I’m dealing with similar issues to James’. I’ve been thinking about filing a complaint with OCC before I spend money on an attorney. Does anyone have experience with that?
Bob, yes. Sounds like I’m not alone.
James, I’ve been dealing with this same company on similar issues. They will keep putting you off until you get an attorney and get after them. If you are serious I’d tell your attorney to send one demand letter and if they haven’t gotten it cleared up in X days then you are filing in court. Otherwise they will just keep playing basketball with your Attorney, both sides Attorneys making $$$ while your out money for them on their game. It is is either swift and quick or it will cost you more money than the royalties you are being paid.
Martha, Thank you very much. I’m not at all knowledgeable about this. After posting my last comment, I figured Tax Commission. Will try doing as you suggest.
Bob, It’s not profitable for them to drill much below $35 in most places, but at around $20 to $25 they can continue producing the wells that are already drilled. If the price of oil stays low, they will have to drill only the very best wells. For example: A well that costs 1 mil to drill & complete, but produces 1,000 barrels per day will be drilled instead of a well that costs 3 mil which produces 2,000 barrels per day. So, until the price of oil goes back up to around $100 per barrel mineral owners need to know the cost of wells and the production in and around their section to determine how much their minerals are worth for leasing and/or participation. Oil will go back up, but it may not for another 18 months or 2 years. Some big market analysts believe the longer it stays low the higher it will rebound back up and see it top at $200 then edge back down. 5 years is the historical shake out time it takes to complete this cycle, but we are in uncharted territory.
Bob, The oil field service industries have drastically lowered their charges to help the shale development continue, so the producers keep readjusting how low the price of oil can go before they lose all profits. At first they said $75 to $80 was as low as it could go, then costs started coming down.
GWT, is your problem with AEP also?
JC, Thanks. I’d appreciate hearing how this goes.
GWT, I sent a friend request a couple of hours ago. I could have just responded here but didn’t think about it. I sent an email to the OCC last Friday. I received a response from Donna Darnell this morning. She said she would be out of her office until Wednesday and would review my complaint at that time. I have family and 2 friends with mineral rights on the same wells as I, and they’re wanting some action also.
It is very important for mineral owners to understand the US Government EIA’s new terminology Hydrocarbon Gas Liquids (HGL).
“To reduce confusion in terminology and improve its presentation of data, EIA has worked with industry and federal and state governments to clarify gas liquid terminology and has developed the term Hydrocarbon Gas Liquids, or HGL. However, HGL does not include liquefied natural gas (LNG) or aromatics.” http://www.eia.gov/analysis/hgl/pdf/hgl.pdf
Data findings on microbially enhanced oil recovery (MEOR):
Oil recovery by MEOR was 19.48% of the residual oil in the core after waterflooding.
They already sent and OK’d the Increased Density and Location exception there is a rig #41 on site. Was to start drilling the 3rd of Feb…But I received no Intent to Drill on Section 14.
OK, thanks going to send you a email…
Bob, AEP should send you a increased density and/or location exception first, but I don’t know how long it will take. OCC must have made some decisions on that fault in the Sections to the south of your Sec 19. because this weeks docket is loaded. I just looked and Docket for 2/17 - AEP in Sec 23-19N-01W has 3 location exceptions (CD 201408972, CD 201408973, CD 201408974) and 1 increased density (CD 201408975), 2/17 - AEP in Sec 24-19N-01W 1 increased density (CD 201407051), Devon in Sec 25-19N-01W - location exception (CD 201207423). OCC weekly docket is where you can find these.
Very important article on Payne County. http://www.sciencedirect.com/science/article/pii/S0376736109700627
2/17 OCC docket weekly hearing on Sec 34-19N-01W microbially enhanced oil recovery field plot ftp://ftp.occeweb.com/dockets/docket/week.pdf
Martha, Did I understand correctly, using MEOR, there would be more oil recoverable? Thanks, JC
Martha: Is AEP suppose to send you a Intent to Drill Order. If not, where on the OCC Web page do you look it up??tx
JC, Yes, more oil will be recovered using MEOR.
I spoke with Tim Andrews today, I had some questions re: drilling and he called me and advised what they were going to do. As far as payments go, they released my mineral section at the proper time, but other than that, I can’t help as far as royalty payments go…waiting to see myself.
Bob, There is a Permit to Drill, but there is no Intent to Drill filed with OCC or Notification to Spud for Section 14. When OCC gets these filings they will post on OCC web site: http://www.occ.state.ok.us/ Go to Industry - Oil and Gas - Imaged Documents - Oil and Gas Well Records Forms - in Legal Location type in 1419N01W and hit search.