Payne County, OK - Oil & Gas Discussion archives

I received division orders for 3 wells and noticed that the “DATE” and “EFFECTIVE DATE” both say 1/1/2013 - long before our lease was signed. I’ve asked White Star about this but so far haven’t received a response. Do these dates have any real significance? I just didn’t want to return my signed DO paperwork until I knew.

Martha, it’s Section 34, Township 19N, Range 2E

Wells are ALDEAN 34-27-19N-2E 1WH, ALDEAN 34-27-19N-2E 1WH, and BOOMER 34-27-19N-2E 1WH

Quentin, the “EFFECTIVE DATE” should not be a date. It should read “Date Of First Sale”, however White Star has not provided the date of first sale on your 3 well’s Completion Reports that they filed with the OCC. White Star should have sent you Spacing Orders and Intents To Drill and those dates are important also. Looks like White Star drilled section 27 from section 34 but did not space as multi section, however they may be trying to pay production as if it’s multi section. No can do. You should determine your royalty interest before signing the DO and I would not use WS DO. Ask White Star, in writing, for a copy of your royalty interest as it appears on the Unit Summary in a Division Order Title Opinion and Date Of First Sale and the Name of Purchaser for each well. Also, Do Not Use White Star’s DO

**. Instead, **NARO recommends using this (NADOA) Division Order http://www.nadoa.org/forms/div_ord.pdf and include this statement:

THIS INSTRUMENT DOES NOT MODIFY OR AMEND THE TERMS OF ANY OIL AND GAS LEASE. ALL ROYALTIES DUE AND PAYABLE UNDER ANY OIL AND GAS LEASE SHALL BE CALCULATED AND PAID AS PROVIDED IN THE LEASE. THIS DIVISION ORDER IS EXECUTED WITHOUT CONSIDERATION AND MAY BE REVOKED AT ANY TIME.

I sent in a letter to release my mineral rights due to no production for a year. I had not heard from the oil company yet after 90days. I decided to check the well out of curiosity and it was pumping. What happens now??

The company has to pay you for your production royalty interest at least once a year. If they still are not paying and you can prove the well is and has been producing, you can contact an attorney and have place a lien on the well.

They can wait until you have a certain amount before they have to write you a check. And, they can shut the well in (stop producing) for a certain period of time (time period is in your lease) but they have to pay you a shut in fee amount according to your lease. You may get another small payment next year and they can do that as long as the amount stays low. You may just have to wait a while longer. It’s a good sign they will pool and start drilling again because they wanted to buy your minerals.

Martha, Thank You. I inherited these royalties. I do not have a lease. Do I contact the company request a copy, or is one on public record at the courthouse??

They used to only pump my well every other month. Now I am not sure how often they are pumping the well. Do the only sell the oil when the tanks are full?? I had a small payment from them 1-31-17. However, no payment in 2016. They made me an offer to purchase my minerals/royalties 2 years ago. I did’t accept. I believe they want to pool the section some time.

G Win, Go to http://countyclerk.paynecounty.org/ and select Land Records, then Land Records-County Clerk.

Martha, i didn’t find any lease information. It only has the quit claim deed. Do I call the company to ask for a copy. The well has been around for many years.

I did see an asignment of overriding royalties have in to do with American Energy Jan. of this year.

G. Win, It could be that the well is on a spacing that does not include your minerals even though it is in your section. What is the well name and legal location and where are your minerals located in the section? I’ll look and get back with you. Give me your

legal description again.

My minerals are located 17-19N- 02E W/2 SW/1/4.
WELL NAME IS BASS #1.

G Win, The old Bass vertical well was drilled in 1984 and reentered in 1995 and it is now producing oil from the Mississippian formation. These old vertical Miss wells can produce 40 years or more, but only a few barrels per month. They are trying to keep it productive until another company wants to drill a horizontal well, because that company will have to buy the old well. Until then, you may only get a check once or twice a year. I’m guessing price of oil is going to have to go above $60 before a big company wants to fully develop your area. I couldn’t find your lease. You may have to get an attorney to help you get the lease.

Thanks Martha!!! Thanks for trying.GWin

Sidney, it’s hard to judge the value of mineral acres with so little to go on. If there is an expectation of further development in the future? You might collect that royalty for another 60 months and then still sell the acres for $4,000 per acre or possibly more. If you aren’t in desperate need of the money? You may take your time. Remember if you have held the property for more than a year you will be subject to 15% capital gains tax and $4,000 per acre instantly turns into $3,400 per acre after tax.

Sidney, Prayers offered to the Creator. JC

Sidney, r w kennedy is right. Prices are low now due to oil price being low. Prayers for your wife.

Tom, Martha, RW and JC, Pamela out of hospital after two surgical procedures of open reduction and internal fixation Right Tibia/Fibula Fx. Thank you to everyone of the group for your prayers. I will never forget such. Sidney

Sidney, Glad your wife is better. It’s impossible to determine an average production for Miss. or Woodford. Production rates are all over the board going from 10 bbls to over 1,000 bbls.