Again, what I read here the last 2 days, is old hat. It is what has been. It is yesterdays news, yesterdays technology, westerdays everything, but it is all changing so rapidly most people are not able to even keep up with it. We are seeing old vertical wells re-opened today and more are in th near and immediate future. Even the Horizontals producing in Logan County today, new technology will change their output. New transportation systoms are happening as we speak, and more coming in the future, and Logan and Payne Counties will provide the new benchmarks for everything in our oil and natural gas industries. To me this is the most exciting and REWARDING part of it. God Bless Oklahoma.
MBO = thousand barrels of oil
MMCF = million cubic feet of gas
(each M stands for 1000)
I really believe the climate is perfect for legislation dealing with the payment of Royalties contracts with Landmen and others using terminology like NET and GROSS, allowing it to those who know the system and those who are ignorant to the rules and termimology, such as myself for prime example. I believe all legislative members of all regional, state and federal houses would be very receptive to legislation stating that if they allow GROSS or other Mineral owners then they must allow it for all of them. It will happen, and I believe sooner vs later, but only if we stay in argumentive contact with our LEGISLATURES MEMBER, and closer to the next election, the more we should squack. Quack quack.
Carl,
Go to this link to view drilling permits, recompletions, reenters, etc.
http://www.mineralrightsforum.com/group/logan-county-ok-oil-gas/for…
Clint Liles
Tim,
Yes we have a good relationship with one of our operators.I think it is too early yet for anybody to know the average Miss well life.I have heard estimates ranging from 7-30 years.I think further drilling technology in the future may have a factor in these figures but that is just a guess on my part.
Does anyone know when the Lavera 5-18N-3W #1WH and the Lavera 8-18N-3W #1WH wells were fracked and started producing? They are both on the same pad in Section 5-18N-3W. Drilled by Devon.
A whiles back, I had communicated with an oil professional in Noble County Texas, which is almost identical I understand, to the situation we have in Logan County OK. She told me that any such minerals, no matter how meager, would go on even beyond 50 years, and will totally shock and surprise what most experts with years of expertise have. Since then, Logan has been showing the probability it will even exced her generous estiments. I am watching, however, the market prices of crude and natural gas, and they are falling a little short of my predictions so far, and for a Proverbial Know It All such as myself, this is as little confusing. But, who understands the markets completely, not even Warren Buffet.
Also, are there any examples of geophysical permits that I could look at and compare to mine??
Thanx, Robert, just when we thought we could not get more confused, LOL it always gets better. I see a Wright has joined Logan, Albert, I think, wonderin if he is a long lost relative, or maybe I am the one long lost, LOL, anyway, any Wright is alWright with me. Welcome.
Robert, add your gas in as well to your spreadsheet. You get paid on both of them, but separately.
today’s gas price for OK is about $3.56 (High BTU gas will get a better price) Check your royalty stubs for the price they are giving you.
today’s oil price WTI 108.33
Chad, it is one payment for an easement instrument that is recorded with the county clerk.
Hi all -
Have a question that maybe could be answered here.
Here are the facts:
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Share mineral interest and surface on 160 acres with my 2 siblings.
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Received a request for a permit to conduct geophysical operations on our property.
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Also received the accompanying property questionnaire.
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Consideration proposed is $1600. for the 160 acres.
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Property is currently leased for farming 52 acres and for grazing cattle.
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Property is also leased to an oil company with about a year left on the lease.
Questions:
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Should I add additional clauses to this request, such as property damage other than to the surface. There is a creek and a spring on the property.
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Should I have the water tested and the water flow checked prior to the 3 D geophysical survey?
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Are there any other pitfalls or addendums that this group would recommend OR any items that most people overlook or agree to and regret??
APPRECIATE ANY AND ALL RESPONSES!!!
Pipeline payments: The most I have heard of Devon paying is 150 per rod, which is about 24ft. for a multi line easement.
As for life of a Miss. well, remember that operators frequently go in, squeeze off perfs that are not producing, and re perforate and refrac wells. Devon is doing 10 stage fracs in a mile lateral. They could cement in all ten fracs in 5 years, (cement squeeze job), go in and refrac ten new zones, and your well will probably produce like a new one, depending on the inflow. Previously it was stated on this forum that the inflow in the Mississippi is 60 acres. I wouldnt be surprised to see one woodford and one mississipi to each unit initially, then the spacing reduced to 320 and another mississippi and woodford drilled. I have made inquires to devon today to find out about the metering, (what kind), how often the calibrations will be, and how often the meters will be proved. I will also ask how they will adjust allocations if an error is found in the monthly calibrations. As they are only putting 4 oil and 2 water tanks per pad, with 2 or 3 producing wells, they have to be allocating by meter. So be diligent that your meters are calibrated often and proved. I am amazed at the offers to buy minerals I get in the mail. I would not sell my minerals at any price, but the going rate is well above 3000 per acre now in this area. 18N-3W-4. I have attached a revenue calculator, just plug in the numbers.
Pipeline payments: A rod is actually 16.5 feet which could make a significant difference to the landowner.
@Andy, $10.00/acre is what we received in Garfield County.
@Robert: Thanks for the XLS worksheet. Much appreciated!
Question for Robert or Steven: What would be the frequency of payment for this $150 per rod?
One could negotiate for the $150 per rod and a nominal yearly rental of $2,000 per year. The pipeline could be in use for 50-100 years.
Has anyone ever got a yearly rental? I asked for it but was told they do not do it.
Whether one can negotiate a yearly rental amount may depend on how one negotiates. They have the money, the most hateful thing to them is something that might lose them the right of way as not paying the rental could do if written properly. Mr. Brian gives good high value suggestions, I see a problem with the pipeline abandonment for more than 90 days clause, because how are you going to know, much less prove that it has happened? If the operator thought it would be easy for you to do so, you would have to fight tooth and nail to get that clause.
Never forget the diminished value to your property, all of it will be diminished not just the stretch that the pipe runs through. Just exactly how much are they paying you above and beyond the diminished value? I would consult a realtor for an appraisal. There may be nothing but jackrabbits around right now, but what about 50 years from now?
Much appreciated RW and Steven.
Mr Layman, indeed my own beloved Mother and Auntie, who made the best pancakes in Kansas, received royalties of about $11,00 for several years from a vert well at 20-17-3. My own brother, Duane, and I went out there once just to sneak around, but I do not think we fooled anyone, they knew who we were. LOL But I have heard they are not required to pay but annually if it gets so low, but do not know how low that is?