Locating Military Mineral Rights Ownerrs

Oil and Gas Leasing Help
1

I am a military family member who has inherited from mother mineral rights, shared 50/50 is what I hear. Three brothers, who have shown no interest in this so far, so I guess it is up to me to find out what to do next. Rights are in Nolan County, Oklahoma, as I remember from discussions 36 years ago. Now I hear, through another family member, that drilling will begin this coming February, and the drilling company is no longer looking for me or my brothers, as 6 month requirement has passed? Is this correct? One cousin on their side has received some kind of healthy advance? Does this sound right? I do not know at this point who the drilling company is, only that, hearsay, the plan is to go up to 2 miles deep and omnidirectional?

This is about all I know. What I want to know is how can I find out more, and are there issues that need to be addressed for the drilling company not currently searching for us? I understand they know the names of all 4 of us boys, that is all I know.

2

Noble County maybe?

3

Hi Ronnie -

If it’s Nolan County, there is only one in the US and it is the State of Texas. The County Seat is Sweetwater, Texas, which is 223 miles or about 3-1/2 hours West of Dallas, Texas on Interstate 20. About 40 minutes West of Abilene.

NEVER, NEVER, NEVER DRINK THE WATER IN SWEETWATER TEXAS. No offense intended to any of the very fine Citizens of Sweetwater, but the name Sweetwater is single, most powerful Antonym I’ve ever run across.

If Nolan County, Texas is where your property or interest is located, then you and your brothers might be in for a series of very wonderful surprises - surprises that might last the rest of your life and far into the next generation’s.

There is a new Shale Play developing in that part of the State, where they do go down and then out (the out part is referred to as a “lateral”). I have heard the names Cline Shale and Black Shale formations discussed - there may be others (different companies refer to them one way or another). I’ll see if I can find you some information on the area or you can search the names Cline Shale and Black Shale on the internet.

I’ve been a Professional Landman for more than 34 years and have never heard of any kind of 6 month limit for searching for missing landowners. Many times I have searched for “missing” Mineral Owners for years.

If you got wind of that concept from someone on the ground it may have something to do with a company’s planning on Petitioning the Court to have a Receiver (typically the County Clerk) appointed to sign what is known as a Receivership Lease on behalf of “missing” Mineral Interest Owners, but none of that would ever cause you to lose your mineral interests.

The first thing is to locate the property: Do you happen to know its legal description? Or the name of the family owner that it would have come down to you and your brothers under? In other words, how did your family come by it, who was involved at the time and how long ago did it all happen?

And, do you know how much land is involved?

Hope this helps -

Charles

Charles Emery Tooke III Certified Professional Landman Fort Worth, Texas

4

Uh, oh, my mistake, that should be Logan County, Oklahoma, not Nolan County. But after a lot of research, it appears that Logan County, Oklahoma and Nolan County, Texas are in the same fix, more minerals than we can even measure or guess.

My location is Township 17 North, Range 3 West, Section 20: NE4.

Hearsay has it they had a court session Dec 31 for some purpose, and they will drill between today (Jan 16, 2013) and sometime in February, a drilling that originally they shot for August but, according to hearsay, they want to drill as soon after the court session as possible. Drilling for both oil/gas and there has been some kind of mention about pooling as it will be a 2-mile spider well. Whatever the heck that is, but supposedly, could go horizontal in several different directions and levels.

Well. Inasmuch as I am a professional writer, I have already won, and partially finished with a book dealing with all of this in only 2 months since I first heard of it ever. I welcome anyone to provide me input that a newcomer knowing nothing about the whole thing might find useful. I find that people seem to be very secretive about their end, when they should be very open and inquisitive. In my opinion, it is NOT a time to be coy or just not talk about it. Communication is the key to EVERYTHING, and the people with the answers to your questions will never tell you those answers if you do not ask.

Thanks,

Ron Wilson

5

Mr. Wilson,

Here is the pooling order for that area. I don’t see your name listed. Are you an heir to one of these listed?

http://imaging.occeweb.com/AP/CaseFiles/OCC4337080.PDF

Here is the spacing application

http://imaging.occeweb.com/AP/CaseFiles/OCC4337079.PDF

and the location exception application

http://imaging.occeweb.com/AP/CaseFiles/OCC4337083.PDF

I’d need some ownership names to do more digging.

Charles asked some very good questions.

The first thing is to locate the property: Do you happen to know its legal description? Or the name of the family owner that it would have come down to you and your brothers under? In other words, how did your family come by it, who was involved at the time and how long ago did it all happen?

And, do you know how much land is involved?

Rick

6

Okay, yes, I am part of the US Army and could not be located, which is an option I have as a possibility down the road. Anyway, it was in my mother’s name, Esther DeEtta (Wright) Wilson and her sister, Noveta Wright Rutter, who was found in time for the pooling meeting, but I was not. I still do not know how this will play out. The pooling name for my cousin, the daughter of my Aunt Noveta Wright Rutter, is now in the name of Catherine Kinke. I am still up in the air, but I think it will work out okay. Everybody is really being as helpful as possible.

7

Well it is showing Catherine’s name as Koenke. She signed a lease on 7/2/2012 in 20 17N-3W.

You didn’t answer the question about the amount of acreage or how long ago your mother passed.

I would guess your mother’s estate and/or this property was never probated and transferred to her heirs. I would STRONGLY suggest not “thinking it will work out okay.” You need to get it straightened out and get everything documented. Likely you need to contact an oil and gas attorney with estate experience (or vice-versa) before they get the pooling order finished. You need a written agreement from your brothers picking up some of the attorney’s tab, quit claiming their share to you, or paying you out of bonus/lease.

8

Rick, Thanks for the info, Sendero Land in Edmond OK has all of that, and according to them, it has all been documented and they sent me a Lease for Net acres of 1.16533 but there is no specified royalty rate in the lease, only the Office manager telling me on the phone it would be 1/8 at the low end of $400 bonus, which I actually care nothing about, but want as much royalty as I can obtain. I have not signed the lease, and I have so many other things I care about more than oil right now that I do not know if I should, or even will sign the lease, because of the meager size of the acreage. Thanks.

9

We own the surface, at wellsite.

10

In my 34-35 years as a Landman I’ve never heard of a lease that did not contain a royalty provision. Somebody needs to be talking to a Lawyer about that one!

Charles

11

I agree Charles.

It appears he has some marketable title issues that are going to haunt him as well. Relying on a land company to “document” the estate issues is very likely not going to work out in the long run.

Sendero Land does not show to have filed any leases, but they may be working on behalf of other entities or Osage. Osage has the most leases and is the one pooling it. There are not any leases that have been filed for 1/8. Ninety+ percent are 3/16 with a few 1/5s and 1/4s thrown in there.

Something smells with this whole deal. It could be all a misunderstanding but I think he is on the way to being taken advantage of.

12

Ronald,

I’m not a professional, Charles is. Take his advice if you are not going to take mine. I understand.

To be VERY BLUNT, since the more subtle words did not seem to work.

  1. From the info you have provided, you have a mess.
  2. From the info you have provided, you are about to get screwed.
  3. Time is an issue with a pending pooling order. In Oklahoma, if you do not respond (or are not in a legal position to respond) to the pooling order, the worst that can happen is you will be stuck with the default 1/8 RI provided by the pooling order. Likely you still are going to have to straighten out some of the mess to get any proceeds from the well regardless of the path you take.
  4. A bad lease could be worse than the pooling order. I can almost ensure you a 1/8 RI lease with a company will be worse than being force pooled by the OCC at the default 1/8 RI because you could not make an election.