Has anybody done business with ProMinerals Partners?
My lease states “the over-riding royalty interest reserved herby shall be free and clear of all costs of exploration, drilling, producing, separating, treating, marketing taxes, but shall bear its proportionate part of al production, severance or other similar taxes.” These items are being deducted on my checks: processing, gathering, transportation, and fuel. Are these part of the post production costs that I should be bearing?
If your lease said no deductions, then you should not have any taken out. If you did not have that clause in there, then they will take it out. Production and severance taxes are normal unless you write them out as well but usually only massive acreage owners can get those taken off. You may have to start fussing….
Thanks, Martha, that is what I thought. It would seem that processing, gathering, transportation and fuel would be considered part of the production expense. I think I will start fussing!
I will do exactly this! I have contacted the analyst and faxed a copy of the original lease to the Revenue Department about ten days ago and she responded that she would look into the situation. If I have not heard back from her next week I will start sending certified letters. I appreciate your help.
The basic problem with most of these discrepancies is that the revenue department does not talk to the legal department. The accounting software is set to take out deductions, so if the mineral owner doesn’t catch it and report it to the revenue guys, they are not going to fix it on their own. Be sure you have a copy of the lease when you start fussing! Get your owner number and the property number off of the DO or the stub of the royalty check. Keep track of everything you send them. You need a paper trail. Send certified. This is when email is not necessarily a good idea. You can start with one to the revenue department to see who you should contact, but keep a copy of that email. Then go with paper from there.
http://seekingalpha.com/article/2527075-devon-energy-and-cimarex-en… Interesting article about the Cana
Wow! Very interesting!
The cause below is a spacing order, not a pooling order. It sets out the allowable spacing units and as is common, will do quite a few reservoirs at once.
What exactly do you want to know?
I have a question reqarding Leasing V Pooling/Orders. If you lease your land without a depth clause and they pool/drill/complete a well does this mean the hold all the formations? Even if the pooling/order does not contain a certain formation below the completed well?
If you lease with no depth clause, the company owns to the center of the earth. They hold all formations. If they pool, then they only hold the zones they pooled. Your acreage is held by whichever document you went with.
However, in some instances, the company might have a very broad definition of a particular zone. This is where is gets complicated.
So the application veould be pooling order. Looking for woodford. This well was completed in springer then recompleted in 2008 further up hole in deese. Want to know chance of them releasing formations below springer.
Well I am glad to hear that. Back in May 2014 Devon sent me paperwork showing they requested and obtained permission to drill a horizontal well into the Hoxbar common source of supply for section 35-13N-9W. I was upset because they had originally obtained permission to drill 4 more wells there and had that order vacated. Maybe they are still planning to drill that one… The depth listed for the well was 8150 feet looking for oil. I figured with price of oil so low they would never drill at this time.
Anybody familiar with the Hoxbar formation? Devon is drilling to the hoxbar in 34 13 9 Canadian Co. http://imaging.occeweb.com/OG/Well%20Records/1DD2AA6D.pdf
I inherited mineral interests in some wells in Okla. Some are participating interests. I receive a “net invoice” for my share of expenses after application of the income. Over the past 3 years, the revenue has exceeded the expenses only a couple of times. Is this typical? Seems like they are loading up on applying their overhead on wells that are on life support. Can anything be done to make them either produce so they are profitable, or plug these wells? Comments appreciated.
Ah, the joys of being a “working interest”…They probably are trying to hold the properties for future development of additional wells and its not economic to drill as is, and they don’t want to cease production or the mineral owners will get their property back. So I would examine the underlying interest. Do you have a large acreage position? How many more wells could be drilled in that unit? (What is the total remaining reserves in that drilling unit) If you have a unit that is already exploited then I’d give it up at some point. But if there are still wells to be drilled, I’d hang on as long as possible. Of course, when a new well is proposed, you will have to swallow big and cough up a bundle.
Received paperwork for increased density where we have 5 wells in Canadian county. Also received paperwork for relief sought: separate allowable. I understand increased density but what is separate allowable? Thank you.
Separate allowable is a good thing for royalty owners. Then each well gets to produce what they are allowed and not have to choke back and share with other wells.
The OCC decides what is best for the prudent production of the reservoir. Sometimes slow and easy is the best, sometimes quicker is best. Depends upon the geology.
Separate allowable is the amount of oil or gas that each well is allowed to produce per month under the regulations of the OCC. It is determined by reservoir, spacing, depth, etc. Sometimes wells have to share an allowable for an area and sometimes they each get their own. Read the paperwork to see what they are asking for. Sounds like each well will get their own (without me reading it.)