for the highest bonus possible.
<Thanks for the info. I think my dad and uncle have just been taking what they are offering. I think it is a three year lease, but I'm not sure what kind of bonus they are getting.
Seems like there is some sort of drilling rig in the general area on Google Earth but it si hard to tell.
Still haven't found out much about the Easton corporation who is leasing it. Just isn't much on the internet that I can find.
Thanks again!
Matt
Details:
Section 06 Township 17N Range 2W east half of the SW quarter 57 acres
Lessor is Easton Enterprises, Inc with a P.O. Box in OK City.
March 2011 they offered $75 per net acre bonus with 1/8th royalty on gross proceeds for 3 years.
The letter with the offer back in 2011 was signed by Montee L. Hoffman of Easton Land Services.
May 2012 we received an application and notice of hearing :
Applicant: First Liberty Energy, Inc.
Relief Sought: Drilling and spacing units
I think the well name is Coral # 30 Well
Can someone tell me what this all means? I've been reading a lot on here and want to hear from someone more informed than myself!
Thanks in advance!!!
Matt
Matt i am not an expert but i did look up the application by First Liberty on the OCC website. They are applying doe a drilling and spacing covering 80 acres which is the N1/2 SW of 6-17N-2W. You will need to check you legals and see if you have any of your acres in the north half of the Sw. quarter. I hope they did not take that lease offer of 1/8 should be able to at least get 3/16 or try for a 1/5. I am not aware of the bonus amounts for this area but if you have not leased and they go on with their plans on drilling they will have to pool anyone that has not leased and you should get the going rate if you accept the ruling for the OCC on the final pooling order.
Matt,
Don't let them sign a lease that cheap.
I don't know where the Coral # 30 well is, but it maybe in section 30, are you sure that is the name of the well? Usually it would read like this: Jones H 6. The name of the person who owns the land or mineral, H is for horizonal, 6 is the section it's in.
Most everything today is leasing at lease 3/16 to 1/5. Most of the leases are going for $500. up in northern Logan Co. First Liberty is asking for a spacing order from OCC. If it's H well, usually it's on 640 A. You need to call OCC and either tell them that your property isn't lease and you want to protest any spacing unless they offer to pay you the going rate and %. I think you can still do this on the phone.
They usually get the land spaced several months before they drill the well, but the date of the hearing is very important, so call before that. If you don't, you maybe pooled. The 3 years is the time they have to drill the well, once they hit production it will hold the lease till the well goes dry. Some leases have been held since the 1940 or before.
As far as maps go, you can purchases a map of the section from the County Clerks office. One only has the section, the other has people's who own the property name.
But, it doesn't show where they are drilling or anything.
If you know any of the neighbor, call them, ask if they have leased, if they will tell you the approx. amount they got and if there are any wells around the area that are producing?
Virginia in the spacing order the well proposed is the Coral 30-1 so it must be a directional well from section 30- 18N-3W drilling into 6-17N-3W. All they are asking for is an 80 acre spacing to drill into the Mississippi formation.
Virginia,
They signed this lease back in March of 2011, with a three year term. They live in Missouri and AZ and took what they were offered not knowing any better. Is there any recourse for so obviously being taken advantage of?
the Corporation Commission filings read "(ii) designating the Coral No. 30 Well located 430' FWL and 660' FNL of the SW/4 of Section.....", "Logan County, Oklohoma, as the unit well for the drilling and spacing unit comprised of the N/2 SW/4 of Section 6....."
That's what I was going on with for the well name. And yes it is many parties on the paperwork and cites "80 acre drilling and spacing units"
Hearing date was June 5, 2012.... Think I got shown this stuff too late!!!
Please advise!!!
And thanks again,
Matt
The more I read and re-read this stuff, the more I just want to throw up! I just took an interest on whim and didn't think much of it.
My dad and uncle are 76 and 82 and just trusted that what they were being offered was fair. My profession makes me a bit more cynical so i decide to take a look!
Please let me know if there is any recourse at this late hour since we missed the June 5 hearing date!
Thanks!
Matt
Virginia Pflum said:
Matt,
If they signed the lease that is it. I'm real sorry to hear that, but maybe they will get a nice well and have a happier life. I just hope they didn't sign the lease as it was presented to them. As they maybe paying for transportation and lots of other things. But, it's to late, the damage has been done. Don't feel bad as lots of people just don't know.
If they are asking for an 80 spacing, it's a vertical well, not horizonal. Then the name may be the person that owners the surface and it doesn't have to have anything to do with the section number.
If this is your father, you need to get a copy of the lease in case something happens to him in the future. You will also want to get copies of the division order if they drill a well and it comes in.
I know it's hard help parents, but sometime a person has to help. I was lucky, my parents helped me along the way and I helped them back as they got older. I'm a only child and they knew it was going to be hard to take care of long distances. I live in TX, but lot of my property is in Oklahoma. So, it can be done. You just have to know the neighbors, research all the companies, keep records of them as they love to change their names if they get bad write up.
Richard Pruitt said:
Virginia in the spacing order the well proposed is the Coral 30-1 so it must be a directional well from section 30- 18N-3W drilling into 6-17N-3W. All they are asking for is an 80 acre spacing to drill into the Mississippi formation.
Richard,
Is it 2 w or is it 3 w. 6-17N-2W is different than 6-17N-3W.
Are you saying that it's a Hortizonal well drilled from section 30-18N-3W, so they are drilling across the road.
Then why are they asking for 80 A spacing in the mississippi? But, most of the mississippi are H. wells nowadays.
I think I have misunderstood something on this.
Virginia I just had a senior moment. i have been researching some small portions of minerals that I inherited, trying to locate and see if any production etc and i just got my numbers mixed. Matt's well is a vertical well and porposed to be 80 acreas which is not unusual for this area, I have a very small portion of wells drilled in sections 7 and 16 in 17N-2W both vertical.
Virginia,
Thanks so much for thehe info. Unfortunately they signed that darn lease. All I can do is hope they don't elect to drill for a couple of years. If that's the case I'll ensure they get a better deal
I'm not even going to tell them at this point. I'm just going to make sure I'm in the loop next go around, if there is one! No sense in making them feel bad when there isn't anything we can do about it now. They were just uninformed and trusted that what they were offered was fair when in fact it was a serious ripoff.
FYI the name Coral does not match any names in the filing paperwork.
I just hope anyone reading this will realize there are some serious thieves out there!!!
Thanks again,
Matt
Virginia Pflum said:
Virginia Pflum said:Matt,
If they signed the lease that is it. I'm real sorry to hear that, but maybe they will get a nice well and have a happier life. I just hope they didn't sign the lease as it was presented to them. As they maybe paying for transportation and lots of other things. But, it's to late, the damage has been done. Don't feel bad as lots of people just don't know.
If they are asking for an 80 spacing, it's a vertical well, not horizonal. Then the name may be the person that owners the surface and it doesn't have to have anything to do with the section number.
If this is your father, you need to get a copy of the lease in case something happens to him in the future. You will also want to get copies of the division order if they drill a well and it comes in.
I know it's hard help parents, but sometime a person has to help. I was lucky, my parents helped me along the way and I helped them back as they got older. I'm a only child and they knew it was going to be hard to take care of long distances. I live in TX, but lot of my property is in Oklahoma. So, it can be done. You just have to know the neighbors, research all the companies, keep records of them as they love to change their names if they get bad write up.
Matt,
If they got a spacing order from OCC, they will probably be drilling within the next year as they usually don't get a spacing unless they plan on drilling.
But, look at the good side of this. They may get a big well that will greatly off set any bonus money. Sometimes it's better to get a good well drilled that last a long time than a one time big check and never see a well.
I'm assuming they don't own the surface and that may be why you aren't seeing the Coral name. That maybe the land surface owner. You won't see it in any oil paper work except on the spacing order.
If they get a well, ask your father and uncle to send you a copy of the division order before they sign it. Make sure they are getting the % they are suppose to. If you don't understand it, call the company and have them explain it. If you still don't understand it, go to a good oil & gas attorney. That can be the next ripe off. Some oil companies can figure and are great. Other's????? Hate to say, cheater, but it looks like that sometimes.
Virginia,
Like everyone on here, I hope they hit a big one! That would take a bit of the sting out of knowing my dad and uncle left $15,000+ on the table in bonus money and got a low ball royalty %.
I'll make sure to get a look at that Division order when it shows up.
Last question, what type of well would that type be looking for, gas or liquid petroleum? I know they'll get both, but seems like they aren't drilling these days unless they expect ot get oil.
Thanks again for all of you insight and advice, wish I'd have found this forum a few years ago!!!
Matt
Matt,
I think the wells north of Guthrie are mostly oil, but they will have some gas also. I believe OCC sets the records for either oil or gas. If they produces more oil than gas, it's an oil well. Most of the wells in Logan Co are probably set as oil wells, I haven't seen a map the last couple of years, so that may have changed.
Wells in Woodward Co and that way are mostly referred to as gas wells and gas is priced so low, that no one wants to drill them now.
Now if you want to get more confused. When you get an oil well, then it has different grades of oil in different location. You may have a well that is 37 grade or one that is 47, the higher the number the better the price.
But, you won't need to worry about that as the oil purchaser will check that and pay accordingly.
I wish you'll a big - big well and then you can help the rest of us pay taxes.