API Numbers, why don't the operators use them more?

With a LOT of poking around, I have managed to track down the API numbers for all of the wells that we have inherited the mineral rights to. (I hope I stated that correctly!!) Or at least I think I did. There were one or two that just weren’t clear but I made my best guess.

Now to my question… Why don’t the operators list the API numbers in the Division Orders or on the Royalty statements. A few do, but most don’t. Since, as far as I can tell, the API is the ONLY thing that uniquely identifies a well, it would make sense to me to use the number. We all know that there can be multiple wells with the same or similar names and the same or similar well numbers. For example, Shir-Lea #1 is also shown as Shir-Lea 1-9 and Shir-Lea 9-1 in my documents.

The operators are required to use API numbers for permits. States need to legislate that the API number be included in the Division Order documents. It sure makes it easier when they do! You might mean Shir-Lea 1-8 since the well is in Section 8. API 35051212100000

In Texas, the same API number may have different RRC lease numbers over its lifetime. It is important to keep track of the RRC lease number as it changes to be able to find the current production related to the well. It is also possible that the acreage allocation will differ and that could affect the DOI. For example, original completion is in a field and depth, such as an oil well in Phantom (Wolfcamp) field. If the operator files a new completion report as a gas well with no other changes, then the RRC Lease ID will change. Or if the operator files to transfer the well to a different field, then again the RRC lease ID will change. If the well is recompleted uphole (ie at a different depth), then the RRC Lease ID will change. The assigned acreage may also change in the different depth (such as from 640 for a very deep gas well to 40 or 80 acres for a shallow oil well) and so some minerals will not longer be associated with the well and the DOI will change for the remaining mineral owners. You can find the history of associated RRC numbers for a particular well by going to Well Bore Query under RRC online and entering the API number and asking for both current and historical. Just another part of recordkeeping details.

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So true in TX! And confusing if you don’t stay on top of it. Good to do an annual check of all of your wells.

OK is a bit more stable as most wells report from the meter at the wellhead and stay the same. They keep their API unless they drill a sidetrack and then they will add four more digits onto the end such as 0001 or 0002 for a second sidetrack. Occasionally, the PUN number will change with a gathering of several wells into one meter, so keep that number in your spreadsheet as well. Also good to have a column for your owner ID and a column for your property ID listed on the statement. Those can change over time as operators change. The property ID is how many of the owners identify a well for internal accounting purposes. I have several operators that have multiple owner IDs for me. They have bought other acreage and each set of purchases gave me a new ID. Lots to keep track of!

Yes, I did mean Shir-Lea 1-8. Whether or not it was a fat finger error or misremembering, I don’t know. Thanks for the correction.