received a notice from OXY today stating that they are filing an application with the RRC for a permit to commingle oil and gas production from several leases.. does anyone know what this is and the effects on production?
it will take a while for me to get this information together..i was in on the ground floor of the Chevron deal which really started about1999. Also, last night I was contacted by a landman wanting to my Minerals under that entire area they are about to really jump into...not sure where they are on the gas line project.
This landmans dad is a somekind of project manager for OXY.
But I will do my best to piece this together, it involves several companies.
I disagree that OXY will prevail as to approval in commingling several leases together unless lease are part of a secondary recovery unit. The operator has to attempt to allocate production on a daily basis from each lease.
This can be a nightmare. For example there are 10 wells here and two of these wells are producing on your lease an the other eight wells are down or some number less than the eight due to mechanical problems thus your percentage of oil and gas sales has to be allocated properly. The old school is a tank battery lease, not high tech measurement that may not be accurate at all times.
You can send a letter to RRC and state a protest as to OXY's application for commingling. I made a protest and probably others did. This resulted in the RRC disapproval.
Ledlie.. what counties do you mainly operate in? Do you have anything in Roger Mills County?