Can anyone shed some light on to what is happening since Continental Resources (CLR) sold and conveyed lease interests in Blaine County to DewBlaine Energy? According to OK County records DewBlaine Energy has purchased a minority share of many lease holdings in Blaine County (maybe elswhere in OK too) and our paychecks have been reduced by about half. We assume the we will get paid on 100% of our production by both CLR and DewBlaine but the OK tax commission is only showing the CLR portion of the total production as being sold to market. We can see on the OCC website that our production for Sec. 32 14N 13W and 28 14N 13W in Blaine county was about double what CLR paid us for on our last checks. So the short question is, has anyone else had their checks from CLR reduced the last few months because of this sale/conveyance and what do we know about when DewBlaine Energy will pay us the remainder of our money? Thanks everyone, Greg Turner and the Hafer family.
My records for the Eichelberger well 1-28-21XH shows volume production same as the Tax Commission records. Lowest month was latest which is June 2017 at 370552 and the highest was in December 2016 at 515272. The gross values do vary differently because of natural gas market prices. My understanding is that gas well production, especially with current horizontal/fracking technology, starts out high in first year, makes a big drop during that year, continues to drop more for next 4 years or so and then pretty much levels out for rest of its life over 15-20 years. (This is general and not well-specific.). In 2014, CLR sold 49.9% interest in 44,000 acres with 37 producing wells primarily in Blaine and Dewey counties to DewBlaine. The deal is that CLR will be operator for all wells and DewBlaine Energy will pay to carry 50% of CLR’s future drilling and completion costs. (DewBlaine Energy is the US subsidiary of SK, a South Korean holding company.). Note that you may receive two replies saying essentialy same thing from me but I think the first may have gone to internet netherland because I can’t find it. Hope this info helps…Sharen
Parse your check stub and see if you are getting paid right. Check the cost of transportation. If deduction is over 5% of gross, you are being swindled. Time for an audit.
or, The well may be shut in or choked back due to glut of gas and lack of summer market
Thank you for your response Sharen. You are correct Sec. 28-21 production does match tax records as well as our recent pay stubs. All three match for now on section 28. The other Section I noted 32 14N 13W in Blaine County the production DOES NOT match the tax records or pay stub. CLR sold / conveyed lease rights to DewBlaine Energy for both of these sections in June, July, August 2017. So I'm really looking to get a response from someone that has been impacted from these sales / conveyances just like us in these specific areas in Blaine County and find out if they are getting checks from DewBlaine Energy and CLR on their total production. Thanks again, GT
DewBlaine is a partner with Continental. You won't get anything paid to you from them.
This is a 1280 acre unit so you will get paid on only 1/2 of the total production due to your section
representing 50% of the unit.
Todd M. Baker