Lease Release, S27,T8N,R8W, Grady County, OK


#1

I am told by the well operator (Sheridan Production Co. LLC) that S27, T8N, R8W, (Well: Ray Giles Tract-73) Grady County, OK is in the North East Verden Unit that was formed in 1983 and although the well is no longer producing, the operator says since my section is in the NE Verden Unit they have no intention of releasing any portion of the “Unit”. He went on to explain that the Unit is comprised of 8,000 acres and he does not foresee that S27, T8N, R8W will ever be released even if it doesn’t have any active wells. I will also be trying to determine if S26, T8N, R8W is in the “Unit” because I have minerals in both sections (at this time S26 still has the Ast #3 well which I am monitoring to see if it gets shut down). Over the years, other mineral owners in S27 have been doing new leases. Of course, I want to do a new lease also, but only if it is legal. Question: Is what the well owner is saying correct? Is there anything I can do to obtain a Lease Release?
Thank you for your time.


#2

The operator is pretty much correct. You can look up the terms and information on the North East Verden Unit on the OCC website. It will have which horizons are held, which sections, etc. It may go back to your original lease terms and the subsequent unit lease terms. They can hold acreage for a VERY long time… Let me know if you need to find out how to get the unitization documents.


#3

M_Barnes… that was very kind of you to respond. Thank you for directing me to information on the North East Verden Unit. I will try to find it. Update: Using the map that the operator sent me, it shows that the “Unit” is in a portion of S27, T8N, R8W, BUT the two leases that affect me are not in the North East Verden Unit. Cimerax has indicated they will be releasing our leases, but once i verify it is what I need, I’m still not sure if I can then re-lease our minerals.