I am negotiating a lease in Dewey County, Section 10-19N-29W. Will this always be pooled? If so, about how long is the time period before a company pools? What are the risks in this Section that Mewbourne would walk away before pooling?
Good questions for which there are only speculative answers. Here is the link to Mewbourne Oil.
I believe you have your Range wrong. Your questions are very broad and that nobody on here can answer unless they work for Mewbourne and disclose propierty info, which they will be sued over and likely end up in jail. But to try and answer your question, the risks would be declining oil and gas prices and offsetting wells drilled that arent good.
Ruth, check your range. Dewey doesn’t go that high. Come back with the correct range and we can look up pending cases.
No guarantees on pooling. If they do plan on drilling and they have not leased everyone, then pooling cleans up those folks that cannot be found or refuse to lease.
Are you asking about the chances of being left with no deal because your are waiting to be pooled instead of signing a lease? If so, having the accurate location would likely help as the STR you listed does not exist.
Pooling cleans up those folks that refuse to lease? What does that mean?
In OK, all minerals rights must be accounted for before drilling. For the mineral owners who cannot be found, are deceased, refuse to lease, lease close to expiring and fell through the cracks, etc., the Oklahoma Corporation Commission has a forced pooling procedure to handle those acres.
The operators will file with the OCC and mail outs will be sent to the last known address for each owner of record. A hearing on the merits of the case will be held and the judge will send out an order with royalty/bonus options for the remaining owners to choose from. They are supposed to be the highest amounts offered by the operator in the current section and the surrounding eight sections over the last year. Usually, there are two to five bonus/royalty pairs. I prefer the highest royalty most of the time. The bonus is minimal in comparison to the royalties on one or more wells over the life a production.
The mineral owner has 20 calendar days in which to answer or they will be assigned the lowest royalty and its bonus. If they cannot be found, the bonus money will be held for them in a special account at the operator’s. Pooling orders are usually for a spud date within six months to 18 months. A year is common. If no spud, they can be renewed. Poolings have their own statutes and in some cases can be favorable over a bad lease from an operator. Some leasing agents use “forced pooling” as an implied threat. I do not take it that way, but more as an opportunity. I prefer to have a rock solid mineral-owner-friendly lease, but some operators will not budge on their operator-favored language. In those cases, I will happily go to pooling.
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Great information for those that have minerals in OK. Mineral Owners need to invest in growing their knowledge base so they can make the best decision. Thanks @M_Barnes.
Yes, it is a typo: Section 10-19N-20W. Thanks for getting back to me!
I so appreciate your help. Yes, it is a typo: Section 10 19N-20W, Thank you for getting back to me and I look forward to hearing from you.
My mineral rights are in Cass County, TX. They have not drilled there before. The Bonus is a few hundred dollars and expected royalties are $200/mo. They are pooling the area that crosses my interest. Since, the Lease and Bonus are low, I’d rather go unleased. Where I would get 100% royalty less Production Costs in 18 months or so. Last time I went unleaded a couple of years ago in Reeves County, it was because we couldn’t agree on the Bonus. Drilling company was Chevron. I ended up getting over $490,000 with 100% royalty less Production Costs. So, I thought why not do it again. But this time it’s Pooling and a much less desirable area. So I don’t expect too much this time.
Brenda, Your reply is for Texas. The pooling in OK is very different. Did you mean to put your post here or in Cass County, TX? Please post in the correct county so that the topic can stay focused.
Mewbourne has a new horizontal well in sections 27/22-19N-20W so they are active in the township. Another logical well would be in 10/15.
At the moment, only two leases have been filed in section 10. So not a rush to pool at the moment. Always wise to get an attorney to review a draft lease. They are rarely in the favor of the mineral owner and need significant edits. Also, NEVER hand over a lease without getting paid the same day.
This might belong in Cass County. I’d be interested in knowing in which survey area your property is located, as my family has rights in that county. You are aware that Cass is in the Smackover region for lithium, correct? You might be well served by speaking with a good landman and attorney prior to taking any action.
I will look to see where the rights are in Cass County. Smackover region for lithium? That’s very interesting. Do you have more info? Any current production or planned in Cass County that you know of? I’ve never been asked to sign a lease for Cass County -before - all I’ve signed is for Reeves County. The post about Pooling came up and I replied.
Thank you for getting back to me.
Columbus Survey A-227, Mary S Echols Survey A-348,Thos. Hanson Survey A-448. Albert Emanuel Survey A-326, William Edmondson Survey A-322
Columbus Survey A-227, Mary S Echols Survey A-348,Thos. Hanson Survey A-448. Albert Emanuel Survey A-326, William Edmondson Survey A-322. Cass County, TX.
Please post questions about Texas over in the proper Texas County.
Post in Cass County, and you will find information about the Smackover Region via a Mineral Rights Forum search.