My election order letter didn’t say where to return the choice of elections. so I sent the letter to the attorney that sent it out to me. Do I need to send one to AEP.
Merry Christmas Everyone!
Payne County oil price is settled at the Cushing ‘Hub’ which is the most significant trading hub and price settlement point for WTI as traded on the NYMEX exchange.
US agency gives a nod to exporting ‘processed condensate’. “Political pressure to share the U.S. shale boom with the rest of the world had been building domestically and from foreign trade partners, such as South Korea, and is expected to become a major energy issue in the new year.” (2015)
http://www.reuters.com/article/2014/12/30/us-usa-crude-exports-excl…
“A relaxation (on ban of US crude exports) could raise the prices of domestically produced oil (WTI Cushing OK price). The extent to which domestic crude prices might rise, and global crude prices (North Sea Brent crude price) might fall, depends on a host of factors, including the degree to which current export limitations affect prices received by domestic producers, the sensitivity of future domestic production to price changes, the ability of domestic refiners to absorb domestic production, and the reaction of key foreign producers to changes in the level of U.S. crude production.” Note: Gasoline prices are more closely linked to Brent price not the WTI price.
http://www.eia.gov/petroleum/weekly/archive/2014/141224/includes/an…
Martha, how is Payne County oil priced in relation to NYMEX WTI?
Rob, Very light grades of lease condensate are included in EIA’s oil production data, so the export of ‘processed condensate’ lowers the US oil supply. Tomorrow, US Energy Information will release US oil supply for week of Dec 26th and it should show a decrease in oil supply and WTI price should go higher.
Sandra, (BL) means by lease, however royalty interest is defined as: “An interest in the oil and gas in place that entitles the holder to a specified fraction, in kind or in value, of the total production from the property, free of any expense of development and operation.” Right now, there are many lawsuits being brought against operators charging mineral owners with post production costs, so NARO recommends using this (NADOA) Division Order. I fill in RI (royalty interest) next to Type of Interest, then my decimal interest. Be sure of your decimal interest amount before you sign and send the DO 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.
http://www.mineralweb.com/owners-guide/leased-but-not-producing/div…
Joyce, Is AEW American Energy - Woodford?
Sandra, Devon is calling (BL) Blanchard Interest. No matter what they want to call it, I’m sending the NADOA division order with (RI) royalty interest.
Sandra, Blanchard is OK case law ‘Shell Oil Co. v. Corporation Comm’n, 389 P.2d 951 (Okl.)’ that can affect the price you receive for sale of your share of production. I do not know if the operators object to crossing out the BL and writing RI. I’d check with the operator first and ask why they want you to sign a DO with the BL instead of RI.
Martha, my family leased 80 acres in Payne county. Through the negotiations we agreed to give them 90 business days to verify a clear title. We agreed to allow them an additional 90 business days to complete the title if "the courthouse was busy and they didn’t get finished during the first 90 days. For that additional 90 days we were paid $50 and received that payment. The 180 days are up and we have not received the lease payment of $16000. Do they owe us interest and will we have to hire an attorney or does the OCC have the authority to help us with this? Thanks!
How many of you have had to hire an attorney, when dealing with AEW? If so, do you know of a good Oil attorney in OKC?
Bob, Did you give the lessee an option to lease? If you just gave an option to lease and the lessee changed their mind or simply failed to fund you may have no recourse, but are free at lease to another lessee. However, if you signed an actual lease and handed it over to the lessee, you need to get your signed lease back asap. The OCC is not responsible for private leasing agreements.
Martha - You mentioned that you do not lease for less than 1/4. I had an offer to lease my less than 1 acre portion of 18 3e 24 from Amercan for 3/8. I countered with 1/4 no bonus. They countered 1/5 and 200. I have several small holdings and Calyx always gave me 1/4. My question is; has anyone gotten 1/4 from American? For a small parcel? Trying to decide whether I hold out or go with the 1/5.
Martha, thanks so much for the info on the attorneys. Appreciate all your help.
Joyce, as far as dealing with AEW, we had trouble getting new deeds recorded and division orders issued. We have now been able to get that done, finally, and I got my division order today. I believe they are running about 8 mos. behind on transactions relating to the Calyx to AEW sale. I think my next move would’ve been to go to AEP’s office and ask in a civil way for action on our deed transfer, and try to persevere until someone took note.
As I believe Martha M. had commented a couple of months ago, I can also foresee AEP/AEW & others using the sharp decline in prices, combined with a rescinded lease offer as a scare tactic in order to encourage more mineral interest owners to sell out.
Joyce & Melinda, The attorneys listed below have been recommended by forum and yes, AEW is American Energy Woodford.
Ralph Harrison, Kingfisher, OK 405-375-6484
Steve McNamara, McNamara, Inbody & Parrish, Tulsa, OK (918) 599-0300
Mahaffey & Gore, Ok City, OK 405-236-1520
Martha, we have a signed lease agreement for $200 per acre with 3/16ths royalty.
Bob, Since the lessee has physical control of your lease and has not paid you the bonus money, you need to get your singed lease back right away or they need to pay you immediately. I just posted names of attorneys. I advise contacting one them or attorney Charles McBride in Stillwater 405-624-9990.