Hi, Bob.
From your information I am guessing you are somewhere between Viola and Goddard (the 10 mile rig ref, and 3 mile rig ref)? I am probably part of that 100+ properties you referenced; our brokers are http://topdollarenergyauctions.com/custom/results.php ; they show the package in Sedgwick County totaling about 63,000 acres. I feel they did a very good job of marketing the package, and held several local meetings on what would be most beneficial in the leases for the landowner. We ended up with a 3 yr, 2 yr option lease; they weren't able to wriggle out of the option clause but other items such as Pugh clause, and royalty proceeds out of gross before expenses did get included.
Two good sources of information are the Kansas Commerce Commission, which regulates the mineral industry in Kansas, http://kcc.ks.gov/conservation/index.htm , and the Kansas Geological Society, which also collects and provides drilling and production information, http://www.kgs.ku.edu/index.html . On these sites you can, among other things, do a search for drilling permits (Intent To Drill), http://kcc.ks.gov/conservation/intents/index.cgi , and also search for well information http://www.kgs.ku.edu/Magellan/Qualified/index.html .
You mention a rig 10 miles from you; is that the Pauly 3002 6-1H, 3 miles east of Viola, being drilled by Shell?. They are also going to drill (Intent To Drill issued by KCC) 9 miles north of there (4 miles south of Goddard). I noticed on SandRidge's map on page 6 of the 8/06/12 investor presentation (found at http://investors.sandridgeenergy.com/phoenix.zhtml?c=196066&p=irol-presentations ) that Shell's Pauly 3002 6-1H is just on the edge of SandRidge's area of interest; I haven't quite figured out why they have that jog in their map.
In regards to the pooling issue, here is what I found in the state statutes:
Statute 55-1317: Unitization without KCC order, when.(a) As used in this section, terms have the meanings provided byK.S.A. 55-1302, and amendments thereto.
(b) Subject to the provisions of subsection (c), if all mineral and royalty owners and not less than 90% of the working interest owners approve, in writing, a contract for the unit operation of a pool or part thereof, such unit operations shall become effective without application to or order by the state corporation commission.
(c) Before a contract for the unit operation of a pool or part thereof shall become effective pursuant to subsection (b), the person or persons wishing to provide for the unit operation shall file a copy of the contract with the state corporation commission and shall notify all working interest owners of the intention to conduct the unit operation. Such notice shall be in the manner provided by law for notice of an application requesting an order for the unit operation of a pool or part thereof. The notice shall inform the working interest owner of the right to institute proceedings within 30 days after receipt of the notice to have the matter determined by the state corporation commission. Any working interest owner, within 30 days after receipt of the notice, may institute proceedings before the state corporation commission to determine the matter in accordance with the provisions of K.S.A. 55-1301et seq., and amendments thereto. If no such proceedings are instituted, the contract shall become effective upon expiration of the 30-day period.
(d) This section shall be part of and supplemental to the provisions of article 13 of chapter 55 of the Kansas Statutes Annotated, and amendments thereto.
History: L. 2004, ch. 115, § 3; July 1.
I read that as saying all mineral owners in the proposed pooled or unitized area have to approve, but the KCC could possibly overturn it. I don't think this happens very often. The Pauly well was unitized as 662 acres (oversized section, http://www.kgs.ku.edu/PRS/Documents2/2012_07_01_KCC/K_070312_PAULY_3002_6_1H.pdf), but the yet to be drilled MEANS 2802 17-1H shows unitized at 305 acres ( they excluded 2 tracts of 14.3 acres, http://www.kgs.ku.edu/PRS/Documents2/2012_08_01_KCC/K_080112_MEANS_2802_17_1H.pdf ).
My area is like yours; holes were punched years ago but nothing came of it. I have been looking at some of the newer dry wells in different parts of Kansas where KGS has shown drill stem tests on their site, and some of them did have shows of oil during the test. (40 foot of oil cut mud, 20 foot of oil, etc). To me that says that they felt that if the production wouldn't cover production costs PLUS drilling costs, they weren't going to produce. Of course, once you start getting $100 oil things change quite a bit. So some of those old dry holes probably did show oil, and of course, that is why we have Shell and SandRidge and Chesapeake wanting to do horizontal. I just drove by the Pauly drillsite, and they already have production tanks in and painted, before the rig has gone and the well is fractured!!!. I would say they be pretty positive :-).
If someone is offering you a 3 yr 2 yr option lease, at $325 or $350 bonus, with 3/16 royalty, I would take it. If you would like, send me your email and I can send you a redacted (yes!!! just like Justice Dept in Fast & Furious :-D ) copy of our lease, which appears to have as much landowner goodness as possible.
This has probably been too lengthy and may have rambled, but I wanted to try to provide as much knowledge as I have. Good luck!!