Just received a revised divsion order for a well that chesapeake has in section 7 3N3W. From what I can tell the welln is shut in. Did they just send this because I recently inherited it and a new owner? MI 8/13. could that be right. my share is .00113415. Is that good if they drill deeper and it starts producing. IF I remember someone said that chesapeake made a deal with Merit for everything deeper. I also have a well that merit has in that same section that is producing.
Linda, I have minerals in 1N 2W and 1N 3W. Iāll have to check that rig out.
I have worked the numbers and I must have 8 acres. Like I said I am new at this and I donāt have my mom to ask questions. The numbers work. I also believe that only have 50 % of that.
Hutch, how do you know for sure how many acres you actually have? I just have the sections not specific acres.
Karla, do you know the size of the unit (like 640 acres) and how many acres you own? Would also need to know if you own 8 out of 13 acres because that fraction doesnāt sound right for a royalty%.
Karla, for 80 of 160ac your net royalty should be way more than that. The 8/13 thing is reducing it but so far I canāt make those numbers work. Iāll work on it some more but I need a nap first!
I swear this is like insurance they donāt want you to understand!!!
He will probably answer when he gets up from his nap!
I figured you were resting on your laurels or all the money you made on your minerals!
Thanks M. Barnes and Linda for your response. You have confirmed what I thought in the past, but just got another notice and decided it would be good to ask the āexpertsā on this forum.
Vicki, on the OCC website (home page) go to Dockets & agendas on the right hand side. Click on docket results; then November 6 on the Tulsa docket.
Thanks Hutch. Do you always sign a revised division order when they put it in your name? I donāt want to sign something that locks me into 1/8 if and when they dig deeper.
Weāre oldā¦or at least I am, I better not speak for Rick!
Karla I just got up from my nap but Iām heading to dinner. It will have to wait a bit.
When leasing interests to an operator planning a deep horizontal well, do folks feel that a typical lease needs any modification unique to the nature of the well rather than a more traditional vertical well?
An expert I am not, but M. Barnes and some of the others are!
Karla,
Division orders after July 1, 1989 cannot change the terms of the lease. However, to avoid conflict I prefer to use the NADOA model Division order anytime Iām sent a complex or confusing division order. http://www.nadoa.org/forms/div_ord.pdf I also donāt put a social (or in our case a business EIN) on the division order. Instead I include a W9 with the information. Some will fight the NADOA form, but Oklahoma law does not require a signed division order. Regardless, you have to pick and choose your battles. Since it cannot change the lease, I try to not make it that difficult a process.
If the 0.00113415 is correct and is based on 1/8 RI, then your ownership is 1.451712 Net Mineral Acres (NMA). 0.967808 NMA if it is based on a 3/16 lease. I donāt have a clue where the ā8/13sā number you quoted fits in.
You could ask to be placed in touch with the division order analyst and they might give you the NMA owned and further might tell you a bit more about the ownership. Donāt expect much info and they are not really required to provide documentation or prove the numbers.
If you want additional information you will likely have to go to the Garvin Co courthouse to research the records (or pay someone to do the same). A full ownership report of your interest would turn up the correct numbers but could be time consuming (or expensive). You might go back a bit and try to locate probate documents in your title chain. They are not always 100% correct, but you may go back a couple of generations and find an accurate description and work it from there.
Signing a division order will not lock you in for 1/8 RI on future wells. That is decided by the lease. Finding a copy of the lease would be a good thing. You might find it has been held by the original Anadarko wells from the 1950s.
Chris,
Regarding the lease for horizontal wells (or vertical), you should not take the lease form the company will send you. It is entirely in their favor and not that of the mineral owner. Almost every clause is negotiable-although you have more power with more acres. Send me a friend request and I can tell you more.
For everyone on the forum-I just got back from a three day class put on by the TCU Energy Institute and NARO. It was a basic class for mineral owners and was very well done. Class 1 is about Foundations of Mineral Law and how to get your documents in order. Class 2 is Leasing the Mineral Interest (addresses the lease clauses and how they mean different things in different states), Class 3 is Critical Issues after Production Begins (Division Orders (NADOA form), how to make sure you arenāt getting cheated, Estate planning, etc.) Taught by George Wilson. There were about 25 of us in each class. Wide range of folks, mostly mineral owners just like us. Really worth it!
Rick I would appreciate any thoughts? Thanks.
Can someone advise me on whether it is important or not to pay $35 a year to register on the Oklahoma Mineral Owner Registry? I get these notices from time-to-time through the mail. In the past I ignored these, but now that some activity is moving in the area where I inherited mineral rights, Iām wondering if that $35 would be well spent? I get offers often on my minerals, so I figured people could find me without having to register. Thanks for your help in advanceā¦