Larry, Can you tell us anything about the Division Order process. Did you hear anything from Continental ahead of time or just when it was completed?
Thanks Larry, It’s only been a month and the wait is driving me nuts!
Thanks Larry. I never really paid much attention to what was being produced just the check amount because everyone said the royalty payment would drop drastically quickly but not true so far. And yes there is a big difference in the amount and payment on the two gases for me too.
Thanks Larry, it is nice that we all can share information and learn from it.How everyone talks it will probalby be Christmas before I receive my first payment since they are scheduled to frack on 4-02.
Thanks Rick that is what i first thought it could be just hope our well turns out some whereclose to the poduction on Michael H.
CR does not contact you until they send the division papers to you. Everything we knew up to that point I learned from either calling or emailing them and reading the quarterly reports which mention our well in a couple of last year reports. Also visited the well site 2-3 times last year during drilling process and talked to onsite CR employee. When you receive your division papers they send a cover letter stating you have and interest in a well they drilled. The division order states the owner and royalty interest which is calculated by dividing your acreage by 640 and multiply by your interest in the lease agreement. Example 40 divided by 640 times .1875 (3/16) equals 0.01171875 which would be your portion of production in a well. Example 100 barrels a day would be 100 x 30 equals 3000 x 0.01171875 x 100 dollars a barrel equals $3515.62 your portion on 40 acres minus production tax. Then you have the option for them to with Federal Income tax or not. The same fraction applies to gas production. After your first check they pay oil every month and gas every other month. It would be possible for someone to own royalty and not know they had a well until the division papers arrive. Hope this helps.
Thanks Larry, I do see 2 codes for gas-200 and 203.
Tim it mainly depends on the avaliability of fracking crews and the priority the Operator puts on a particular well. Continental finished my well in Stephens County and one in Grady County around the first week in Jan. Mine has been fracked and has been producing for 2 or 3 weeks, the other one is scheduled to start fracking on April 2. I have no idea of the criteria for multiple wells. The “core” may be expanding, we have an excellent well down in Stephens County and more drilling every day.
That should have been Devon, not Devol (a typo)
CR listed 2 codes for gas. I assume one is ngl.
I had a couple a questions someone may be able to answer. How long after they drill do they frack and how long does that process take place? What kind of numbers do Cimarex, Devon, etc need to see from a well to put multiple rigs on a section especially in Canadian county in the “core” area?
Larry, does your check from Continental show NGL? Our check from Devol shows gas, condensate, and NGL, but the check from Continental only shows gas and condensate. I am wondering if the Continental well doesn’t have NGL or maybe they are included in the gas or oil amount.
FYI Continental has applied for a Multi-Unit Horizontal well in Grady County., 13 &24 7N-6W. Nice article in the todays Daily Oklahoman business section on their first multi unit well in Blaine County
Thought I would share this info…anyone with a lease with devon, they just sent division orders after just 3 months of completing the wells in Canadian county. Last time it took 5 months…guess they hired more people…now the real wait begins…what will the check look like!
Thank you all for good answers to my questions
Stephanie would you mind one more? Say I own 100 nma (wish I did) 75 have marketable title, 25 are in question and may be subject to litigation. Will I be paid royaltys on the 75 while the 25 are still in question. They were deeded seperately.
Michael, by law, atleast in Oklahoma, royalties cannot be withheld on marketable title. If they do not release that portion bring it to their attention.
Michael, I agree with Stephanie. I’ve been told that the oil companies must timely pay royalties to those having marketable title … and where the title is in dispute, those disputed royalties must get timely paid out too – but into an escrow account. In your example, those claiming “ownership” of the disputed 25 net mineral acres would need to battle out – and prove – their rights to then obtain the escrow fund’s royalties … and all future royalties from that same acreage, too. Andy
Tom, the Ricker 1-32H has the surface location in 5-13n/9w with the horzonal going north and the completion interval in 32-14n/9w. Don’t worry about what I said below because Devon has already drilled. That well was completed in June 2011. Location excps. must be for additional wells. If you own in 32 you should be receiving royaltys by now.
Cheryl they probably put all their paperwork into rush mod the last month because they strated there move into their new super skyscraper in Downtown Okla. City today, front page story. Maybe since Continental is moving into Okla. City also they will take a hint from Devon and get ahead of schedule.
Cheryl, You can get them online. I’ve got google alerts set-up to notify me when anything I’m interested in gets published. Got daily energy prices on my home page. Now all I need is that first check too!
Richard, you notice she said last time she got Div. orders? Must be nice!!