Hello. I inherited my parent’s mineral leasing rights to what’s listed below. My parents have both passed away and I’m just now trying to research more about it. I called Pittsburg County today and am requesting copies of the leases and deed. The lease on record is from I think the girl said 1979. I know the oil company names have changed multiple times since then. I currently receive a very minimal check every 3 to 4 months from them. I’m always amazed when I see the amount collected and the money value and then all the deductions taken before I get my amount it boggles my mind. I also am trying to get information from the oil company why there are so many deductions and taxes on the same day. One amount just says “deduction” with no explanation what it’s for and I’m waiting to see if they will answer that. Any time in the past I’ve tried calling these oil companies they give me attitude and basically laugh at my questions. So needless to say I haven’t researched in a long time but now I’m once again looking into them. On a few occasions, I’ve also received court documents regarding lawsuits but nothing seems to ever come of it. I guess owners filing law suits against the oil companies but with their power and money, I’m sure it’s a losing battle.
WILKINS 1-18, State: OK, County: PITTSBURG
BUELA MAE 1, State: OK, County: PITTSBURG
BUELA MAE 1 TUR, State: OK, County: PITTSBURG
Thank you for any information you can provide or direct me to the right place.
Wilkins 1-18 Drilled in 2004 with first production 1.18.2005 by Samson Resources. 640 ac spacing. Samson Sold to Bravo Arkoma 4-15-2015. Then was transferred from Bravo Arkoma to Mustang Fuel Corporation on 6-7-2018. 18-3N-14E Pittsburg Co, OK Gas well so likely to have deductions unless the lease it could not. The tax deductions are legitimate. (In the NE4)
Buela Mae 1 is in the same section. Completed in 1982. (In the SE4) Drilled by Cotton Petroleum. 640 ac spacing in the Wapanuka and Cromwell. Sold a bunch of times, but also with Mustang now. Again, a gas well.
Taxes are regularly taken out. That is normal.
Hello. Is it normal for the owner to get such a small owner percentage? I’ve never been contacted about the lease or any change to it. The owner interest is minimal like way under 0.02 %. I’m sure when the lease was worked out my parents and my dad’s parents were completely taken advantage of by the powerful oil companies. It just is so weird to me that the lease never gets re-evaluated or anything after so many ownership changes. I didn’t know leases just go on forever even with it changing hands (company).
The equation that is used for your decimal amount on the checks is:
net acres/actual spacing acres x royalty x % perforations in your section.
So for example, if you have 10 acres in a 640 acre spacing unit , 1/8th royalty and is a vertical well 100% in the section, the you would have: 10/640 x .125 x 1.0= 0.00195312. If you had the same number of acres but had a horizontal well with 50% in the section, then it would be 10/640 x .125 x .50= 0.00097656. Perfectly normal.
Once a lease has production, it moves into the secondary term of the lease and lasts as long as there is production that fulfills the lease terms. I have leases that are 100 years old and we are still held by them.
You may want to take a breath for just a moment. I have dealt with Mustang for many years and have always found them to be professional and easy to deal with on matters. There can be many mineral owners with various degrees of ownership in a well. You may want to familiarize yourself with your ownership and the general terms/operation of an oil and gas lease. Any negotiation can be weighted to the better funded and more knowledgeable. Oklahoma forced pooling helps, but does not offset, with these advantages. Once you get a better understanding of this complex ownership, then you will be able to conduct more informed research. Good luck.
Honestly it’s all so confusing to me. I called the County where the mineral rights are located and had copies of the leases sent to me the last lease copy they had was 1981. I just feel like my parents were completely ripped off due to their lack of understanding what was being done when the leases were signed. It so weird to me that once a lease is signed it just goes on forever even though the oil company can change multiple times. Two leases were done in 1979 and 1981 when oil companies changed but nothing since then. I have no doubt the oil companies worked the lease to their advantage and completely ripped my parents off due to their lack of understanding all that was involved.
Welcome to the oil and gas world. Yes, we can still be held by a valid lease back many decades. And some mineral owners do get taken advantage of while others get good legal advice. The leases are a contract that is very difficult to break. On the other hand, getting some royalties is better than getting no royalties, so I try to stay in the gratitude mindset. Some of the old 1/8tjh gross proceeds leases can end up better than a new 3/16ths lease that allows post production charges.
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