McClain Pooling Orders

Trying to figure out OCC Pooling orders for Section 23 8N 4W McClain County. April 1, 2019 OCC pooled (Order # 693856) for $5,000 and 3/16 (and other options), Candi 111423 1H well already underway. I see today OCC pooling order #716263 , 1/7/2021order date, pooling same section again, this time for $150 and 3/16. Questions: Why did EOG do another pooling if it already had drilling operations underway? Doesn’t one pooling order take care of all subsequent wells drilled on the pooled land? Next, Why did bonus amount change from $5,000 on first pool order to $150 on latest pool order? Surely, it can’t be because oil price decline, which was temporary…oil at $53.10 today???

The second pooling is often a cleanup pooling for folks that were leased as of the date of the first one. Very common to have a second pooling.

Yes, in general, the pooling does apply for future wells in the same reservoirs if they are drilled in the time line designated by the pooling.

General competitive leasing prices in the area were much higher in 2019 and would have been used in comparison for the first pooling. They were not as high in late 2020. The hearing was in November 2020, not in January 2021. Oil prices at Cushing WTI were less than $40 back in Nov. and that is not usually the prices that companies actually get, they are usually lower depending upon their contracts. The pooling prices are “somewhat” tied to prices, but also tied to the leasing offers in the nearby area which had plummeted.

Thank you for your reply and for sharing your expertise.

Hello,

I am very new to the forum , so I apologize if I am not contacting the appropriate person, however perhaps you can lead me to them.

My question is how do I know if Native Exploring Operating LLC is legitimate? My 1 acre is in McClain County in Section 32. How do I know what to accept when they contact me ? How do I know what to accept as the royalty monthly payment? What else is important to know?

I have researched the internet to death and just need to speak with someone who knows. Help…Kind regards,

What Township and Range is the Section 32 in?

Are they trying to lease your property or is the acreage being force pooled? Typically either scenario will have the following options that you need to consider - would you like a higher cash bonus per acre with a lower royalty rate OR would you like a lower cash bonus per acre with a higher royalty rate? (ie more money up front or more money in your monthly royalty spread over time). That will be up to you based on your preference and circumstances. As far as monthly royalty payments- that will be based on the amount of acreage (in this case one net mineral acre), the royalty rate you choose and then how much the well is producing.

As far as Native being a legitimate company, I have heard of them but cannot vouch for anything other than that. They are in the operator directory on the OCC website https://oklahoma.gov/content/dam/ok/en/occ/documents/og/ogdatafiles/operator-directory-listing.pdf

Yes, Native is a current operator. They have force pooled some of my acreage. You can either choose to lease with them or you can wait for forced pooling. Either one has pros and cons. If you give the complete section, township and range, it will be much easier to answer you better. There are many section 32s in McClain.

If you lease, the draft lease they send you will not be in your favor. It will need some negotiation to get a more mineral friendly lease. If they force pool you, you will get several options. I usually take the higher royalty and I don’t really care what the bonus is since it is so small in the big scheme of things. The higher royalty usually pays off better as it goes for the life of production and affects all the wells under the pooling order. The monthly royalty payments will depend upon the net acres you have, the spacing of the well and the prices of products at time of sales, so no set amount per month.

Suggest that you read the Mineral Help tab above, get familiar with the Oklahoma Corporation Commission website and read over the last year’s comments in all of the McClain category of the website. Many of your questions will probably have been answered there.

Come back for more help.

I have been trying to get into contact with native exploration operating LLC in Oklahoma City for Quite some time. My lease is fixing to expire and I cannot get them to respond to me any suggestions on how to proceed with this?

Send them a letter. Not sure if they are active any longer.

This is in reference to a lease lot 1 and the N/2 N/W4 N/E 4 and S/E 4 N/W4 N/E4 of Section 2 Township 7 range 4 W. I have sent Snail mail phone call to native exploration and I cannot get no response.

During the Covid lockdowns, many companies have been working from home so things are going slowly. Also many companies are in bankruptcy or close to it, so they are not renewing leases at this time.

When was the original date of your lease? There was a well drilled called Medicine Arrows 2-35-04 1WXH. If you were in the spacing of that well, you should contact them to see about royalties. Have you received a Division Order from them? Have you moved? You may still be under a lease.
Purchaser/Measurer: ENABLE MIDSTREAM PARTNERS, LP

First Sales Date: 04/16/2019

NATIVE EXPLORATION OPERATING LLC PO BOX 18108 909 NW 63RD ST OKLAHOMA CITY, OK 73154-0108

24070

Maybe they are not interested in leasing more acreage. If you name and contact information are correct at the County Clerk’s office, if someone is interested in leasing your acreage, they will get a hold of you.

Good Luck.