My two brothers and I received another offer to purchase our mineral rights, as listed above (S13-T16N-R07W, in Kingfisher County). Together, we own 1.071 net mineral acres. The offer is $3,600 per net mineral acre.
Published in the Kingfisher (Oklahoma) Times & Free Press on July 16, 2017, is a legal notice stating that Marathon Oil is bringing a cause before an Administrative Law Judge requesting Pooling for all of Section 13, Township 16N, Range 07W. This cause was scheduled on the Initial Hearing Docket at the Corporation Commission in Oklahoma City on August 7, 2017.
If the requested pooling is approved and ordered, what will that likely mean to my brothers and me, given that we in total only own the minuscule amount of 1.071 mineral acres? We have no prior experience in these matters, having just been notified about two weeks ago that we had inherited these mineral acres. I am curious as to whether 1.071 mineral acres is too small to get even noticed in the process. What do you all think?
It depends on the regulatory order type. Some order types only apply to working interest owners in the area covered by the application. Other order types cover mineral owners and working interest owners.
If you just inherited the minerals, they still may be under a different name and you would want to look at the respondents on the application to see if the name of the person you inherited them from is listed.
there is an Emma Heine listed as a respondent on both pooling app 201704427 and HZ app 201702464
links are below:
http://imaging.occeweb.com/AP/CaseFiles/occ5370763.pdf
http://imaging.occeweb.com/AP/CaseFiles/occ5396125.pdf
Emma Heine is my grandmother (deceased).
If the order were to cover mineral owners, what would that probably mean to us as owners?
By law, they have to notice you. Your 1.071 minerals must be accounted for in both leasing and royalty payment. This is an interesting section. Both Marathon and Newfield were trying to pool. The well spud before the hearings in some cases which is unusual, but not unheard of.
The White 1607 1-130H was spud on June 19, 2017
The cases that pertain to you are many. Look them up on the OCC website. http://imaging.occeweb.com/AP/CaseFiles Type in the numbers in the case file box. Newfield and Marathon were both trying to get control of the section. Read them and get familiar.
201702637 Location exception NF, 201702636 pooling NF, 201702634 Exception NF, 201702633 Horizontal NF Newfield's pooling was dismissed.
201702464 Horizontal MRO (Marathon), 201702465 Loc Exception MRO, 201702467 Exception MRO, 201702466 Exception MRO, 201704427 Pooling MRO
You need to get in touch with the attorneys handling the Marathon cases quickly. It is listed in the documents. Tell them that you are heirs of Emma Heine and what information do they need to put you into the proper title chain. They may need a probated will or affadavit of heirship. When the pooling order is posted, you have only 20 calendar days to respond. I always pick the highest royalty and the lowest bonus because in the long run, the royalty usually makes more money. You only get the bonus once. If they drill multiple wells, then you want that higher royalty (Section 12 right next to you has at least seven wells, so that is a future possibility for you.) No matter what, watch the pooling and answer in the correct time frame, even if you have to answer as the "heir of XXX" because you will be assigned the lowest royalty at 1/8th and the highest bonus which is not the best option for you. Make sure you send everything by certified return receipt mail so you have a paper trail and proof of mailing. Start a folder and put everything in it.
oh thought yall were talking about 18N-9w-13, same situation but marathon let it expire. Do you know what is going to happen ?
Marathon had some more court hearings in late December 2016 for a horizontal well Gary 1809 1-13MH. They have a lot of Payrock land to catch up on. Might just be a matter of timing.
Warren,
Your minerals are worth considerably more than the 3,600/acre offer. They are trading for almost 4 times that in your part of the world.
You can get that much to lease, not sell. A Kingfisher attorney should give you some free advice.
Can you recommend one, please?