Greetings.I have friends who have an old oil well that hasn't produced for years and a gas well on the same quarter that has had the meter removed and no royalty checks for 2+years or better.They were told by the C Comm.that it was held by production. They were also told that the legislature passed this back in 1982.Property is in the NW/4 of 14-21N-7W.I.M. Garfield County. What should they do to get their lease back?Thanks, Bob
Bob:
For starts, tell your friends to locate their original lease and read the document very careful. If they don't understand the meaning of the wording, advise them to locate someone who can correctly read and advise on where they stand at this point based on the current conditions.
Bob
Why would he want them to get their lease back? I would force a release and go with someone more aggressive.
Tom
Tom,
Explain to Bob how to force a release which I imagine is what Bob meant when he said get their lease back he meant the same as getting the interest released from the lease.
Bob, just because they have not received any royalty checks for 2 years doesn't necessarily mean there is not a producing well. How do you know for a fact the oil well is not producing, have they been looking inside the tank battery and you didn't say but why does the OCC say it is hbp, did they not ask the OCC why or how it's hbp, there had to have been a reason that you didn't mention? Is this tract part of a large unit that covers more than that quarter or section? I own a small interest of minerals in a large unit and they only send a check about every few years as there is little production and I own only a small interest in the unit so it takes forever before the minimum amount payment requirement is met that is in the lease. There are details your not mentioning and like Charles said, read the lease as if like OCC said, it is producing then what are the requirements on royalty payments. If OCC says it is hbp by a gas well ask them the production figures and dates, if producing oil call the tax commission and find out the oil production figures.
Thanks, Guys. I will pass this on. Bob
This section is not part of a larger unit and it appears there has not been any reported production since 8/2011. I'm assuming the well they are referring to is the A Anderson 2-14. It was completed as a Mississippi oil well but has not shown any production other than small amounts of gas since at least 2000.
The well was transferred twice in 2012, the current owner is OK Swabbing, Inc., P.O. Box 835, Hennessey, OK 73742.
I happen to know some people that bought a couple of leases in this section last year. I am not sure if either lease was in the NW/4.
I don't understand how OCC would say it is hbp and believe it is so from a well that has not produced since 2000. Also, sometimes that don't have the reported oil production unless it is turned in with gas production, only tax commission will. But still I don't see why they say it is hbp without reason.
I'm checking tax commission also. Tax commission actually has the well as being in the SW/4 SW/4. However, there has never been a completion in the SW/4 with a name anywhere close to the Anderson. I attached to Tax Commission numbers. Just because they say it is active does not mean there is not a mistake. I would call the operator and see what they have to say.
2564-AAnderson2TaxComm.xlsx (11.1 KB)Hi Scott,
Just curious where you got the Ok Tax Commissions spread sheet on that well.
Pangaea, I have a subscription service. I'm a Landman and have to use them daily.
http://www.pangaeadata.com/Logon.aspx?ReturnUrl=%2fWellSearch.aspx
I also meant to say that I suspect Oklahoma Swabbing is a plugging company. Do not know that for sure, but I know there are a few right in Hennessey.
Never used Pangaea so didn't know where it came from. How do you like Pangaea compared to Drilling Info. or have you used it.
I have used Drilling Info but have never had my own account. Pangaea has a ton of information but is specific to Oklahoma. You can get all filings such as poolings, intents, spacings, loc. exceptions, etc.
Some of the other things they provide are current leasing activity that you can search by section or just County. I've been a Field Landman most of my career, so I have spent a lot of time running title and preparing ownership reports. They allow you to search respondents lists on any Order filed in the State, that comes in very handy when trying to find contact information on people. They also allow you to define areas of interest and then every time a new filing is made you receive an email.
Pangaea only has production info back to 2000 though, I believe you can go back further with Drilling Info.
Hey guys. The well is the Isbell 14-21-7 W.I.M. in the NE 1/4. Thanks, Bob
Scott,
Thanks for the information. So for Oklahoma it sounds like you like Pangaea better. Everything you mentioned is available for free except for leases in a few counties but having it all in one sight might be handy. I was interested from the oil production reporting and that is supposed to be available for free soon also. I am thinking Pangaea and Drilling Info are about the same price for Oklahoma.
Bob,
So there really is a producing well and the owner was wrong?
The Isabell 1 was completed as an oil well in the Mississippi formation on 12/08/1964.
The Isabell 2 was completed as an oil well in the Mississippi formation on 4/12/1975, then reclassified as a gas well.
Cant find pluggings on either well.
Oklahoma tax commission shows that there are two wells on the lease (one in NE/4 and one in SW/4), that they were tanked together but that they are "inactive."
Last reported production on tax commission is 159.23 bbls of oil in 09/2010 and 1.08 mmcf of gas in June 2010.
Last reported production by Corporation Commission is 2/2010, but they report it as active.
Attached is a spreadsheet with production info. Tax Commission on one tab and Corp Commission on the other.
It appears your operator is Jay Resources Corporation or Jay Management Company. They are out of Houston.
2563-Isabell.xlsx (15.5 KB)Mineral Joe,
You might consider IHS if all you are looking for is production reports. Reports run about $5-$9. If you search or run a report the minimum billing for that month is $25. So run 2-3 reports before the month is complete to get your value. No searches, no bill for the month.
Yes, Most of what you get from Pangaea or DI is available from other places for free. However, it saves so much time you would be amazed. Production, and the ability to set up searches that notify you of activity in the area of interest to you area added features.
Both have weak and strong points when you compare them. And yes, the price is about the same if you compare an Oklahoma only DI account.
Pangaea searches on BHL and is pretty reliable until you get to a complex unitized field running 4-12 sections.
DI search on leases give you the dates the lessor and lessee info, as well as the RI from the lease. But they do not list all of the leases if they are similar and are filed near or on the same date. I call this a failure on their part.
Pangaea, lists the leases but with limited info
Both rely on scouts to go to the counties and get the lease info. Some counties will be more updated more often than others. They don’t seem to use the same scout info as the dates covered vary.
DI allows much better consolidated search capability. A search in DI on a section can give me leases, permits, completions, production, active and inactive wells, Applications and orders, Pluggins, etc. Once the search is conducted I can tab between the results. With Pangaea you have to run a query for each search, but some of the above are grouped.
Some of the older wells are not loaded in Pangaea
Pangea has better links to the raw documents at OCC.
DI puts it in a better format. For instance much of the raw data is entered in a database format and is exportable. You can build a nicer production report to give to a client in DI.
Some of Pangaea queries are limited by date or other factors. It you are looking for permits issued for a county you can only go back 6 months. You can’t search on permits by an operator state wide etc.
DI has a much better search engine and interface
DI can display searched points on a map. However the ability to filter those searches are limited. It suck to look at a section map when you are interested in 10 wells and you cannot filter out the other 40 dry holes and plugged wells from history. You can filter in table views but not the map generated.
If I had to give one up, I’m not sure which one it would be.
I forgot, the biggest plus is that none of the above uses JInitiator