Payne County, OK - Oil & Gas Discussion archives

I’ve read a few articles about AEP but don’t quite understand what happens to current AEW leased rights. I have 2 wells in 6/18N/4E, one AEW has paid royalty on for a couple years (its Hildebrand 6-2mh), I just signed a DO for the newest (Rojo Grande) for White Star and received some royalties (paid by AEW). My question is what happens with the old well – could it automatically go to White Star (or another spin-off) or something else. As always I appreciate the enormous help from the forum folks.

Steve: Let us know what they say…tx

I think you’re probably right Sam, certainly for that particular well

Steve, With the name change White Star assumed all AEW’s assets and liabilities. However, I read that Aubrey McClendon was trying to separate some wells out of AEP before he died. The White Star notice included this email address and statment: For questions, please contact ownerrelations@wstrcom

I do remember reading something about AEP doing something with their Mississippian and/or Woodford wells but I don’t remember what specifically was said. Good idea to just call them - I’ll bet their owner relations phone is burning up. Thanks Martha

FYI The owner relations email below needs to have a . between wstr and com. Thanks Jimmy Martin

Quentin, I’ve seen hundreds of leases with:

“Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, except water from wells of lessor.”

You can strike the sentence and see if White Star will except your lease without it.

Yes, hopefully, WTI was over $49 a few minutes ago

Currently EIA reports a decrease in TX Permian production and summer driving hasn’t been factored in. Hoping $60 by second half of this year, but don’t expect $75 until 2017.

I just received a lease from White Star. Is it customary for the lessee to “have the right to use, free of cost, gas, oil, and water produced”? That sure seems like a great way to skim the profit.

Reminder For New Leases: Include the ‘No Deductions’ clause and the ‘Affiliate Sales Clause’ and be sure your ‘No Deductions’ clause includes ‘no processing’.

Email (Tim.andrews@aep-lp.com)) He can probably point you in the right direction.

I just received a check to extend the lease option on the well in garfield county. Maybe things are looking up.

Thanks for the info Martha. FYI, talked to White Star Owner Relations this morning regarding DO for the first two wells in Payne that started producing on 2-13. They said they had 6 months to get DO’s out so it will probably be August. Was hoping sooner but I can wait. Still waiting for Drilling Permits to be issued for the other two.

My minerals in Payne County are held by production from a well completed in 2012 by Devon. In Sept 2014 (prior to price crash) I received a letter from Devon that they planned to drill 3 more wells which never happened. The first court docket results were that they were recommended but reopen at later date. I have been watching the court dockets since that time and the location exceptions for those 3 wells have been continued multiple times since 2014. My question is, can that go on indefinitely, or is there a time limit that after which Devon will be required to re-apply? Was just wandering as I read a recent article that said Devon would make no further significant expenditures below $60 oil.

Steve, I have had conversations with Laura Sterkel at AEW Owner Relations. She has now transitioned over to White Star. Her direct email is laura.sterkel@wstr.com Hope this helps Jimmy Martin

Quentin, A lease can be negotiated after a pooling order is issued, but the rules change and you will definitely need an attorney to review your lease. Bob is right. It’s always worth having an attorney review your lease. Also, it’s highly important to have a no deductions clause which includes no processing, an affiliate sales clause, a continuation of drilling clause and a horizontal and vertical pugh clause in your lease. The attorney will have knowledge of all clauses.

I got a reply from my question to AEP from non other than Laura Sterkel, with all the White Star contact information one could want. She was always helpful and quick to respond in the past, so glad she’s still employed. Thanks to all for the help.

KDM. It can go on forever as long as Devon has highly justifiable reasons for the continuations and the new rules on salt water disposal wells brought into existence new ongoing conditions and expenses.

Laura is about the only one in owner relations at White Star. Remember oil companies have been slashing and gashing employees. So now one person is doing the job of many. Yes very frustrating when they do not list a phone number. I called the number on my check stub and someone answered.