But, where did you read any judicial ruling in Oklahoma of a royalty being no less than 3/16ths? If OCC has to rule, you will usually only get 1/8. A person has to remember that the land man is only going to pay you whatever he can get by with as that is how he makes profit. You will find that land man go after all the people in an area that has lease prior for a lot less. Then they come after the next batch that has to have more. The last one to lease usually gets the most if they need the mineral area or they don’t get a leave at all. So, it’s a big game on both parties. I was lucky that my family understood oil companies and made some good leases. But, times do change. Right now with Horizontal drill, their is more to think about than we have in the pass. Also, we all need to watch so the oil companies don’t try to get 1280 spacing in order to hold larger tract of land. This is being discussed between oil companies, so mineral owners need to protest some of the new ruling. I want to thank everyone that has provided great information on this site.
Canada does not want to build a pipeline to the pacific, they have their own enviromentalists that have fought it tooth and nail and they are no closer to a solution. Canada just wants to use our pipeline system to reach broader markets, which may be allright except what happens if our own production keeps growing and we need the capacity ourselves? Will we have to build more pipelines because we can’t cut our good friends the Canadians off?
As nasty as the syncrude from the tar sands may be, we already buy alot of it. I remember ND light sweet selling at a discount to Canadian syncrude in the northeast because the syncrude was what the refineries were set up for and syncrude may be better for producing some things like plastics and lubricants.
I hope the Canadians get their own pipeline across their own country. If Canada wants to sell to China, let em. Between domestic production and other sources of oil, from Venesuela, Africa, the Arabian penninsula, I don’t think we have a shortage of places willing to sell oil to us.
Found out that the description of my land as section corresponded exactly to deeds my mom sold where she severed and held ALL mineral rights and were located within the town of Lovell, ie, plat description. Confirmed by the Okla State Auditor by one simple phone call. So corrected the land description without the need for an actual addendum to an estate tax return by adding the deeds to the corrected affidavit of heirship clearly showing LESS AND EXCEPTING ANY AND ALL GAS, OIL AND OTHER MINERAL RIGHTS. Thanks to Donna Darnell for patiently listening and helping me with this. Also, the organization Oklahoma Mineral Owners Association, to her, was less than worthless for the $35 dollars paid out yearly for the membership.
yes, Virginia, the Oklahoma Mineral Owners Registry has been of little help this last yr–and that was confirmed by Ms. Darnell… It is not that she said they were totally helpless, but very close to it. thanks. now to find out just who is looking as far as drillers is my next project…
Virginia, there you go. I thought that 3/16 was a common option under a pooling. I think it’s a shame that the state [Ok], if they make the decision for people they always make the slightly larger bonus and pitiful 1/8 royalty. I don’t know why Ok does it except to kiss up to the oil companies.
I don’t have minerals in Ok but I have friends who do. My minerals are mostly in ND where if you refuse to make a decision you receive 16% or the weighted average of whatever everyone else leased for in the spacing whichever the operator elects, and when the well and a 50% penalty cost of drilling and completion of the well are paid off, you become a working interest. I know why the state of ND would favor the oil companies, 11.5% combined production and severance taxes added to state income taxes they make almost as much off every well as the mineral owner does, so of course the state is in favor of as many wells as possible, allowing the operators to force mineral owners into overlarge spacings that may need 2 to 24 wells to fully develop. Not well spacings at all but small fields. Very many of the wells in these 2 section to 4 section spacings have their first well tucked away in a corner to make room for the future wells. It’s a land grab pure and simple, aided by the state. I hope such activity does not become the norm in OK. I have a few of these 1280 spacings with a single well and the infil wells that many have promised would come still have not after 5 years. Several infil wells are being drilled in the area, it’s not poor area, half of my wells still don’t have pumps after 5 years and still produce a good amount of gas for a ND well. As I said, I would hate for this to become the norm in Ok. Raise the biggest stink you can when they try to force oversized spacings on you.
This ruling may be what you had in mind…Oklahoma Supreme Court
Subsection (A) of 52 O.S.Supp. 1985 § 540 provides: “The proceeds derived from the sale of oil or gas production from any oil or gas well shall be paid to persons legally entitled thereto, commencing no later than six (6) months after the date of first sale, and thereafter no later than sixty (60) days after the end of the calendar month within which subsequent production is sold. Such payment is to be made to persons entitled thereto by the first purchasers of such production. Provided, such purchasers may remit to the persons entitled to such proceeds from production semiannually for the aggregate of six (6) months’ accumulation of monthly proceeds of amounts less than Fifteen Dollars ($15.00). Further provided, that any delay in determining the persons legally entitled to an interest in such proceeds from production caused by unmarketable title to such interest shall not affect payments to persons whose title is marketable. Provided, however, that in those instances where such proceeds cannot be paid because the title thereto is not marketable, the purchasers of such production shall cause all proceeds due such interest to earn interest at the rate of six percent (6%) per annum, until such time as the title to such interest has been perfected. Marketability of title shall be determined in accordance with the then current title examination standards of the Oklahoma Bar Association. The first purchaser shall be exempt from the provisions of this subsection and the owner of the right to drill and to produce under an oil and gas lease or force pooling order shall be substituted for the first purchaser therein where the owner and purchaser have entered into arrangements where the proceeds are paid by the purchaser to the owner who assumes the responsibility of paying the proceeds to persons legally entitled thereto.”
Subsection (B) of 52 O.S.Supp. 1985 § 540 provides: “Any said first purchasers or owner of the right to drill and produce substituted for the first purchaser as provided herein that violates this act shall be liable to the persons legally entitled to the proceeds from production for the unpaid amount of such proceeds with interest thereon at the rate of twelve percent (12%) per annum, calculated from date of first sale.”
Ronald, I sure hope that Ok has a minimum royalty. ND has a minimum royalty if you do nothing but you could agree to 1% royalty if you wish. Generally the governments do not protect against poor business decisions. you could give your interests to an oil company virtually for free and it would not concern them, try to give your interest to a famuly member you would probably be paying taxes.
I can think of at least a donzen ways to make half a ton of money off of this seciona in Oklahoma, even if not a drop of gas or oil royalties come out of it. And have more fun than anyone involved even if it is a “GUSHER.”
I was only trying to point out to Todd how they can hold his lease without paying him another bonus. Didn’t mean to sound harsh about the rat hole. Have fun, At this rate, we may get to be in Ronald’s book.
Ohhh, are yous guys hinting that guys like Dick Cheney, and Teddy Turner, who owns over amillion acres of oil rights in Montana I’m told, might be in cahoots? Would the Cheney’s even try to cheat the Ted Turners out of their minerals??? LOL Was Hugo Chavez the only good guy in the oil racket I mean business?
1280? and, I thought Oklahoma set it at 1/8? I have been doing some more research, in Nashville this weekend while chowing down on baby backs and listening to a Patsy Cline imitator…anyway, the way I see the Cushing extension, sort of, and why Canada is pushing so god-awful hard to get it instead of just shipping their crude to the Pacific and then to Japan, really makes sense to me, if we look at the bigger picture that they don’t want us to know. Canadian oil is what they call, sand pit I think it is? oil very dirty and not the top of the market. And so, what they want to do is ship their dirty corrosive crude through Cushing, where it will be MIXED with the cleanest sweet crude on the planet, then down to Port Arthur, and anyone who thinks a significant drop of it will be sent to our refineries, well, you knowww…LOL. Result, Canada gets on the prime cut list, for not a dime in extra costs. These guys are no dummies.
Glad you were able to get your minerals deed addendum and corrected. This is one reason a person needs to check their Co Clerk records. I have had things filed on my mineral and property because someone didn’t know their legal.
Donna and Junior at OCC are really great people and do a great job. It’s wonderful that they are their to help all of us. I really appreciate them.
One more thing, it is nearly too late to object to the Canadian connection of the Keystone connection, so EVERYBODY needs to express their opposition to letting Canada ship their dirty crude across 2800 miles of our beautiful nation. Write, call, email everybody who is anybody your oppositing before it is too late. At the very least, all of these so called TREE HUGGERS can be very helpful to us in the coming weeks, because Canada is very sure they will get what they want. Two international matters are at the very top of “bad items” for us in Oklahoma, number 1 being the final approving of the Canad connection to the Keystone, and number 2, which we do not know yet how it is going to affect us for certain, is the death of Hugo Chavez. Terminate the North end of KEYSTONE in Cushing Oklahoma, not an inch further, or it is some level of disaster for our own interestes as mineral rights owners.
WOW a wealth of information last few days, and it is good stuff and reaking. As for the 1/8 3/16 etc, I thought that if you did not sign a lease in Oklahoma, that the state imposed the 1/8 or better. As for me, I just threw my interests to wind, and signed the lease even though the written contract reads “…for the amount of $400.00 plus a royalty …” but no where in the written lease does it say how much of a royalty. And so,** in reality,** I do not really know at this minute how much of a royalty I will be getting. But, one way or 'tuther, I bet it is going to be either very pleasantly surprising, or very uncomfortably shocking. LOL But I do know that Jesus loves me, and my Grand Father and Grandmother, from where my minerals came from, still love me and indeed look out for me in many ways from Heaven, and I bet they know how this will turn out as well. Well. Drill Baby Drill. Could there be as many as 20 wells on this 640 acres?
Ronald remember God gave us brains so we don’t make bad business decisions. I have never seen a lease that didn’t say what % of royalty you would get. Did you look real good under #4, usually it’s in that part of a lease or it could be under #3 paragraph. If it doesn’t say, you may not be getting anything. Are you sure you just leased and didn’t sell your minerals? That sometimes happens without people know they sold it.
Regarding 20 wells per 640, forget that. We will be lucky to get 1 well per 640 and if they can get 1280 spacing, it will be 1 per 1280. This way they can hold a lot of mineral acres. We need to remember that oil companies use their leased acres for borrowing power at the banks, etc.
If Oklahoma goes to 1280A spacing, we won’t be getting enough on 160 A mineral for the gas to get to the bank. And if you only have a couple A, you will be lucky to buy a postage stamp. But, as my husband always says, little checks do add up, so I guess it’s better than nothing. And for some people a 3 digit check is like a 6 digit to others. So, I wish you luck.
Virginia; Okla. has already approved 1280 spacing and Newfield down in Grady and Stephens Counties plus Continental in Grady and Blaine counties have drilled and are drilling using that spacing. Currently Newfield is drilling 5 more wells along with the original Branch well in 2N-4W And Marathon has drilled 6 wells in a section in Grady County. check out the Grady and Stephens county forums for details. You could also read the quarter reports on Continental and Newfield over the last year and see how the area down south has expanded 3 rigs 2 years ago, 15 rigs now and probably 25 by summer, some rumors are that the Logan, Payne and Lincoln counties could turn into one of the hot spots in the state especially once there is some water to operate with.