Continental Resources, Carter Co, Sec 8, 2S2W

Can anyone comment on this situation. I received a bonus and lease offer from Osage 1 1/2 years ago, and then told it went to Echo and lastly that it was now Continental. We didn’t sign with Osage as we could never get a few questions answered. Continental is now saying we are pooled b/c we didn’t sign with Osage (absurd as we planned to after our questions were answered). I’ve also been told it is HBP for Wildcat Jim Penn unit, but that operator told ne theirs is for shallow wells and Continental wants deeper access. Can Continental force me into pooling when they’ve never offered a lease? If it is HBP and we don’t therefore get a bonus, are we paid at the same % rate as our Wildcat Jim Penn unit lease? Thanks for any help.

Not giving legal advice, but go back and look at your really old lease or pooling for the section that is held by the Wildcat Jim Penn Unit. You have to see if you were leased to full depth, or force pooled just for a shallow unit. Then you have to see if the Unit is only a shallow unit or holds more than one horizon.

I see a pooling back in 1996 and one in 2006. Nothing since then with an order. I only see five new leases in the last year and none of them were with Osage. I went back to 2001 and none of the leases were with Osage (as now listed-Echo may have bought them) Citation can tell you if you are held all the way or just for a certain horizon. Are you getting royalties for the unit now?

Not sure why CLR thinks you are pooled. Ask them what pooling order and date and that will be a clue. Echo has a pending pooling, but no orders. Casillas had a pooling order, but it was dismissed. Did you get any pooling papers in the last two years? The recent ones were 201802236 and 201806974 and 201802247. Look them up here OAP and see if your name is on any of them.

If you are truly HBP, then you will be held by the terms of the original lease. If your ancestor was force pooled just for a shallow horizon, then you could be open to lease. There are other folks out there leasing besides Continental. You could try to get a lease with any of them.

We have very old leases in that area as well. Held to the center of the earth. You are probably held by the old leases. Ask the questions I mentioned above. It could be that the leasing agent was confusing you with another person. They handle hundreds of folks at a time and it could happen. If they can’t tell you what pooling order it was, they may be mistaken. Just keep asking questions. Other lessees besides Continental out there. If you are held, no one will contact you since it wouldn’t make sense to do so.