Hello, my mother recently passed and left her mineral rights to me. Just finished Probate in Hughes County courts and sent info into Foundation Energy Management to get me listed and setup. Was told it would take 90 days. I could not locate anything that my mother had concerning lease and royalty agreements and was told I would have to wait to get this paperwork until I am registered with company. Has anyone dealt with Foundation? I’m just curious as what to expect and do I have a right to renegotiate the previous contract. What should I be expect to get on lease and royalties? As far as I know right now they only have one well active and producing LNG also. No info on current production or BOE.
Condolences on the passing of your mother.
Why are you using Foundation Energy Management? Are you sure you have assets that would be useful for them to manage? You can find out what she had by free methods. You can search www.okcountyrecords.com for free. Use the advanced search and try her name, maiden name, other relatives’ names.
Would you be able to tell me what I should be expecting and what I should beware of? What rights should lease for, what should I be getting per barrel or how does that work plus royalties unless that falls into the monthly checks field. I know my mother was getting $79 to $120 each month although that does not seem right to me. It is undivided 1/2 interest of one-fifth part, 31.47 acres Lots 3 and 4 and the South Half of the Northwest Quarter (S/2 NW/4) of section 3 and South Half of the Northwest Quarter (S/2 NE/4) of Section 4, all in Township 4 North, Range 9 East.
S3 T4N R9E L3, S3 T4N R9E L4, S3 T4N R9E SW NW, S3 T4N R9E SE NW, T4N R9E S2 NE
The last it shows is with Corterra Energy in 2018. Foundation from my understanding has an active well on the land and this is who she was receiving checks from. This is the company I have had to submit all documents to. Foundation won’t send me anything I have requested such as lease agreement and well output until they complete the change over to me. I was told it could take 90 days. Checks have been held since April of this year.
OK, That makes sense. They are the operator of the Jewel 1003-2HX horizontal well. The well was drilled in 2018 and has been online since 2019. It is a horizontal gas well. The well has part of its length in section 3 but most of the length in section 10. You will not get a new lease agreement as the well is still in production. You just want a copy of the original lease. The decimal percentage that you get on the well is from an equation. Net acres/actual spacing acres x royalty x percentage of the well in your section. She likely had a low net acres and a low percentage of perforations in sec 3.
The 90 days does seem rather excessive, but you should get a bundled check with the back pay when they have completed their paperwork. The well is healthy and has many more years of life left to it unless something unusual happens.
You may be able to get a copy of the lease by looking on www.okcountyrecords.com. It is free to look. Use the advanced search option.
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