Lease terms in a Spacing Order?

Oklahoma Mineral Rights
1

Here’s a new one on me…received a Drilling & Spacing Order from the Corporation Commission which includes the following clause:

“That, for the purposes of this Order, the owner or owners of oil and gas rights in and under a tract of land within the drilling and spacing unit not subject to an Oil & Gas Lease shall be regarded as a Lessee to the extent of a seven-eighths (7/8ths) interest in and to said oil and gas rights and a Lessor to the extent of the remaining one-eighth (1/8th) interest herein.”

This same company has never contacted us about a lease, and has not answered our month-old letter advising them we would like to negotiate one.

Anyone ever seen this before?

2

That is a very common sentence. The company that is applying for the spacing order may not be the operator or it could be. The spacing is often filed months or years ahead of any pooling. if you post your section, township and range, plus county, folks may be able to tell you who is leasing in that area and you can follow up on that.

3

Seminole County, Section 26-8N-5E. Thank you.

4

United Land Company, Reach Energy Limited, Reagan Smith Energy Solutions and Boone Operating have been in the area in the last 999 days. Ask for their 1/5th option.