Me and a friend have right under 6 acres in 5-5n-1w. I got a letter from charter oak saying that there going to drill a woodford horizontal well and i could take one of there lease offers which were low or get force pooled. Is there anyone else in my section that has got this letter? What should I do?
Let them force pool you. Charter Oak generally makes their money on drilling expenses charged to the operator.
Someone may correct me, but I have only seen them drill vertically.
I will wait then. Thanks Tom.
At this late date, you may be better off pooling. The hearing is supposed to be 9/13/16 next week. Probably not enough time to get a really good lease. The basic one is not friendly to the mineral owner. However, it could be done.
If you are pooled, pay very close attention to your mail in the next few days after 9/13. Or come back here and friend Martha Barnes (See the Friend box at the upper right) and I can check and see if the hearing was held or postponed. You only have 20 full days (not business days) to reply. Normal poolings will give you a few options to pick from. In general, I almost always take the lower bonus and the higher royalty because in the long run, the royalty will give you more money than the bonus. Do not take the 1/8th option if you can help it. I have a basic form letter that you can use to send back to them. Send it by certified mail return receipt about four days before it is due. Keep a full copy of everything you send to them and a copy of the post office receipt in your files. I can't attach the letter in this part of the forum, so friend me and I can send it to you.
Thank you Mr Barns. We are friends. Ill send you my # if thats ok with you.
Can you tell me any info you have on this activity? We leased with Superior/Charter Oak in 2014 for secs 12,13,14,15, 22,23,24 and 27. Received a well proposal from Capstone/charter Oak this week for secs 12 &13. All secs are 5N-1W. Seems low at $150? Or not? I’m new to all of this and would like some help!
the papers i got were $175 1/8 or $150 3/16. The lease bonus isnt much but when they force pull us we should be able to get a little bit more bonus $ and you definantly want to take the highest royalty they offer. Then when they drill the well your royalty checks will more than make up the up front bonus $.
What is the risk of waiting to be force pooled? What do I need to do to be ‘force pooled’. And does it matter if other relatives have already signed? Is a ‘Well Proposal’ the same as a Lease? This one is a bit different than the one we received and signed in 2014.
Ugh…so sorry for all the questions. I hate being ignorant and blind on this subject!
If you are leased then youll be held by your current lease but if your lease is expired then you can either release which it sounds like you are if there mailing you a lease to sign or wait until they pool you. When they pool you you only have 20 days to respond so dont be slow at getting back to them or thell give you the lowest royalty they can. If you have more questions you can friend me on here and ill give you my phone # and explain it all to you in detail.
Charter Oak has drilled about three horizontal wells in McClain county although Mr Moore is right that the vast majority of their wells are vertical. They have horizontal completions in 17-5N-1W, 17-6N-2W and 8-5N-1W. The closest recent pooling to you was section 4, T5N R1W, which pooled at $275 @ 1/8 and $250 @ 3/16. What did your letter offer?
This is for 12-5N-01W & 13-5N-01W horizontal well proposal, $175 1/8 or $150 3/16. Other distant relatives already took the 3/16, but they aren’t the type to negotiate…I guess. My brother and I, however are both business men/owners. I claim very little knowledge of this subject tho.
The other sections mentioned above were all leased in 2014 through Superior. Nothing has come of any of those leases. Is that normal?
The risk of waiting to be force pooled is that they may change their minds and get the pooling application dismissed. Even after the pooling order is issued, drilling a well is not guaranteed. New information from offsetting activity and changes in the oil and gas prices can influence the decision to sink more money into a prospect. Superior Title is leasing for Charter Oak in your part of McClain Co and they apparently are still holding your leases for now. Some pooling applications have been filed by Superior but Charter Oak is or will be the operator of any wells. Wells in this township have not been barn-burners which explains the low bonus offerings compared to bonuses two townships over to the west. For myself, i would never sign an offer without seeing the proposed lease and then speaking with my own attorney about it. An experienced landman can help improve a proposed lease but i prefer to work with a lawyer.
Leases are not expensive in this part of McClain County. They may get around to doing something with those leases or they may try to get an extension. My opinion is that, in this area, you are not likely to get a royalty offer higher than 3/16. You can wait to be pooled or try to get a good lease (minimizing reductions and charges) at that rate. If you want something higher, say 1/5, then you will have to find someone willing to take that lease with a reduced bonus. Probably not an operator like Charter Oak.
I know companies that will pay more than 175/acre in that 5N-1W area, try ■■■■■■■■■■■■■■■■■■■■■■ or ■■■■■■■■■■■■■■■■■■■■■ or ■■■■■■■■■■■■■■■■■■■■
You should get at least $200 in a forced pooling at 3/16. If you want a higher royalty then you may need to offer your minerals for lease to someone else besides Charter Oak.
Pooling was December 14th, 2016. Prices were set at $225 1/8th (don't take) or $200 3/16ths. You have twenty days including weekends to respond or you will be stuck with 1/8th. If you deal with anyone else, they have to have the leases filed by Jan 2 at the courthouse. Maybe Dec 30 for safety due to the holidays.
Force pooling is not that onerous. You can find the orders under case 201603707 on the OCC website Imaged Documents.