I just looked up the spacing orders dated 2-8-13, Slawson got a permit to drill the Ruffed Grouse I-20H in the NW, NE_NE-NW4-20-17N-3W, Logan. I do not see a spud at this time. When you signed the lease, what was in your lease? You mention ORRI, that is only if you agreed to take a % for your interest and no money. I would call Slawson and find out what is going on.
Ronald,
I do not know of any law that says you have to take a bonus upfront. Lots of people give their leases for a larger % if they are guaranteed a well.
People need to read their leases and know what they are signing. It could be really costly if they don’t.
And Ronald, your oil company will be the first that doesn’t take advantage of people. I’m not saying that all oil companies are crooks, because they are not. There are very good oil companies out there, but if it comes to money, they would rather make the profit and you will be on the short end. A 1/8 lease is like leasing in the 1950s. People are still doing it because they haven’t kept up with the times.
Kaye, it’s good that you are keeping up with things around you, but remember, a very good well can come in next to your minerals and yours may not have anything or it could even have a fault. With today’s records, very few wells are drilled on a fault anymore, so we don’t need to think about that. I have seen wells drilled in the NW part of 160 that came in at 50 BBD, they go to the NE part and hit a dry hole. Oil isn’t everywhere.
Ok thanks Virginia I’m ok with my lease for the most part just a few things since the lease and I guess protocol the system requires leaves a bad taste in my mouth. I don’t mind paying my fair share as long as it’s fair. I would have liked to have gone to the hearing mostly out of curiosity and to learn something, but work got in the way dang it. Yes there is an option to lease another 2 years was curious if they would have to pay up again if nothing happens between now and then other than what I posted earlier. I believe the well they finished could be Sec 19-19N-1W but not sure the others they are cutting pads for last time I went by they had just finished the pad. Last I looked they had asked to drill in S31-19N-2W, S27 and S34 off the top of my head which are next door and less than 2 miles away as the crow flies all multi unit wells last I looked there was no spud date. I’m uploading these comments from my phone I am at my farm trying to put a little work in before some rain comes so don’t have access to my map I’ve been using to fill in activity around me.
This 1/4 sec I’m standing on had a good 40 acres of dense trees it was a mess but the price was right as far as the lease I knew enough to know that I don’t know so I took it to an attorney he added and took away some things but off the top of my head I believe there is a provision like what you posted I will look and make sure when I get home. Thanks for the info!
Todd, by researching “all of the adjacent sections” surrounding your section it should give you a pretty good idea of what’s going on. If your lease is about ready to expire, I would think that would put you in a pretty good situation to ask what you want however, if you have a two year extension included in your lease I would be on top of it to make sure you get paid the extra bonus you agreed on.
Either way, it sounds like things are getting ready to “boom” in your area!!
Todd … sounds like your investment may be getting ready to pay off, big time!! Virginia’s right, take a look at your lease and check out the date they have to pay you if they haven’t drilled yet! Good luck!!
Your spacing order was 1-18-12, but the permit to drill was 2-8-13.
The permit said: SE, SE, SE, SW 20-17N-3W, sorry I typed the wrong letter.
Is your name listed in Exhibit “A” with a decimal point by it?
This could be a company that doesn’t have all the land leased in the section or have some people with unknown address. I would call their office and ask for clarification on this.
You are probably alright. Since you have an extension, they will pay you again for what they paid you last time, unless you have a % increase in your lease. Did you have any provision regarding extension had to be paid so many days prior to the expiration?
I sure hope you get some rain up there. My 26 foot deep pond is almost dry and I have at least 18 other ponds that are dry. Some of my renters are having to use rural water at my expense. So, we do need rain.
Has the trees started coming out yet? We are mowing grass in TX. But, I need to get trees removed before they come out in OK, it’s just been too cold up there.
Honestly Virginia, only a joke, just having some fun!! I don’t give a “rat a..” what they drill, really!! Just like to get away from the doom and gloom - of the dry hole syndrome!!!
I was also wondering on the drilling and spacing requested by Devon that was granted by the OCC, is the OCC looking out for my interest as well as the others in sections around me? And since I’m not made aware of what well or wells are draining my oil at this point anyway, how do we know as mineral owners how much is being prospected and is that amount what the oil company is claiming? Also at this point kinda feel like I’m being funneled through the system and being told what I’m going to do (not really liking it maybe I need to go ahead and get attorney just didn’t want to spend money on it if we are just funneled through this system like cattle and it wouldn’t have made any difference in the long run and all the attorneys going to do is tell me what they are going to do anyway, don’t mind hiring an attorney if there is a need but the lease is signed?) thanks for any opinions on this or info on how we watch what they produce.
At this point it’s too late for an attorney, you should have put what you needed in your lease. Yes, you are like cattle ready to go to slaughter now. Kind of a bad way to say it.
OCC does take care of your interest. The oil companies go before OCC judge with lots of documentation showing how they are going to keep them from draining your property. I would say, they may already have a pad on the farm across the road from you and they are planning on drilling your section from that site. Or maybe the land around yours hasn’t been spaced and they want to make sure no one protests the spacing. If you have a reason, you can call OCC or go in person to the hearing. But, you will need proof why they shouldn’t be able to get the spacing, etc. You may have to hire a petroleum engineer to research your property and give you a report.
Regarding your April expiration of your lease, they maybe planning on drilling by then since the pad may already be made, have you seen a drill permit at OCC and a spud? Do you have an extension in your lease? Or they may just drop your lease.
Virginia, hahaha I know what you’re talking about since nothing in this life is for sure and who knows, we could be sitting on top of a big ole’ “sink hole”, for all I know, and once they sit the rig on the pad it could instantly disappear and there you go, “millions down the tube or should I say, millions down the hole” . . .
All I know is I never plan on anything until I have the “cash in my hand”, I’m from Vegas, remember! lol
If they move the rig and make a rat hole the day that your lease expires, they will not pay you for the extension. So, they do have time to do that.
Regarding my trees. I had the cedar clipped a couple years ago, so only have a few small trees. I want to take the big trees out along the creek bed and have the creek sculptured. I did that on one farm last year and it looks so nice, now I want to do all the others. It’s a great tax write off, need to get it done before the law changes. Plus the grass grows a lot better.
I thought this forum was put in place to pass along much needed information, give hope while, at the same time acquiring a few friendships and having a little fun while we’re at it. Not only that, it serves to help protect other mineral right owners of their rights as well as a way to put Oil Cos. on notice that we are now banding together and that they won’t be able to take advantage of us so easily, like they did for decades with “all of our ancestors” who in a lot of cases were the real ones who were cheated the most!!
If anybody here doesn’t believe that the Oil Companies aren’t conversing back and forth on what little bonus money and royalties they’ve gotten by paying us in order to keep the payout low and their bottom line fat, think again! I took a little time to contact a long list of them and they all put on the same dog and pony act, giving me on the most part the same old story as if they were the ones “doing me a big favor” to take the minerals off my hands! lol Some, and I’m only saying some (because there are a few good Oil Cos. and land men out there) weren’t smart enough to create a signature sales pitch of their own because they mindlessly honed in on the mineral owners making it sound like an urgency to sign a bad lease when in fact, what a lot of mineral owners aren’t aware of is what terms they agree on today, if a well is drilled within the timeframe, will be the same terms they are stuck with for however long the production of that well (or wells) last! Which, in some cases could be thirty, forty years!!
Seriously, anyone can conclude - if the Oil Cos. don’t have the minerals to drill, “they don’t make any money”! So, why are we allowing them to take advantage of us with bad leases and by throwing us a few bones, while they have the potential of making millions??
My point is, when any Oil Co. blatantly takes advantage of any mineral owner (I don’t care who it is) by giving them a mere 1/8 royalty, it is inexcusable and makes me wonder about the ethics of any company doing this especially in today’s market when they are fully aware of any judicial ruling in Oklahoma of a royalty being no less than 3/16ths. It’s like anything else, they quietly prey on the ones with little or no knowledge about the oil business and swoop in like a pack of buzzards to pick the bones of their prey!
Just because a company can get by with it doesn’t make it right!!
