4 of 6 wells in my Section 14 Payne County are shut-in by White Star, they said a few needed new pumps, that was 2 years ago…still shut in…
Look at your lease and find the shut-in clause. This clause should state the number of months or years your well(s) can remain in shut-in status. Under an oil and gas lease, the lessor will receive payment of a dollar or more per acre while a well is shut-in and can put a term limit on shut-ins so the lease will expire if the well does not go back into production.
I sent a litter to Guy Clark, my attorney in Ponca City, Ok, he said as long as you are getting something, you basically have to sit tight and wait it out, and I get a couple small checks every month. An So It Goes…He looked at the leases’s. Then charged me 150 buckaroos for the advice LOL…
Thanks all for your replies. I guess that I will contact WS again and talk to them. We do have an “inactive clause” in the contract for 90 days but no $$ amounts.
U.S. light, sweet crude oil (like ours from shale formations) accounted for more than half (56 percent) of total domestic crude oil production in 2017, and in the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2018 (AEO2018) Reference case, this share will grow 6 percent by 2020 and to 70 percent by 2050.
David and Bob, You may receive shut-in royalty payments but they are not the same as production royalty payments. Your lease should have a sentence that reads something similar to this: “Lessee shall not have the right to continue this Lease in force by payment of shut-in royalty for more than a single period of up to two (2) consecutive years.” Meaning the company has 2 consecutive years after beginning shut-in royalty payments before the lease expires. Your sentence may state 1 year or 3 years etc. Find out what type of payment you are getting. Is it shut-in royalty or production royalty?
The last check that we received was back in July of 2017 and it was for royalties from May of 2017. I called sometime sept-nov '17 and that is when I was told by Whitestar that our wells were in “shut in”. He could not tell the reason why just that was the status. Since July we have not received anything and the contract does have a 90 day inactivity clause…
David Pote, I would contact an attorney and tell then you need a Release Of Lease sent to WS based on Breach Of Contract for lack of timely production and shut-In royalty payments according to lease terms. Attorney for small mineral owners: Micah Adkison at Crowe & Dunlevy in Oklahoma City. Phone 405-235-7700.** **
Looking for anyone that has had recent issues with Crown energy. It seems that they have turned over staff and we have had ongoing attempts to talk to them about our leases. Have sent in writing our requests and now they won’t talk to us. they said we had to get an oil attorney to prove ownership of minerals. They did all of this years ago.
What happens if a company gets all the paperwork completed including the pooling and the OCC has given the drilling permit but they haven't drilled in 3 years. Do they have to start the paperwork process over again in order to drill. I signed a 2 year lease extension in May of 2016. Do they have to go back to the commission to apply for a new drilling permit??
Usually Pooling orders are only good for a certain time frame. You would have to read in the pooling order to see the time frame.
Permits to drill expire and can be extended by paying an additional fee.
That is what I thought. Thank you!!!
Will someone please reach out to me. I want to sell my twenty-seven acres in NE/4 2-18N-5E and my twenty-nine acres in W/2 1-18N-5E. Also I want to sell my 0.027 ORRI in 28-18N-5E
Sidney, Have you tried the Mkt Place on this forum?
I read last night that some in the industry think oil will drop considerably in a short period, then rebound to around $90.00 b/4 2019. Any opinions? JC
JC,
A few weeks ago Exxon announced a 50 billion continuation of TX Permian and Gulf offshore drilling. Speculators are guessing Exxon wants to profit from this big US expenditure. However, China needs a few more million barrels to fill it's strategic reserves. Will oil go low for China then up for Exxon. Who knows for sure.
I received a royalty check for Dec production today from Sequoyah Energy Holdings LLC. in Oklahoma City. I didn't know Whitestar had sold rights. Whitestar had lease as acquied from Devon.
Anyone else seeing this? Well is Long Branch 9-20N-2E and was drilled and owned by Devon before Whitestar acquired leases. Can't seem to find a number for Sequoyah Energy Holdings in Oklahoma City. They are not honoring terms of my lease by deducting transportation charges. Actually on the statement they combine tax and transportation charges. Others may want to look out for this company if your wells in Woodford or Mississipian in Payne County.
Phillip, Sequoyah Energy LLC's registered agent is Justin T. Hiersche and there is an OKC attorney named Justin T. Hiersche at:
Blaney, Tweedy and Tipton
204 North Robinson
Suite 1250
Oklahoma City, OK 73102
Phone: 405.235.8445
Fax: 405.236.3410
Martha, Got busy and forgot to thank you for your reply. JC
Thanks Martha., the return address on the check is 1000 W. Wilshire Blvd STE 207 in OKC. I plan to stop by there and see whats up. I would have thought that Whitestar would have let be known if there were a change.
Can't get them to return call, or corporation commission either. I'll see if I can find info at Hiersche. Not much money involved but bugs me these companies nickle and dime Mineral rights owners.