We are inheriting our Mothers mineral rights that are located in 3 counties, Custer, Blaine and Dewey county. There are wells that are producing and some that are not. While the probate is being processed, there is one section SW/4 of Sec 26-14N-16W, Custer county, OK that the lease is open. We understand that Continental Resources took a number of leases in 2015 and 2016, oddly my Mothers lease was not renewed. What does that indicate and can her share be forced pulled?
If her lease was not renewed, then she is open for leasing or forced pooling. No wells have been drilled since then. Balboa Production Company was leasing a bit in 9/2018.
If the probate is filed and a personal representative has been appointed, then it is possible to have the court approve a lease. Most probate cases I handle qualify for an expedited procedure so they are completed so soon that the expense of court approval is rarely worthwhile.
Thank you M. Barnes for that information. Are there sites that I can go into to see current information on my Mothers wells that are under production? Also, we had an appraisal done on the mineral rights and the 6 tracts Mother owned there are two leases is one lease in and under NE/4 of Sec 24-16N-14W, Dewy county, OK, HBP by the Matli Brothers 2-24-1 well and by the Preston 1-24H both operated by Continental Resources that does not have a Mittelsteadt clause within the lease. Can we, after probate, re negotiate this lease for both wells to include the clause so that there will be no production cost deducted since my Mother has passed away and those leases were with her?
Thank you Ricahrd Winblad. Unfortunaetly my Mothers will was silent on the minerals and we have been going thru an atty. out in OK to retain the minerals. What is the expedited procedure you are talking about? There is another thing I am apprehensive about too, rather than the probate being processed in the county where my Mother ownes assets everything is being done in OK city, am being informed that this is OK as long as no one disputes it. But that is a legal issue and probablty should not be addressed on this mineral forum. I just hope and pray it does not develope into another issue that needs fixed. .
M. Barnes, I just looked at the appraisal and the appraiser states "these appear to be open as they were last leased in 2011 to Meadows Oil and Gas. " Are you saying that Balboa Production Company is not leasing, would that be leasing from the same well? Sorry, I am confused. The appraiser also states that my Mothers lack of lease may indicate a potential title issue?? He did the appraisal so would he not see that my Mother owns a share in that well for the mineral rights? Thanks in advance for your response.
I meant leasing…not “Not leasng”…sorry!
Every attorney does things a bit different. I tend to use summary probate when possible. Some attorney’s prefer a traditional probate for a variety of reasons. No criticism here. If nobody objects the Oklahoma probate should be fine.
Thank you Richard Winblad, my atty told me the same thing after doing some research on it. It seems very strange to me to have property and mineral rights in one county which is where all deed work etc should be done thru the courthouse rather than well over 100 miles away in a different county.
You may be confusing terms. Mineral tracts are description of the minerals. They may or may not have a lease attached to them. Leases can be from the “heavens above to hell below” which means everything is leased or you can have leases that have depth restrictions on them. You have to read them to see. Tracts can also be unleashed.
No, once you are held by a well, you cannot change the terms of the lease as long as production holds those tracts.
SW/4 of Sec 26-14N-16W, Custer county, OK The mineral rights appear to not be leased.
Are there sites that I can go into to see current information on my Mothers wells that are under production? Yes, you can check the production in the OK tax site. You can search by well name or location Gross Production
You can find the documents that go with a well in the OCC well records site. Search by the surface location or well name. Test
Thanks for that information on the terms of the lease . does that even apply to leases where the lessee dies? So we as beneficiaries cannot renegotiate any leases that are under my mothers name?
Sad, but true. The lease goes with the minerals. Once there is production under the terms of the lease, that original lease holds until production ceases. The primary term is the first part, often three years, in which they have time to drill, but do not have to drill. If they drill and the well is economic, then the lease goes into the secondary term which remains as long as their is production from that well or others under the terms of the lease. If they drill and no production is established, then the lease will expire under its own terms and you are free to lease again (and usually get better terms the next time.)
Thank you so much for that information. Not what I wanted to hear as the royalties are being charged for production. But I really appreciate all this information.
Sorry to say, but I have some of those old inherited leases with bad language as well. Just grateful to have “something” instead of “nothing”.
I am looking at the site for the OK tax Commission now and trying to learn how that works to use it. I’m gong thru the help screens now. Can you recommend any resources in terms of books, etc. that I can learn about the entire process of leasing minerals and mineral ownership?
The OCC has several publications on their website. You can download them in .pdf form. NARO (National Association of Royalty Owners) is a great source. They have several books on their website. www.naro-us.org A good one is “Look before you Lease” by Jim Stafford.
Read the Mineral Help Tab above. Ask tons of questions. The forum is a good place to learn. NARO has state conventions that are quite useful. They also have a Minerals 101 class on their uTube channel.
Thanks for those resources, I will absolutely use them.
Actually, I have been putting together pictures of my grandparents and ancestors from OK and I have a picture of my grandmother and on the back of the picture it states she was attending a meeting for the National Asociation of Royalty Owners! I didn’t know what that was. I thought it has something to do with the Queen of England or something! Isn’t that something, well now I know…what a chuckle for me!