23-12N-6W offers to purchase

Advise please, My lease is coming due in May. They have option of 2 year extension. This lease was signed 3 years ago with no production from the well. Now it is producing and growing. Am i committed to let them extend the 2 years? If not what would be a reasonable lease price and at what royalty rate?

Thank You,

If you have a well that was drilled under the lease in its primary term, then the well holds the lease under the terms of the lease. It has now moved into the secondary term which will last as long as the well produces or other wells are drilled in the same formation under the terms of the lease. The option to renew is no longer valid.

Once your lease starts receiving Royalty payments it is HELD by what is called Production. A new lease or extension is not an option until Production is suspended by TERMS Spelled out in your lease. This is why it is so important to not accept the lessees lease terms and ask via an Attachment : terms that are favorable to the lessor-you. Some leases allow the oil company to pump once a year – and that satisfies the language to HOLD the lease – you dont want that

Has anybody heard the status on Justify 26-23-12-6? Looks like permits have been approved but nothing being drilled yet and nothing else on OCC since February. Anybody heard anything?? Thanks!!

Nothing new posted on the OCC well records page. Roan and other companies have been under pressure from their investors to stay within their capital budget and cash flow. So many have pulled back and are drilling much slower now. The permits are good until about August 2020. So it looks like they posted them early and are part of a long term plan. Orders for all the horizontal wells were approved in April. You should have gotten a pile of mail on them.

I have a small interest in the Justify wells and have not gotten any mail at all from Roan since the hearings were held in January. I should add that I needed to have this property probated and that was settled in February of this year with notices going out to Roan and others who drill in this section. The mail I did receive early this year came in the name of my late wife and I’ve had nothing come directly to me since the probate and I seem to be out of the loop. What sort of mail should I have received and how can I retrieve it from Roan?

Richard, in order to have any rights you need to be appointed as the personal representative or administrator of the estate. this can occur quickly. Then you should be able to make elections under the pooling order. In Oklahoma simple probates take about 50-75 days to finish.
If you are out of state there is no need to travel to Oklahoma.

Richard, I’m not sure what you’re getting at unless you are fishing for business. As I stated, this property has already gone through probate in the state of Oklahoma and the title is in my name as of February of this year. All my ducks are in a row. I don’t know anything about a pooling order and I get paid on this property from two other oil companies under terms of a lease that was signed many years ago. The reason for my post was that Ms. Barnes said “Orders for all the horizontal wells were approved in April. You should have gotten a pile of mail on them” . I have not received a single piece of mail from Roan since January of this year before probate was settled. I was curious as to what sort of mail I should have received and if I’m missing out where I can retrieve it. Simple as that.

Have you tried calling Roan to verify they received a copy of the final order on the probate and that they have your contact information?

I called Roan owner relations yesterday and couldn’t get much info. The person I talked to said nothing has been sent out on the Justify wells yet because nothing has happened with them beyond the permit being issued. He said when the time comes to notify people then that’s when the lawyers will track down ownership. As of now he couldn’t find my name nor the name of my late wife anywhere in their system and didn’t seem to think it mattered. All the mailings I’ve gotten so far are copies of court filings and perhaps they were sent by the courts or the Oklahoma Corporation Commission and not Roan. Basically, the guy at Roan told me to sit tight and wait for the wells to begin producing. But again, I’m still worried that I’ll miss out on important info if they don’t have a record of me as owner and I don’t know how to find out if they received a copy of the final order of the probate. By the way, I also emailed Roan customer relations and the response “originated from outside the organization” which gives me pause.

Mr. Johnson: I assume the two wells you are getting paid on are the Robison D-1 and Hasta 1206 23-1MH wells and that is from the oil & gas lease executed many years ago.

Roan has filed and received the Order for Increased density for 5 Mississippi wells and 5 Woodford wells. You can check CD#201810329, Order #691362 to see if you or your predecessors in title were named on the Application.

The party at Roan to contact is Joe Ferguson, phone 405-896-8230.

None of the Justify wells has been spud yet, that I can see. Only Intents to Drill filed.

Hope this helps.

Todd M. Baker

Thanks Todd. That helps a lot. The wells I’m getting paid for are the HASTA 1206 23-MH and the TA Dobry 1-23 (not to be confused with the Dobry 1 which has been plugged). I don’t know anything about the Robinson D-1 well. I have copies of both those orders in hand (as well as others) and my late wife is listed in all of them. I’m hoping that my name will supersede hers from here on out.

The OCC sends out the mailings for anything having to do with spacing, permitting, well location, etc. You should be getting those. Check the respondents lists and see if your wife is on there or if your name is on the newer ones. Contact the attorney that sends them if the name is not correct.

Roan will not send you anything until the wells have been drilled and completed and then you will get a Division Order about five months after first production, so looking at next year sometime.

In the meantime, you can watch the progress of the OCC cases on their website. You should get the mailings and you can get all the exhibits off the website. Use the case numbers off the mailings to look up the progress and status. http://imaging.occeweb.com/imaging/OAP.aspx

You can watch the progress of the wells: permit, spud, survey, completion, etc. on the OCC well records website. Roan will not send any of this to you. Test

Once the wells are drilled, you can watch for the date of first sales on the OK tax site. The “active date” is very close to first sales. From it, you can estimate when you will get the Division Orders. They may be delayed due to the large number of wells that are going to be drilled at the same time. Gross Production

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Ms. Barnes, that all makes sense and thanks. I found on the OCC site something that was filed on April 25. I did not get a copy of this in the mail and my late wife is still listed in “Exhibit A” as an interested party who should’ve received the mailing. I guess I’ll have to monitor the OCC site to keep abreast and hope the roster gets updated sometime.

Contact the attorney listed on the one with your wife’s name and ask how to get the mailings transferred to your name. They will most likely need probate information.

Richard: Go to this website to find out about the wells that are producing in this section. They may not all be 640 acre units. You have to check information on each well.

https://otcportal.tax.ok.gov/gpx/gp_PublicSearchPUNbyLegal.php

Check the Check by Legal box and make sure you put in the following information: Section: 23; Township 12N, Range 06W. Each requested number must have 2 digits, hence 06.

Good Luck.

Once a well is drilled, Roan will hire a title attorney to do a Division Order Title Opinion (DOTO). The company (or a landman/land company hired by them) will furnish the title attorney with everything filed at the courthouse to that point plus any documents they’ve been sent. So you have two chances of being found. If you find out division orders or checks have been sent, and you didn’t get one, then you can contact Roan. The DOs & checks probably won’t be issued until at least 5-6 months after the first sales are made. M_Barnes has explained how to find the active date in one of her replies…

Thanks everybody. There’s a wealth of information here that applies to all of us owners.

Todd, I’ve spent the morning poking around the OTC site. I already knew the TA Dobry well was 80 acres and get paid on that. The HASTA 1206 23 1MH is not listed except that the API shows another name for it. It has 640 spacing and I get paid on that. My question is this…should I get paid from any operator who has 640 spacing in section 23? The OTC site shows Liberty Trust 1 with 640 spacing and we’ve never gotten anything from them. This well has been active since 1984 and is still producing. Are past monies due?

Todd, in doing further research, it looks like the Liberty Trust 1 well is located in the NW part of Section 23 in the same area as the TA Dobry well is and where my interest is. It seems like I should be getting paid on this well regardless of whether it is 80 acres or 640 acres. If this is true, how do I go about getting this fixed?