I will be receiving X dollars per mineral acre prior to royalties. What exactly is a mineral acre? I understand the entire section of land will be used if that helps at all. Thanks for any guidance.
A mineral acre is the size of the plot (640 acres in the case of an entire section) multiplied by your ownership percentage. So if you owned 25% of the mineral rights under the section you would have 160 net mineral acres.
One mineral acre is the full mineral ownership in one acre of land. If you have a fractional ownership, then the proper reference should be net mineral acres, i.e. I have a 25% interest in 10 acres, or 2.5 net mineral acres.
Steve also mentioned "net" in his reply.
It sounds like you own an undivided 1/3rd net mineral interest in a certain gross acres.
One more question guys. I need help please. How can I find out who is drilling/producing in Grady County, OK, Section 12, Township 6 North, Range 8 West. I just found out there has been a producing well on this property for at least 15 years and I own the mineral rights to the section along with my siblings. Any and all help is appreciated. Thanks!!
If you have not signed a lease, you had better get some guidance from multiple genius on this valuable website!!!!!!!!
Malone Petroleum Consulting
Sandra, here is the Completion Report on the only well producing in 12-6N-8W http://imaging.occeweb.com/OG/Well%20Records/00000012/OCC_OG_0HSU06... and here is the only Transfer of Operator that is in the OCC data base http://imaging.occeweb.com/OG/Well%20Records/03052FE3.pdf .You can check on Oklahoma Tax Commission status of the well here https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLega... . It shows Unit Petroleum Company as the operator. You will want to find out how to claim the funds, if the person from whom you have recently inherited was not the recepient. I am going to take you at your word "any and all help...". I have been working up some basics to discuss with my children during the holiday's, so the following, which I have adapted for you, may be helpful to you also.
First download (and print) “Basic Information for the Oklahoma Royalty Owner” Last Revision - September 2012, (Oklahoma Corporation Commission) found at http://digitalprairie.ok.gov/cdm/ref/collection/stgovpub/id/241683 . This 37 page (+ cover) guide is excellent - lots of good information! This will help with the SE, NE, etc. of legal descriptions and some of the language of horizontal drilling. It will also start you getting enough background to understand discussions and presentations at learning conferences you may attend on mineral ownership in Oklahoma, and on forums such as this one.
George Wilson, a frequent resource speaker at National Association of Royalty Owners events, says “Remember the 5 M’s of mineral ownership (Managed Minerals Mean More Money)”! The first step to managing your minerals is to organize your records. Label file folders with legals for each section, range, and township. Keep the original/copy of everything. Start with whatever you have, and fill in with recorded documents as you locate or receive them (deeds, leases), spacing applications, permits to drill, completion reports, division orders, etc.
An investment worth considering is membership in the National Association of Royalty Owners (NARO) which includes 1 state membership. My wife and I have attended annual conferences of OK-NARO for the past 7 years. Check out the NARO website http://www.naro-us.org/ . This is a link to the latest monthly newsletter http://www.naro-us.org/Resources/Documents/ROAR/ROAR_Nov14.pdf , and another to the Fall OK-NARO Newsletter http://www.naro-us.org/Resources/NARO%20OK/OK%20NARO%20Fall%202014%... . The Oklahoma Chapter page has links and information on claiming unpaid lease bonus or royalties held in the Mineral Owners Escrow Account (MOEA) or Unclaimed Property Fund held by the State Treasurer. One sum (almost $8,000) I recovered was because of a legal description error on a deed (inheritance from an uncle), and another as the result of an indexing ommission on one tract by a county clerk (result was a force pooling on that tract) which is still costing us to this day. Be sure to check all name variations of family members who owned or may have owned property in the state. The Oklahoma Corporation Commission Consumer Services Division has an exhibit at the state meeting and there are many thousands of dollars discovered by attendees annually. They also do a conference session on using the OCC databases. The following suggestion covers a very small part of the information the OCC has available.
To answer questions about existing or pending wells (including activity in adjacent sections), open this link http://imaging.occeweb.com/imaging/OGWellRecords.aspx , then enter the Legal Location. Next check the box Exclude ECM (unless your minerals are in the Panhandle). Click Search, to see EVERYTHING in the OCC system that has been scanned for that section. You may wish to limit the search to a more recent date if the section has been heavily developed over the years. Drop down to Scan Date, enter a beginning date and use today's date in the last field. These are documents that the O&G companies never send mineral owners. As you begin researching your minerals, leave the Form # blank. Later you may want to limit to specific documents. Some of these are: Form 1000, Permit to Drill, Recomplete or Reenter; 1001A Spud Notice; 1002A Completion Report; and 1073 Transfer of Operator. There are other forms, but these will probably be of most interest. IMPORTANT - because surface location for horizontal drilling is often in an adjacent section, be sure to search all 9 sections! See page 32 of the “Basic Information for the Oklahoma Royalty Owner” booklet for an explanation of the United States Land Survey System.
For leasing activity in your area, other forum members on this forum are the best source, so ask, making sure to give the legals with at least section, township and range. Then be sure to share what you know when others ask. You may be fortunate enough to own in counties with free online access to County Clerk documents. Filed leases complete with addenda/exhibits can be read and perhaps printed. Call the County Clerk for information and login instructions if available. Bonus amounts are not included on leases.
Sandra, that is a work in progress. Just another thing or two. Your section 12 minerals are currently being held by production (640 acre spacing on the Shaw well), and Unit is drilling horizontal wells in Grady Co. I think you should join the Grady County Group. It is very active, but I (and perhaps some of the others who have answered your questions) would have never your post! Good luck. Just a couple of days ago I responded to someone else from Hermitage, with some of the same information!
Come back if you have other questions.
Sandra, even after proofing the last response to you, I found at least one problem. I meant to say "...would have never seen your post!".... Sorry.