I called the lawyer’s office and was told that the hearing is put off until July 13th. There is opposition, of which I have seen here on the forum. We will see how it turns out….
Thanks for the update. I have wondered what was going on. Jim B
I was also wondering how this fits into the Constitution provision regarding impairment of obligations in contracts. Any ConLaw experts wish to comment?
Mr. Brock: By no means do I portend to be an attorney, but the OGL you signed granted the lessee the right to unitize the lands. What all goes with that, I don’t know as I don’t know all the legal ins & outs. But I do know that in the long run, your minerals will be entitled to more oil & gas that mean more dollars, with the unitization than without. That is why there are “units” in Oklahoma & Texas that have been producing for 70+ years. In driver’s education class, I was taught to “aim high in steering”. I also know too many people that step over dollars to pick up dimes. I am quite sure you will be rewarded, as will I, by being a part of this Unit. And for the record, I am not affiliated with Continental. I am a mineral and working interest owner in wells in this unit and I welcome it because preserving pressure is the name of the game.
Thanks, Todd. I think you are right on the lease terms. Lately, I have been trying to delete that phrasing, but these are old leases. BTW, my wells in the scoop show no evidence yet of losing pressure. Jim Brock PS: I am too old (91) for the “Mr” appellation. In my second childhood, so call me “Jim”.
PS Todd: Notwithstanding the right to unitize, I wonder if that includes the right to change royalty rates from 3/16 to 1/8. Interesting.
Jim- I don’t think so, but I will research & get back to you. Enjoy the 4th.
As I understand it, the concept of unitization is that an existing pool of oil is owned by several parties whose ownership is combined to permit development of the resource. Efficient development. With all owners then sharing in the production. I assume the pro rata is based on net mineral acres or some other measure common to ownership. This traditionally has been used for water flood operations that extend the useful life of the pool. How does this work for one well at a time?
Hearing before the OCC today.
Motion to produce for interogatories.pdf (111.3 KB)
Notice of hearing to produce for interogatories.pdf (78.2 KB)
Motion to dismiss or stay.pdf (109.8 KB)
CLR motion for other relief.pdf (4.6 MB)
OCC notice of heaing for CLR’s motion.pdf (695.7 KB)
Thanks for the info!
Pat_L - Thx for posting the docs! I’ve been travelling so had not seen the most recent filings. GD
Pat_L: I’m just wondering where you got the documentation above. I haven’t received these in the mail and when I go to the OCC website and put the case number in, nothing dated later than March is showing up. Just wondering if I’m on the wrong site? Or do they take that long to scan them in? Thanks for posting!
I see now that there have been changes to the OCC search site as of March 2022… I have mucked about some and not been successful in finding later documents. I will download the instructions and see if that helps.
go to the documents that were listed above and open each one. The new case number is listed at the top in Red. 2022-000630 is the first one. Essentially, the new numbering system adds a dash and an extra zero.
Got it… I finally found the site…and was successful finding the documents. Thanks
Thanks for the info…why do you think people are opposed to this?
Cheri: For me, it is a matter of timing. My wells are still producing and the proposal would cut my income in two ways: reducing thr royalty to 1/8 from 3/16 and adopting a monthly on-off schedule that cuts productive time in half. I don’t know how much more my income would be cut by sharing across the board. Ultimately, I do understand that more oil will be produced, but at present there is apparently enough pressure to maintain production. Also, I wonder how things work with fracked wells. JimB
I think I’m reading here that S Brock’s understanding is that with the unitization everyone’s royalty interest might go to 1/8th? That would be kind of unfair to those that negotiated a higher interest rate and less or no lease bonus money up front. Or am I misunderstanding something?
Thanks for the replies. I don’t pretend to understand it, but it seems that it would be more production for a longer period of time. It is difficult to know if it would be worth it in the long run, but I think it might be. Hoping for the best for all.