Grady County, OK - General Discussion


Becky E: I just got a small payment from TEP Anadarko after several months with no payments, so, yes, I am experiencing the same delays----Vanguard was the only company that paid me regularly. The amounts are so low now that I haven’t checked to see what the Post Prod charges are–when there should be none. M Barnes suggested sending my Lease (certified) to the company which I am going to do now-----new owners will maybe get it right–that’s a maybe! Just also joined NARO.


What is NARO? Something to do with owners rights I’m assuming!?


National Association of Mineral Owners----appear to have great seminars which I have yet to attend…hope to get to one in OK as I can also visit friends and take a trip to a family cemetery at War Eagle, ARK—love going there.


Thanks m_denney: It would probably be beneficial for me to attempt to locate the leases on the mineral rights I purchased. I got them from my stepmother who was in the process of beginning a sale to a random company that made an offer and I had some assistance looking at them from the board here and made the decision to invest. Unfortunately, other than knowing the legal description of the property and back-tracking to get the ownership changed over, I know little more than that. I do have lots of notes on how to check into things, etc. because we still have several other items of hers we need to handle. Would it be as simple as sending a request for a copy of the lease agreement to the companies I’m receiving royalties from? TEP Anadarko had actually been the most consistent in payout until just this past month. The others (Camino and Ward Petroleum for me) were the ones I have that came in randomly and were small payouts.


Decided to keep digging a little more on this and looks like the delay MAY be that we should actually now be paid by Red Rocks rather than TEP Anadarko - the wells I’m looking at in 20-5N-5W were transferred back effective May 2018 based on the records I found with OCC. I’m guessing we should see something soon on this.


Yes, NARO is the National Association of Royalty Owners. They have chapters in most of the big oil and gas states (although some are regions of states). The OK meeting is usually in the spring in April or May and the national meeting is October 17 in Denver this year. All sorts of folks from OK and around the country come. Excellent talks, networking and a wonderful learning opportunity.

On the small payments. You may have to go back to your original Division Order. Most of them say a minimum of $100 or once a year. I change mine to say $25 so I can keep track of those piddly wells and get more frequent payments. You can check your wells on the OCC website and see if they have been sold to another operator. May be a bit behind, but at least you will know if it is posted. Look for Form 1073.


I currently have an Oil & Gas lease in Grady County, Sec17 6N 8W and have learned that there are 3 wells producing there (spud dates 11/17, 4/18 & 5/18) My royalties currently don’t reflect production from these wells. What is the best way to find out when I might expect to see royalty checks from a well’s production? I am unclear on the timeline for this to occur. Should I look for a local Oil & Gas attorney to help me?


Rebellion has sold out and formed Rebellion II. They will focus in the Powder River Basin.


Thanks Jimbo. I remember the company was made up of Samson refugees and seemed to have a lot of PE money behind them at one time.




I currently have an Oil & Gas lease in Grady County, Sec17 6N 8W and have learned that there are 3 wells producing there (spud dates 11/17, 4/18 & 5/18) My royalties currently don’t reflect production from these wells. What is the best way to find out when I might expect to see royalty checks from a well’s production? I am unclear on the timeline for this to occur. Should I look for a local Oil & Gas attorney to help me?

You do not need an attorney at this point. It takes approximately four-five months to drill an extended reach well. Then it take another five months to get the Division Orders out. They are required by statute to pay you six months after first sales. There may a couple of weeks slide on that due to what day the company cuts their checks. If they don’t pay on time, they owe you 12% interest if your title is clear and 6% if it needs some more legal work.

Schenk Trust 1-17HXL was active as of 1/23/18.

Schenk Trust 2-17HXL was active as of 8/8/18.

Schenk Trust 3-17HXL was active as of 8/8/18.

You can see the production on the tax site.

You can send a certified return receipt letter to Unit Petroleum, the operator and request payment for the Schenk Trust 1-17HXL and remind them of their statutory interest. They have every incentive to get you into pay status. There are 407 owners, so it could take a while to get all those titles run.

Each of those wells is a different distance, so the split between 17 and 20 will be different for each well as far as your decimal interest. The OCC will issue a final finding on the splits. I see them starting to come out in August 2018 for the first well. You should hear from them soon, but a civil first letter doesn’t hurt. Keep a copy of your letter and the green return card.

You won’t get paid on the other two until their six month time frame runs out. But the title work from the first well will make it easier for them.


Does anyone know anything about the norge-marchand unit no 1,2 or 3-6N-8W.

I’ve never been able to find a completion report on any of these wells-is that because they are drilled in an old water flood unit? Lime Rock Resources recently announced a new well- norge-marchand unit no-4-33 1H in Sec. 4-6N-8W (NE/4).

If anyone knows anything on any of these wells it would appreciated-i’ve got interest in Sec 4-6N-8W


Type in Norge in the Unit name and you will find quite a few files. Open the various files and you will find the original maps and which of the old wells were included. It was in 1975 if I remember correctly. The old wells have their original name and the unitized wells have the Norge Marchand Unit… or NMU name. Section 2 and 3 have quite a few.

You can look up the wells in the OCC well files area.

Several companies are going back into the old waterflood units and drilling horizontal wells in different horizons. The unitization agreement will tell what controls the new wells. You can find the permit for the Norge-Marchand Unit 4-33 1H in the wells files area on the OGWellRecords link I just showed above. Type in 0406N08W. Map in the permit.


Thank you for this wealth of information!
I did send the operator a nice email inquiry and was told my information was sent along to the Division Order Department. When I asked if I could contact them directly, I was told an analyst would be in contact with me shortly as I had “funds in suspense”, whatever that means.


That means that they know about you, but you have a title issue that needs to be clarified. They will get in touch and let you know what you need to do to “cure” the title defect.


They may know about me now, but they don’t seem to be in any rush to clear up the issue. Does it typically take weeks after I notified them? I did recently receive a Notice of continuance regarding a hearing for relief sought for a horizontal well.


It does take awhile to clear things up. If you inherited, then you probably need to send them an email, letter by certified return receipt mail and a phone call about every three weeks to get paid for the wells that are already producing. The horizontal well will not pay royalties for about another year and you probably don’t want to wait that long to get your old payments fixed. They may need probate documents or affidavit of heirship or something like that.


Thank you again for your reply. The frustrating part here is that I am already receiving royalty checks for 2 other wells in the same section so I am not sure why they would have any issue with my papers. Can you recommend an oil & gas attorney in the area? I would feel a lot better having some feet on the street to dig further.


That would be frustrating. You might want to use the search icon (magnifying glass) and type in “attorney” . Folks may be able to recommend one.


Attorney Kerry Caywood is who my family uses. His phone number is (405) 224-0386. Or Attorney Timothy Dowd out of Oklahoma City is another who lots of people recommend.


I am currently using the same firm with Mr Perryman and a probate.