Steve, It’s hard to get pressure readings on the well(s) being completed when there are producing wells near by, so they sometimes stop producing from the later for days or months depending on how many wells are being completed.
I thought I remembered you saying that a couple months ago. Royalty checks aren’t regular so I get a little nervous when I read the news about the rig count - not to mention all the earthquake stuff. Thanks again
Martha, with all the rigs being shut down lately I thought I’d check to see if mine is still active but didn’t you say that if they’re putting in another well in the same S/Tn/R (a second has been permitted) that they close the first until they complete the second or something to that affect? Thanks
Yesterday Chesapeake Energy announced it is looking for restructuring options. That means they are in deep financial trouble and are scrambling to find a way out.
IEA is warning oil prices could go lower. Big companies are trying to pull companies like Chesapeake down by the throat.
G. Win, Do not sign that division order until you have full knowledge of the well. There is no legal time constraint for signing a D.O. The OCC records show Marjo Operating Mid Continent is the operator of the well. However, if Marjo has let the lease lapse they need to lease your mineral interest again. They may be trying to can get you to sign a division order so they don’t have to lease and pay you the bonus and possibly better royalty interest. Call the Oklahoma Tax Commission 405-521-3160 and see if there has been a period of no production. If they didn’t produce the well for a certain period of time (according to the old lease or pooling order) they will have to lease you again. Call the Oklahoma Corporation Commission mineral owner help line and tell them what is happening and ask who the current operator of record is, because service companies do not send division orders. Also, try to find the old lease.
Steve, There have been reports of Devon rebalancing production on multi wells where they have taken more production from one well than another and have to stop royalty payments on one well to correct the other well’s imbalance. And, natural gas is difficult and costly to store, so gas is no market no sale. If you think there is a problem you can go to the OCC and get the ‘run tickets’ for your wells. See the first chapter in the accounting article below for explanation of pipelines and run tickets. http://www.beg.utexas.edu/energyecon/Uganda/Oil-&-Gas-Accountin…
Martha,
I have not received any royalty money. My mother passed in 1-20-13. I didn't know the well was producing. The company that sent me the order said that they were taking over the servicing of the well.Oklahoma Corporation Commission help line 405-521-2613
Most of that stuff was over my head but interesting, all the factors that producers have to worry about. Anyway, I’m not worried about the accounting/calculations (so far) just that my rig wasn’t one of the many that were shut down (I don’t know what stage the 2nd well is in, I check the completion reports in the Tulsa World each week). Thanks for the help.
Thank You Martha!! Will do it today!!
My name is Fred Barbour,my wife Linda who posts on the forum has passed away.I may post now and then and will continue with her name.
Fred,
So sorry to hear about Linda. She will certainly be missed by all Forum members. She contributed a lot to this Forum.
Welcome to Mineral Rights Forum.
Clint Liles
G. Win, Marjo is operating wells for third party owners. That means they are operating wells as a group of individuals who are not operators see fit. Marjo is a limited liability business and not a corporate structured business.
Fred, I am so sorry to hear about Linda. She was a blessing to the Forum. Please continue to post. God be with you.
Martha McMorries
U.S. crude production is down less than 5 percent but rig count down about 70 percent since the downturn began, according to the Federal Reserve Bank of Dallas February 12, 2016. Page 4 of 28 shows 2016 excess production declines and 2017 production goes flat. According to EIA chart US and Iraq are keeping production high.
http://www.dallasfed.org/assets/documents/research/events/2016/16sh…
More from Dallas Fed meeting.
Fred,
I offer my condolences regarding the passing of Linda.
Stay on the forum with her credentials and I am sure everyone will assist you in her honor.
Thanks Tom!
Could someone provide the initial production figures for Retha#2 located in Grant county Section 31 -25N-4W.Evidently they have finished fracking this well after starting on it last year.Family member got a division order today stating a January 28 initial production sale.
Fred, OCC and OTC show records for Retha #1, but not #2. May take 6 months after 1st production for reports to show. Can you access OCC and OTC records?
IHS CeraWeek in Houston today OPEC secretary said OPEC doesn’t know what to do about US shale oil. That really breaks my heart. http://ceraweek.com/2016/