Kern County, CA - Oil & Gas Discussion archives

I just forund out I own mineral rights in Kern County. Mineral rights lease doesn't sound promising. Hitting oil does. Anyone have a "time line" from setting up the right to hitting oil? I have no idea and am looking for a "ballpark" number

With regard to a timeline for "hitting oil," the term of the lease dictates this. For example, in a typical lease if you have a five year primary term, the oil company must drill and begin to produce oil in paying quantities within that five year time frame. The secondary term only begins and continues if the oil company is either drilling or producing in paying quantities after five years. This is how the lease is held after the primary term. Otherwise, the lease terminates. During the primary term, the lease is held by the paying of rents.

Hope this helps.

Jean M. Pledger, Esq.
EHRLICH - PLEDGER LAW, LLP

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How do you value mineral rights for sale? Do you have to get a geologist to do a report on the land first?

A good land man/person can give you a ball park or you can list in EnergyNet.com. Best of luck to you

Thanks Shane, I appreciate your reply.

Hi all, I am very happy to find this group. I was wondering if there is any independent oil producers who are interested enhanced oil recovery (EOR)? our company are very good at chemical enhanced oil recovery technology. we want to lease some oilfield or collaborate with operators to do EOR. We offer both finance and technology investment.

Email me at williamzhou.hybo@gmail.com if you are intersted.

I hope you don't mind me posting, but i could use some helpful advice and so far this is the only forum remotely close to the information I seek. My husband and I purchased some property about 6 years ago and placed a home on it. It had an existing well on the property. The minerals are federal minerals leased to first Oakland Petroleum, and now Vintage Petroleum. Do you know of any circumstances in which the surface owner has been compensated for the loss of their land? I know the minerals is the dominate estate, but they just came in and tripled the size of the well on our property! We are slowly losing our land :(

Anybody have an idea of what a reasonable drilling unit size for vertical and horizontal wells should be?

Does anyone know how to record mineral rights in California. If so can you please send my a copy of an example of the format and the document because I am not sure how to record it at the county. And can the bank sale me a home with someone else owning the Mineral Rights or would you purchase a home , but find out someone else owns the Mineral Rights

Richard: In my experience, the depth of a vertical well and the horizontal length of a horizontally drilled well will determine the well spacing. For example, a vertical well drilled less than 6,000' will have a 40 acre well spacing. For a horizontal well, if the horizontal component is 1,320' or less, the well spacing is 160 acres. Hope this helps.

Chayo:

Mineral rights are recorded in the same manner as any other property right, with a deed. Typcially, for mineral rights the document is entitled, "Mineral Deed" but the language is the same as for any grant deed.

Regarding the purchase of a home with someone else owning the mineral rights, this is a very typical in California. Most homeowners do not own the mineral interests under their surface property. In a developed community, often the mineral owners have waived their rights to use the surface. In rural areas, and sometimes even in cities, they have not, however. When purchasing a home it is always a good idea to have a title company find out whether the mineral interest owner has the right to use the surface.

Hope this helps.

I am new to the mineral rights forum and have some pretty basic questions.I inherited some mineral rights in Kern County, CA about 5 years ago. At the time, it seemed that these were hardly worth bothering with. I had to legally push the executor to take care of the necessary documents to transfer the rights at all and engage with the last lessee to see whether the lease was still in effect (it wasn't). Now I'm wondering if activity has increased and there is more demand for mineral rights in Kern County. And how can I go about establishing my ownership and finding a lease/purchase transaction? Or do owners just wait for due diligence to take its course?

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James:

If the executor of the estate that you inherited properly recorded the documents, then you should be able to obtain a copy of such transfer (typcially a distribution of estate) in the Kern County Recorders' office.

Typically, owners do wait until a landman (lease broker) contacts them with a proposed lease from an interested oil company. Mineral owners can be proactive, however, and contact landmen in the area to inform them that you own minerals and are looking to lease them. There are several really good landmen in Kern County.

As for interest in Kern County, leasing is still on the rise here. You don't menton the exact location of your minerals, but interest varies dependent upon the location in the county.

Hope this helps.

We have only a 20 acre parcel that has been in the family for over 100 years now. There have been leases over the years with Texaco, Chevron and several others from time to time, but this parcel has never been drilled. We currently have an expiring 5 year lease with Oxy and now an offer developing with their subsidiary Vintage Petroleum with the same terms of $35 per net mineral acre and 1/6 royalty for 5 years. In discussion with the Landman - I told her I felt we should get more for this next 5 years as when we signed previously the dollar was worth more and looking ahead, it will surely be worth less during the total of 10 years. I felt $45 would be a more equitable amount. She said that was a valid reason and would present that to Vintage but added they were more likely to go for $40. I asked her to do what she could - I suppose there are other options - go for 3 years and then ask for $45 for the other 2.

With a small parcel, It is not of tsremendous interest to them I would guess.... Also, I am concerned about pooling from what I have read on this website - I believe we should have an addendum covering the Pugh Clause. When I receive the contract this time, I will send it to my attorney . I now have a membership in Legal Shield (Formerly PrePaid Legal) for which I pay $20 monthly and can get free legal advice by phone or they will review an unsigned contract of 30 pages or less free of charge. Legal Shield pays a premier law firm in each state a healthy monthly sum for legal coverage as a benefit to members. I can send mine in and feel more at ease as to what we are signing as they have very knowledgeable attorneys in all fields. My family have used their services several times and been very glad to have their backup including for an IRS audit...there are discounted costs for such but well worth the access for the inexpensive membership! Check them out on the internet.

I realize others are able to get as much rent as $75 but I believe a small parcel just doesn't carry much clout. Anyhow, we'll see what develops.

Hi, We have been contacted by OXY recently to sign a contract, the offer is better than the previous ones, $50 an acre and 3/16th royality. We are located at T S32, R 26E, sec. 11, begining SW corner of sec. 11. We are looking to contact our neighbors in this area to share information, before negotiating contracts. The landsman told us there are 9 other parties in our plot that have already signed with them. I am looking to find my neighbors and talk to them. If you have been contacted by Tom Hall, of Oxy and are part of this deal please contact me. Thanks!

No , Our Contact was actually Allison representing Vintage Petroleum -a subsidiary of Oxy, who would be following up on the expiring lease. As I have read, Oxy is planning to only work with producing wells or those which have produced - for the time being. Since our land has not been drilled - we are feeling Vintage is more likely to explore in our situation and are accepting of that premise.

We are located in Section 36 Township 30 South Range 22 East so we are pretty far apart. We are about half way between Taft and Buttonwillow on the north. Looks like you have about 360 acres compared to our 20, so I am sure that causes quite a descrepency in the valuation offered. Good luck to you and I'm glad to have read your responce. Thanks.

I see a lot of Drilling permits and drilling notice for Kern County. I would like to know how long after a drill notice is posted before drilling usally starts?

Thank you

I was happy to read that you have seen drilling permits...I would also like to know how long it takes before the drilling starts. I haven't heard for awhile and was wondering what was happening....

Hello I am new to the site, we have 298.18 we own the mineral rights, not surface rights in T25S R23E my grandmother had a lease with Aera, witch did not re new lease so we are open to options and negotiations. I would so appreciate any information

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