My 5 siblings and I have a combined 6.67 acres of rights in Payne County and are trying to decide if it’s worthwhile to involve a lawyer to review the leases we’ve just been offered. While we don’t want to be totally gouged by White Star we do realize that there has to be a point at which involving a lawyer probably isn’t going to be cost effective. Is there any rule of thumb for determining this?
I just tried to contact White Star (their ‘change of name’ notice says contact ownerrelations@wstr.com). That address gets you to White Star’s main website - under contact us they list info@wstr.com which leads right back to the main site; the other contact sources listed are mailing address/physical address…no telephone numbers, no mention of owner relations. Pretty frustrating. Has anybody had better results. Thanks
Bob, I had emailed my question to AEP owner relations first (I copied it expecting to paste it in White Star’s owner relations but obviously ran into a dead end there) I’ll wait to see what AEP’s reply is then try your suggestion if I need to. I’m surprised that White Star doesn’t have a good owner relations set up. Anyway thanks for the help -
I should have also asked if a lease can be negotiated one a pooling order is issued.
What did they offer? Mine was $250 an acre 6 years ago…I had Guy Clark Attorney in Ponca City, review mine, did not charge much. Worth it I think…
Sam, Is your well producing ‘dry natural gas’ (NGL) or ‘liquid natural gas’ (LNG) and do you know the API gravity weight of the oil? Condensate that is stripped out at the well can be classified as oil or condensate as it is only a matter of pressure and temperature to split it. It is in gaseous form at depth and at surface is in liquid form. It is stored and sold from oil tanks. Condensate that is removed from the gas at the lease does not need cracking, but I’ve seen them code it as all plant products.
Again. Thank you for your help. I’ll get the numbers and figure it out. I really appreciate your sharing your knowledge. Sam
Sam, I was trying to explain the reason that Devon could have changed how it reports oil and gas and is now coding oil as condensate and gas as all plants products. Sorry I didn’t make myself clear.
Sam, It’s possible they are coding it differently at OTC than they are when paying or they could have stopped selling oil and gas and are only selling condensate. Still, you need the API gravity weight to know exactly what they are coding as condensate and what they are cracking and coding as all plants products.
Bob, I think the analysts just read our posts. Oil price is up because US oil production is down. ND Bakken production fell first and TX Permian production is now declining. OK is still very active. OPEC is producing flat out and any world oil decline registers upward price movement. Any increase in demand registers upward price movement. And any supply decrease from act of terrorists or war will register upward price movement. Oil price has no where to got but up until higher price spurs new production. Yes, delusional $80 or $90 in 2016-17, but if we don’t see $75 by end of 2017 the price will go even higher in 2018 than the analyst predict because US production will continue to fall. http://www.mineralrightsforum.com/groups/group/show?groupUrl=payne-…
Secret information concerning oil and gas is a century old corruption scheme. The US government does it and gets away with it so the States believe they can also. OTC says the poor record keeping is due to lack of funding. I say it’s border line criminally convenient.
http://www.msn.com/en-us/money/markets/the-untold-story-behind-saud…
Heard back, sorry…
A financial analysis said yesterday that since OPEC is doing nothing oil will reach 60 to 65 dollars a barrel in the next 12 months. Anyone he said that thinks it will be 80 or 90 is delusional…
I believe 72 dollars is the key to start pumping and making money for the Oil companies…That is what I heard years ago…So I am wishing for 72 bucks a barrel. But this gentleman said no way…65 dollars tops for this year and next…And So It Goes…
Sam, OTC is 14 months behind reporting production on my Payne Co well. I have been getting checks each month and paying taxes, but OTC’s last production report was April 2015. I have no way of telling if OTC numbers agree with mine.
Sam: I was wondering about the reporting also, so I sent an email to Ms. Merkle asking her why no Oil #1 is not showing, but on the checks it does. I have not herd back. You might ask her also.
Sam and Bob, Condensate is in liquid form at 14.7 psia. which can be coded as very light oil because it is liquid at the surface (atmosphere) and is sold from atmospheric tanks. However, heavier condensate that is stripped at the well (lease) should bring a price closer to the price of oil because it is stored in the oil tanks, picked up by the oil hauler regularly and sent right to market.
The plant in crescent makes NGLs by taking the wet gas and striping out the water in a dehydrogenation unit then cools the gas using an expander/JT unit. Cooled down around -170F they separate the propane from the methane and ethane. The ethane can be cracked to produce ethylene. They sell the propane and send the methane to a pipeline that buys natural gas for heating homes etc. Ethane is the only ‘all plants product’ that is cracked.
Here’s a forum post I made over a year ago.
“All the info I find claims that currently there is no fully defined definition of wet gas which can be anywhere from humid to multi flow and along with the reservoir temps etc. it’s not being correctly measured and the measurement will continue to be guessed at until it’s universally defined and measurement rules and regs for metering are created. I have not been able to get a definitive answer from the OCC of it’s position on the companies not measuring the condensate and correctly paying the mineral owners? It just doesn’t seem possible that companies are not accurately measuring the liquids in the gas, because they should legally report what each well is producing.”
This volumes reported thing in Oklahoma is just a big mess. Seems like maybe the last time I got into it, OTC only had oil volumes that they cared about being reported. OCC used to be only interested in Gas volumes. Now when I go to either to view production it seems like it’s a toss up whether anything at all is reported and if it is reported it’s very difficult to figure out what they have done. I don’t understand why between these two government organizations they can’t report oil, gas, water or other volumes at either OTC or OCC and why the companies can’t consistently stick with it. My .02
Sam: Let us all know what you find out…
“EIA continues to raise oil-price forecasts for 2016-17”
http://www.ogj.com/articles/2016/06/eia-continues-to-raise-oil-pric…