Notice of Pooling

what is going on in sections 6,7 & 18, township 8 South, range 3 East? Trailhead sent notice of pooling back in the spring 2021 and I see a permit has been pulled, but have heard nothing since. Did they request an extention, if so, shouldn’t they notify owners? Is a lease still considered valid if the well(s) were permitted prior to its expiration?

Welcome to the forum. I moved your question over to the Oklahoma Mineral Rights Love County, OK area.

The Judge 1-67X18 was spud on 5/19/21. The lease is usually considered held until the well finishes drilling if it is spud before the lease expiration date. If the well is productive, then the lease moves into the secondary term and stays active under the terms of the lease until production ceases. The completion report will eventually be posted as form 1002A. They run about four-five months behind.
https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx

The well was listed as “active” on the OK tax site on 10/1/21. Production history is given through December.
https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php

You will probably get a Division Order in about March or April and get first check in about April.
Congratulations!

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Many thanks! Now a couple of more questions please. There were pooling orders for 3 wells. Will they be all under this name (The Judge 1-67X18) or different? Each section 6, 7, & 18 is 640 acres for a combined 1920 acres with percentages of cost and production given to each: Sec 6 ~9% Sec 7 ~61% Sec 18 ~30% If an owner has 12% ownership in sec 7, what would be their net? Is it based on the whole 1920 acres or the 640 acres?

They will pool each section separately for the owners that were not already leased at the reservoir horizon. They pool first (which is something similar to a lease). They have to have the rights to drill first.
The pooling orders will come from the OCC and be under the case number that applies to each. For example, Trailhead pooled on April 17, 2020 Case 202000757. Order 710763. That actually consolidate many cases together for a hearing on May 13-15, 2020. XTO had a pooling order for 2020000630 on Nov 25, 2020 for the Mississippian, Woodford and Sylvan. Their cause was dismissed.

Trailhead also pooled on May 13, 2021. Case 202100458 for section 18. The pooling order was 718337. There were 40 unleased owners, so they were pooled. Horizons were Mississippian and Woodford.

Once the well is drilled and the survey is run, the actual splits of the well will be determined. The equation for royalties will be: net acres/actual spacing acres x royalty x % perforations in your section. (It does depend upon if the well has been spaced at 640 for each section or if they made a larger unit.)

The reason I said “actual spacing acres” is that although the spacing might say 640 acres, the sections along the northern tier and western tier of a township are not always 640 due to the curvature of the earth. They have corrections. You can find the maps on Search - BLM GLO Records

Zooming in: The west line of quarter quarter sections are not 40 acres each.

The Division Order will give the acreage (hopefully). Sometimes you have to look it up or request it.

Just received final order for this. My minerals are in section 7 township 8 south range 3 east. We have 39 acres leased. My lease was up November last year. I have looked up the production for hole well but dont know how to look up for just my section. Any help appreciated. Royalty is 3/16ths

Corey, so you received division orders? Have not on our end. I too would like to know if royalties are going to be paid based on productions/sections or as a whole of a combined field of ~1920 acres.

Yes received them yesterday in the mail. It said nothing about section portions in the papers. Just what had been pulled in hole and well info

Don’t ignore pooling order deadlines, otherwise you will be stuck with the 1/8th royalty in Oklahoma.

The final well splits are listed here. The well was spaced at 640 in each section. However, you can tell from the map above that the sections are not exactly 640, so the actual acreage will be used. Use the equation I gave above to see if the division order decimal matches your calculations. If not, then contact the division order analyst and get them to walk you through it.
The production for the well is not broken out by section on the Gross Production tax site since the whole well bore produces at once.

https://imaging.occ.ok.gov/AP/CaseFiles/occ30447412.pdf

Hey Corey: Maybe this will help some. The formula is approximate, you can change the numbers where needed to be more accurate: 39 acres, divided by 636.90 (I believe acreage in Section 7), times royalty share (3/16ths assumed), times 61.9136% (being the percentage of perforations in Section 7 to the whole wellbore)= 0.0071096 net revenue interest. The 61.91436% represents the percentage of wellbore perforations in Section 7, compared to the total perforations in the wellbore. In theory, each perforation will produce the same amount of hydrocarbons, no matter the section, as all perforations are in the same formation. The production figures you are reading are for the entire wellbore. You use the above calculation to determine what your share of that production is yours. Of course price for the products sold and taxes & possible other deductions are the unknowns. Hope this helps you and Billyboy.

Hi Todd: your posting is most helpful, at least to me, but raises a couple of more questions hopefully you and answer. 1) reviewing November and December productions on the PUN List, did they install a governor on the well as the numbers were lower in Dec; 2) in the relief sought by Trialhead, they specified MULTIUNIT, will there be additional spud sites on these tracts? 3) what was received in the mail was notification of the completed well, not division orders. guessing they will be in the mail shortly. Many thanks again!

Hey BB: I see the drastic drop shown on OTC website and no sure why it would be that big of a difference. They don’t usually choke a well back (you called it a governor). You will have to wait another month or 2 to see what the production is before we can get a good answer on that as there are a multitude of reasons. Trailhead filed this as a Multi-Unit meaning the wellbore passes through more than one unit (section). With most horizontal shale wells, there exists the possibility of several wells. That all depends on the formation and the economics. Not all units are the same as the formation quality will determine how many more wells, if any, are drilled. The DO’s usually come out 5-6 months after first production with the revenue being paid about that time too. You can always hope to expedite that process by making sure the operator has your tax id # in advance. Under Oklahoma Law, operators only need a tax ID to pay, not a division order.

Quick question, I received my division order in Nov 21 on the Mobley sec 21 in Love county, OK. Still haven’t heard from XTO. The well has been active since Jun 21 and the last production history on OTC is Oct 21. Is there something I’m missing?

Did you send the Division Order back and send in a W-9? The OTC is about four months behind in posting. If you have sent it all in, then contact the Division Order department and make sure they got it. See if there is a title issue and why you haven’t gotten a check.

Hi Todd, Rumors have it that 2/3’s of the lateral line collapsed on (The Judge 1-67X18), thus drastically curtailing production. Nov gas production came in at 80474mcf and oil at 6073bbl. Thinking we had hit the honeyhole as our royalty interest in sec 7 is 79 acres. If the rumors are true, Will Trailhead rework/repair this well to get it back up to its potential production or let it keep it going as it is now. Dec: 1930/bbl; 10184mcf; Jan: 359bbl; 6337mcf. March and April numbers not posted yest. I’m sure royalty owners would like to see it fully operational and producing its max.

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