Garvin County, OK - Oil & Gas Discussion archives

Ruth,

Not a direct offset, but Rimrock pooled Section 36 2N 2W in July of 2017 at: $1,000 for a 1/8th royalty; $700 for a 3/16 royalty; and $500 for a 1/5 royalty. The order allowed different elections on the two different formations, so you have to add the $ for both formations to arrive at the total.

If the offer you received is for a 5 year lease, you might want to look around for a better offer. Do you mind sharing who made the offer?

Hill Land Management from Edmond, OK

3 yr lease with a 2 yr option

34-1N-1W is opening up due to well being plugged and Continental has been offering $1000 for 1/5 royalty and a 5 year lease.

Did Continental ever drill the well in 27 & 28 of 1N-1W?

Laura: Yes, just finished fracking about 2 weeks ago.

I'm new to the group but have mineral rights in Section 3, 4N, 1E in Garvin County and have recently been approached about leasing my interests. Would appreciate any information on activity in the area, lease bonus rates, etc. Also is there a standard oil and gas lease that most use? Thanks!

Kathy, welcome to the forum.

There is no standard oil and gas lease. You might have one offered to you that is labeled Producers 88 making you think that there is one, but there is not. Legend has it that the name comes from a printer that happened to have job #88 posted on a lease decades ago when they printed it. The first lease that you will be offered by a lessee will most likely need some negotiation as it will probably not be in the mineral owner's favor.

That area has been very quiet for many years. Ranken has a pooling pending in sec 5, so the rates from that pooling will give you an indication for what yours should be. The hearing date is supposed to be April 17, so wait for that news before moving ahead on anything in your section. They are trying to pool for the Deese, Viola, First and Second Bromide on a 40 ac spacing. The last well drilled in the township was in section 8 in April of 2017 by Ranken. it was tested with 1 bbl of oil in the Viola, so not good.

Has anyone received DOs on Antero well in section 7 3N3W?

Karla, my family has a small interest there, haven’t seen anything yet.

Has anyone heard of Milestone Oil & Gas, LLC, out of OKC ? They are trying to lease some mineral from a friend, and I can't find anything on them. They list a p.o. box number as box2266 and a zip of 73101. Nothing pops up on Google though.

Lanny-no, probably because they are a new company. The address you list may be a drop box, not a real address. Try:

Name: MILESTONE OIL & GAS, LLC

Effective: 21 Feb 2018

Address: 8296 E 35TH ST

TULSA OK 74145 74145

CODY M LOEPP

Thanks Frank !

Has anyone received any info on MCCAA 1-30-19H in Garvin County. It has been over 7 months since they started selling oil and gas. So far no division orders or check. Does anyone have any contacts at Rimrock Resources? Will they have to pay interest?

I've seen people in the know on here say that if the company doesn't start paying you within 6 months of the time of first sale of oil and gas that they will have to pay you 10 % interest retroactive to the time they first sold off of that well. I believe they also said you have to write them a letter stating that you want them to pay you that interest owed you. Best Wishes with this Don. That's really good interest so it may be a blessing in the long run but I'm always anxious to get those checks started.

Relevant portions from Oklahoma Royalty Payment Statute:

  • 52-570.10. Payment of proceeds from sale of oil and gas production.
  1. Except as otherwise provided in this section:
  2. Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:
  3. commencing not later than six (6) months after the date of first sale, and
  4. thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.
  5. Notwithstanding paragraph 1 above, royalty proceeds from the sale of gas production from an oil or gas well remitted to the operator pursuant to subsection B of Section 570.4 of this title shall be paid to persons legally entitled thereto:
  6. commencing not later than six (6) months after the date of first sale, and
  7. thereafter not later than the last day of the third succeeding month after the end of the month within which such production is sold; provided, however, when proceeds are received by the operator in its capacity as a producing owner, the operator may pay the royalty share of such proceeds to the royalty interest owners legally entitled thereto at the same time that it pays the royalty proceeds received from other producing owners for the same production month, but not later than the last day of the third succeeding month after the end of the month within which such production was sold.
  8. 1. Except as otherwise provided in paragraph 2 of this subsection, where proceeds from the sale of oil or gas production or some portion of such proceeds are not paid prior to the end of the applicable time periods provided in this section, that portion not timely paid shall earn interest at the rate of twelve percent (12%) per annum to be compounded annually, calculated from the end of the month in which such production is sold until the day paid.
  9. a. Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn interest at the rate of six percent (6%) per annum to be compounded annually, calculated from the end of the month in which such production was sold until such time as the title to such interest becomes marketable. Marketability of title shall be determined in accordance with the then current title examination standards of the Oklahoma Bar Association.
  10. Where marketability has remained uncured for a period of one hundred twenty (120) days from the date payment is due under this section, any person claiming to own the right to receive proceeds which have not been paid because of unmarketable title may require the holder of such proceeds to interplead the proceeds and all accrued interest into court for a determination of the persons legally entitled thereto. Upon payment into court the holder of such proceeds shall be relieved of any further liability for the proper payment of such proceeds and interest thereon.

I stand corrected...thanks Darla. It was 12% rather than 10% and that is if there is no problem with proof of title.

Darla,

Just an FYI, there are some changes to 570.10 coming in November.

HB2775 has been signed. It primarily impacts non-marketable title interest basing it on prime interest rates.

It also forces Marketable rate on those portions of the property without title defect. Say you have two tracts in the same well obtained at two different times, the have to pay the part that is marketable.

It also now mentions Affidavit of Heirship. However, "acceptable" is still there, so the operator will have to determine their risk exposure. I don't really think we will see any changes because of this.

Oops I meant to include a link to the bill

https://legiscan.com/OK/text/HB2775/2018

Thank you Linda and Darla. I will be writing a letter. Rimrock does not respond to any mode of communication. I believe the Corporation Commisson will sometimes get involved if operators don,t pay in a timely manner.