I sent a signed division order to AEP / AEW with signature required. It went to the 73114 post office (Britton) instead of to a 73113 post office - the AEW zip code I mailed to. I saw that it had gone to 73114 and contacted AEW. They did pick it up, and I got a signature confirmation - a week after it arrived at the p.o. I don’t know if that was a mistake by the usps or if AEW gets mail at 73114 and just doesn’t pick it up regularly.
Folks, Don’t get discouraged. If you haven’t been paid, get your signed leases back. Take this down time to review your lease documents and know your force pooling rights. You’ll be prepared for the next round. Always get the lessee to make the lease offer in writing, then get an attorney to review your lease and exchange your lease when they receive your lease bonus payment.
AEP released my minerals the first of December. I had to call them about mid November and ask if they wanted to release, no answer from them till I said I was speaking with Devon. Check was at my door in 4 days…Payne County…
Friday, American Energy notified us they are withdrawing all offers to lease to the family members who have not mailed their signed/notarized their leases by today, 1/16/2015. Several members never received their lease, and very few who did sign last fall never received the lease money. Mr. McClendon is staying true to his reputation - he drug leasing our minerals along for nine months, and now the low price of oil gave him a legitimate reason to rescind the lease offers. Tied up our land, and now no money. Amazing. But, we’re not surprised.
Devon has stated Division orders probably in February, production wasn’t until August. Not going to be a big well, but it is still ok. I am in the very southeast corner of Garfield, in close proximity to Logan and Noble. At times I had even thought it might have been in a confidential status, but not so. I finally saw the completion report once and then spoke to Devon and was told it was completed yet, never knew why on that.
Bob that is one way to get someone on the ball. Devon bought our lease in Garfield County and drilled at end of January 2014, finally announced a completion report in October, 2014, and we’ve wondered ever since then what is really happening, very tight lipped. Best of luck in getting a well, I did not we will see.
Ask Martha, you should call the OCC and see what’s goin on…
"Companies Are Buying Oil Now to Sell Later When Prices Rise”
http://www.wsj.com/articles/worlds-largest-traders-use-offshore-sup…
There are not enough oil rig workers in the US. Lone Star College in TX is offering a fast-track pilot program that is teaching the core technical skills needed to work on a rig, in ten weeks. Hundreds are moving into TX everyday. Texas oil and gas fields development is just a few years ahead of OK’s.
Deborah, Due to low oil price, operators are not full out producing the wells right now and are storing oil instead of selling it. Right now, completion and production reports may not be indicative of your well’s potential performance.
Deborah, tight lips mean really good wells. Right now, our area is in a holding pattern. Once TX fields are more developed, rigs and workers will move out of TX into OK. US shale development is a enormous undertaking.
Traders are storing Africa’s oil in the US and will make a handsome profit when US oil export ban is lifted. Congress wants oil ban lifted this year (2015) and traders know it. Also, US producers are storing oil at the WTI lower crude price, which is the US price, and will sell it at higher Brent price, which is the global export price.
http://thehill.com/blogs/congress-blog/energy-environment/229822-ne…
http://thewoodfordshale.net/2015/01/16/oil-traders-to-store-w-afric…
Deductions from royalty for natural gas: AEP deducts about 5x more from gross royalty than the producers of our conventional wells do. They provide some detail for the amounts they deduct and the taxes are easy enough to understand. But 2 of the largest deductions are for “Processing” and “Fuel.” Can someone explain what these are and how would I know they’re appropriate?
GWT, Natural gas that comes from oil wells in called associated gas and it is made of a little methane and a lot of natural gas liquids (NGL’s), but OK laws allows the producer to classify NGLs as condensate and they claim the NGLs have to be removed from the gas to be transported as pipeline quality natural gas. Sometimes part of the NGL’s are removed at or near the wellhead, but the complete processing takes place at a processing plant and it takes fuel to run the processing plant. I don’t know for sure, but guess that they are charging you for the fuel it takes to process the NGLs. Do you know if you are getting the NGL price or wellhead gas price. What they charge for deductions and the price they pay should be determined appropriate or inappropriate by the wording of your lease, but wet gas NGLs is not like dry methane gas, so AEP claims it has to process it to make it marketable and OK law has not defined “marketable condensate”. In fact, OK law has no definition to determine what is or isn’t condensate. Your deductions are what happens when the law makers allow the producers to make there own determinations and interruptions otherwise know as their own laws.
Thanks, Martha. I’m not sure which price I’m getting. I think its the wellhead price. But the things you describe below (seems to me) every producer would have some comparable costs, wouldn’t they? So you’re saying maybe the vertical well producers are paying based on NGL price and that’s why they deducted 7% while the horizontal well producers are basing it on wellhead price and that’s why they took 37%? (or maybe its the other way around, I think). Where would I go see the NGL and wellhead prices (I assume there’s a spot market and daily rates published)?
GWT, Here’s a website with the NGL composite per barrel price already calculated. Look at NGL Bbl on charts at the right hand side of page that lists January 7 Mont Belvieu (TX) Hub Prices $19.63 and January 7 Conway (KS), Group 140 Hub Prices $19.53 http://www.midstreambusiness.com/prices-natural-gas-liquids
EIA: Stable oil production outlook in Lower 48 despite near-term rig-count reduction
HOUSTON, Jan. 26, 2015
http://www.ogj.com/articles/2015/01/eia-stable-oil-production-outlo…
GWT, Conventional dry gas was usually price at the wellhead - Horizontal wet gas, as in natural gas liquids, can be NGL composite price per barrel. http://www.eia.gov/dnav/ng/hist/ngm_epg0_plc_nus_dmmbtum.htm
You have to take the U.S. Natural Gas Liquid Composite Price (Dollars per Million Btu) times 4.2 to convert the BTU price to price per barrel.
Example $8.75 U.S. Natural Gas Liquid Composite Price times 4.2 Natural Gas Liquids million BTU per barrel equals $36.75 US Natural Gas Liquids Composite price per barrel.
Martha - Thank you!