This report is long and at first you don’t think it applies to Logan County oil and gas, but the US is going to export NGL’s and LPG to Europe and other countries and US Shale production is the reason. http://belfercenter.ksg.harvard.edu/files/dp63_carraro-et-al.pdf
I’m curious about this transportation charge Stephens is charging. The custody transfer point for crude oil is where the connection is made to load the truck. Gauging,sampling,grind out and temperature are taken on sight. Isn’t the custody transfer point for natural gas at the meter loop on location before entering the pipeline?
gn, If your natural gas is processed at a natural gas processing plant then the custody transfer is at the tail gate of the processing plant where the gas is made ready for sale or is of typical composition of natural gas in a pipeline.
Thank you Martha, I’ve been in crude oil purchasing and transportation longer than I want to admit. I didn’t realize oil and gas were handled so differently.
gn, Raw gas fiscally metered at the wellhead changes ownership and may or may not incur transportation charges. Some leases contain the phrase “at the well,” and do not contain a no deduction clause, therefore lessees claim they can deduct any costs incurred to make the gas marketable and get it to the point of sale.
Thank you Linda! The mineral acres is a little over 78.
Judy, 0.1875 is the correct decimal amount for 3/16ths, but you have to calculate your mineral interest. Example: If you own 40 acres out of a 640 spacing unit:
40 ÷ 640 = 0.0625 x .1875 = 0.01171875
Note: If you calculate the above using your number of mineral acres and you get a different answer than your division order, you may have a smaller or larger unit size, and/or your unit does not receive 100% of the production.
http://en.allexperts.com/q/Energy-Industry-Oil-2441/2008/5/Natural-…
Okay, I am reading the paperwork. I thank you so much for your help. I knew there had to be some type of formula to this!
That is .01249543. The zero might be important…
Is the spacing 640 acres?
I am coming out with a higher decimal interest if it is.
640/78x.1875=.0228515
Also, not all sections are exactly 640 acres, so when your numbers are close, but not quite right, check the maps with the Bureau of Land Management. Sections 1-6 and 7, 18, 19, 30 and 31 are often not 640 due to the curvature of the earth.
http://www.glorecords.blm.gov/search/default.aspx Works better for me in Chrome on a Mac. Pick Search Documents, By Type, LSR, OKlahoma, your township and range, Master Title plat. You can download your township by pdf (you may need to load the plug-in to see it.) Keep in your files.
Okay, the acreage on the DO reads that it’s 1265.540 horizontal hole well. I own 100% of 78.540 acres. I think the numbers are correct on the DO from Devon. It is Section 2. I already have the PUN#, It shows 4 months production. March, May and June show gas and only April shows oil. I don’t know what that means as far as monthly production.
M Barnes, is that Section 02, Township 17N, Range 2W. Thanks everyone for the help!
We received a division order last week. Could someone tell me how 3/16th’s royalty translates into (decimal interest/type of interest) . 1249543 BL? I thought it was 0.1875… Am I not doing the math correctly? Which one of us is wrong? The PUN # shows both oil and gas.
Judy,
your decimal interest is calculated by how many mineral acres you own.
judy, you might try this: go to the tab at the top of this page MINERAL HELP. The second choice under this tab is Royalty Calculator. You can choose either Oil or Gas. The first four lines calculate your Decimal Interest. If you know production numbers you can continue on to get a reasonable estimate of your royalty payment for the month. There is a calculator elsewhere on the web that is more sophisticated, but this one above Is a good starter. Best wishes.
Thanks Martha this helps alot
The property name on the order is BECK 35_2-18N-2W 1WHX. The description is Sect. 35_2-18N-2W, containing 1,265.54 acres, mol. Those are the only numbers on the division order. The letter accompanying the division order has Section(s) 35-18N-2W & 2-17N-2W. No %'s are mentioned on it or the division order, nor nothing about being a NADOA form. On previous cause CD paperwork received this past July, it stated the bottom hole was on our section, while the hole #1 was on Section 35. The multi-hole horizontal well length is 9,269 feet, with 4,028 feet located in Section 35 and 5,061 feet being located in Section 2. There are six holes in this well. The completion is described as 45.40% in Section 35 and 54.60% in said section 2. The sales of proceeds from well shall be allocated between the 640 acre drilling and spacing units herein based on the above percentages. We thought we had this figured out, and when the division order cam, quickly realized that wasn’t true. We don’t want to sign an incorrect paper. After calling, faxing and sending a letter to them advising of our new address in August, this DO came to our old one. I appreciate the knowledge and willingness of all who help here.
Judy
78.54/633.65=.1239485 x .1875=.0232403. BUT the well starts in Section 26 to the north so you don’t get the 100% for section 2. The completion has 54.60%, so .0232403 x .5460135=.0126895.
So a slight discrepancy there from the .01249543 I think you said before.
But we are very close. The three places where the numbers could be off are easy to ask for. The first is which land plat are they using? I used the BLM one, but it is old. The Cimarron River moves, so they may be using a new survey. Ask them how many acres are in sec 2 now. I suspect this is the one since the bottom of the completion order says “irregular section”. I just looked on a newer map and the river has moved quite a bit in section 2, so that might be it.
The second is that the 54.60% might be a planned amount and not the actual if there is a typo. They actually came back with a correction. Sec. 35 is 4208’. I think the second one is right since Sec. 2 stayed the same. The third possibility is that since the river moved, your acreage is slightly less (or more) now than when it was originally deeded. It happens.
There should be the name of a division analyst at the top right of the Division Order (sometimes). That is who you should call and see what numbers they used. Or call their Division Order department. I usually write a letter, put my calculations on it, attach a copy of my mineral deed and ask them to please clarify. Send certified, return receipt so you get a name. Might take a couple of weeks. Don’t sign the division order until you are sure and don’t cash the first check until you are sure. Also make sure it is on the NADOA form with no changes to your lease provisions.
Thanks! I will give them a call.