Kaye This will be a new well. At some point they should file for a pooling. It is hard to say how long. Have you leased ?
Ron, Yes, I was the last one to lease this past May. There was one other person who is deceased and according to what I was told they found out that her only heir is deceased too!
Ron, I think they pool everything as a matter of course just in case they missed someone and it turns up later. I think it likely though that there is a small interest or interests that the owners could not be located.
r w That is what I think also.
Kaye the next step is for them to file for a location exempt so they can set up drilling as close to the border lines as possible and it will run north and south or south and north usually. then as everyone as said they will pool 640 acres.This whole process on our well which was horizontal in Grady county took about six months till they drilled, first poduction was 4-15-2012 and we are still waiting on divison orders. The good about the horizontal wells is they could maybe drill up to eight wells to drain that secion and you have a part of every one f them.
Ron, just the minerals.
Has anyone heard of Todco Properties not paying on their leases? I’ve been approached by a landman working for them and he’s very pushy with wanting me to sign the lease he mailed (and we never verbally agreed on terms).
Todd there have been spacing & location exceptions filed for in sections 16,19,20,21,27,28,30,32,33. Most by Devon and all for Horiz. wells
Ron, thank you! I need to clarify that the SW4 where I’m at is all leased (with the exception of the one lady and her daughter who are now deceased) I don’t know about the other quarters.
Richard, thanks for the spelling that out for me. It seems like its a long process and I wasn’t sure in what order it all took place! So, do I understand it correctly as its usually, spacing, exceptions, pooling orders before they go for a permit to drill?
Pam don’t let them push you. Do your homework. It’s just getting started.
Todd They have or are working on pooling orders in 20,29,32 -19n-1w which is close to you. they were ordered to pay $300 for 3/16th or no cash and 1/5th in the pooling on 29 . Here is a link to the pooling.
Pam I posted my reply under friends here also, others may have the same question. You can post the question if you want.
Pam To drill a well they have to get a spacing . Most horiz. well are on 640 acres spacings, some are under 2 sections or 1280 acres , other wells could be less 40,80,160 units are the usual. If you are under the spacing they can’t leave you out. What the operator does not lease they force pool. Under the pooling any one who has not leased to the operator already must make an election from the options offered in the pooling. If you have leased to a third party they must make an election. One option will be to participate in the drilling and take a working interest in the well and pay your proportionate share of the drilling expense and get your share of the production or 8/8th of your interest. Or you take one of the royalty options the operator is ordered to pay. These are determined by what was paid for leases in the eight units around the one under the pooling. If you fail to make an election in the time allowed, usually 20 days from the order date, you get the default option which is usually the high cash bonus and lower royalty.
Ron
I was just wondering if anyone has herd of or seen any activity in the 25-19N-2w area? Thanks!
Ok thanks Ron!
rw … that makes sense that they would go ahead and pool just in case they missed someone. Thank you, for making that clear!
I live in Logan Co. but most of our interest are were Grady ,Garvin, McClain, & Stephen Co. come together. About two years ago they started leasing for about $400 and 1/5th ,some less . Today I am looking at a pooling I got in Stephens that is ordering the operator to give these options $1700 for 1/8,1500 for 3/16th,1000 for 1/5th or no cash and 1/4. They have started drilling more then one well per section , 7 in one section in Grady Co., and some under two sections at a time. Don’t rush in.
Pam, everyone is right about not letting them rush you into signing a lease. Keep in mind, this guy may be trying to get you to sign a lease at the lowest bonus and royalty possible with unreasonable terms, so he can turn around and sell (flip) your lease to make a huge profit for himself! That’s one of the reasons they try to keep the bonuses so low! I believe that we all need to talk to each other and let everyone know what we’ve been offered and at what amount (and royalty) we actually signed the lease for. Not only does this force them to pay a higher bonus and royalty, it sends a message that we are the mineral owners and we call the shots! Of course, that’s my own opinion regardless, that some are oppose to this, but I think if we stick together we all win by getting a fair bonus and royalty. I also, believe that all the Oil Co’s. converse with one another to keep the bonuses as low as possible, so why shouldn’t we band together to push the price up?
To give you an example: I did a little research on my section with the county recorders going back to 1992, to present, and found that in my section there had been very little activity up until August of 2010, when they began a leasing frenzy for $150. - $200. per bonus acre. In 2011 it went up from $250. - $300. per acre and now its up from $500. - $800. per acre all with 3/16 to 1/5 royalties just to give you an idea how fast things can change. Of course, they can turn on a dime and pull out of an area too, so you never truly know what they’re up to unless, you have some kind of good inside source.
Bottom line, without our minerals, they don’t drill, so I think most of them need to take their “greedy little Hiney’s and go take a hike” or pay up!!
To the mineral owners that are not in the business of buying and selling minerals, beware. There are a lot of sharks out there, some on this forum misrepresenting what is going on. I cant tell you how many people have approached me about leasing and selling my minerals at absurd prices. If you are going into a lease you should hire an experienced oil and gas attorney. Some of the things you should insist on. 1. A gross production clause. That way they cant get a license to steal, by deducting their operational expenses. They have to pay you on the oil before their expenses. 2. For logan N. logan co. Especially within 5 miles of hwy 51 you should be getting 500 to 1400 per acre bonus, and at the very least 3/16. Some are getting 1/4 now. 3. You can lease only certain formations such as the mississippi, and not lease the woodford shale for example. The other things you can demand is access to the production data at the well head. This allows you to go to the wellhead and see the oil and gas produced as well as the water. There is much frustration with landowners now not being able to get the straight story from the producers on what the well is doing. Also I would at this point only lease to Devon in this area. They are putting in environmentally safe facilities, with lined tank batteries, and level shut downs on their tanks. All the others I have seen so far are substandard.
Kaye,
Not all wells are pooled. Only if the wells are over several acres, like for 640 H. well, then they are pooled. So, if you get a 40 A spacing in the Wilcox, it probably is a V. well and isn’t pooled. Now they can come in a do a 640 A spacing in Miss and pool. I have several wells that is on 10 A spacing all the way to 80 A spacing, depends on the sand/shale, amount of oil in that area, etc. I also have H wells spaced on 360 and 440, so all spacing isn’t the same.
So, when you are reading the order, if it said it was spaced on 80 and is being changed to 640, that is probably to H drilling spacing. Now the whole 640 will share in the well. Good luck.