Is Payne County oil Sweet or Sour?
Rob, I believe it’s mostly sweet. If the sulfur level is more than 0.5% the oil is called sour. However, sour oil can also contain hydrogen sulfide which is highly toxic and corrosive. Maybe other forum members know if sour wells are located in Payne.
The big boys are not hurting. Exxon has $34 billion to spend in 2015, 12% less their 2014 budget, but plans to increase gas production by 2% and oil by 7%. Chevron Corp. (CVX) cut its 2015 budget by 13% to $35 billion. Both companies are renegotiating oil & gas field services contracts to offset lower prices and neither company is having to sell any real estate. So far, we are winning. Go USA!
The US and EU are seeking more sanctions against Russia. Russia produces10 mill bpd and any decrease in production will help stabilize oil prices. Due to recent oil field attacks, Libya’s oil production has decreased by half. Iraq and Iran are both highly volatile and a major disturbance could send oil prices up.
Payne County has some of Oklahoma’s oldest and most poorly managed oil and gas fields. Some industry professionals estimate the old fields contain as much as 60% the total oil that was left in the ground when the old wells were abandoned. Horizontal drilling and new, but simple, enhanced oil recovery techniques will dramatically increase production in the old fields. Right now, operators are waiting for oil and gas prices to increase.
Martha, checking further on AEP’s messed up figures for a new well where we are involved, I see that the OTC’s production log records list two sets of production numbers for this well (legal 2618n04e, but the bottom hole is in sec 23): one set for the surface hole and one set (much lower figures) for the bottom hole. AEP seems to have based our royalties on the bottom hole figures. Can you shed some light here? Sam
Sam, There are many wells in Sec 26. Friend me so that I can send you detailed information.
Derek, Attorney Charles McBride in Stillwater handles title changes for our trusts 405-624-9990.
Could someone with the knowledge about re-titling mineral deeds into a trusts please help us? My wife and I recently had a trust created in California where we live and both of our mineral deeds are for Payne County and need to be re-titled in our trusts name but our attorney stated that she couldn’t change these and have them recorded in Payne because she doesn’t have a license to practice in OK. Do they need to be transferred, quitclaim or rewritten and then recorded?
Martha, could you estimate the recovery rate in Payne county Woodford shale?
Rob, I have my questimate which could be wrong. Here’s a website with some good info, but you have to dig for it and pay for it. http://www.ogs.ou.edu/level3-oilgas.php
Martha, I saw once you said it would be good to send a copy of the signed Stipulation of Interest to the attorney and OK Corp Comm as well as the oil co. Is this correct?
Joyce, Yes, and send all by way of certified mail with a return receipt or some other type of proof of mailing and receiving. Also, be 100% sure your interest is correct before signing and sending and check the wording of your Division Order as it can change your lease. Here’s some DO info. http://www.mineralweb.com/owners-guide/leased-but-not-producing/div…
Thanks, Martha
Joyce, If your parents estate was probated, you should have separate mineral deeds. If not probated and you all filed a affidavit of heirship, then there could be some hold ups, because an affidavit of heirship does not transfer title and some oil and gas companies will not except the affidavits. Many mineral owners believe the affidavit is the same as a deed, but it is not. I suggest doing a “simplified probate” and separating the minerals by way of mineral deeds. Here’s the rules for simplified probate which is less expensive than probate.
You can use the simplified small estate process in Oklahoma if the value of the estate is $175,000 or less ($200,000, effective November 1, 2013), or if the deceased person has been dead for more than five years, or if he or she resided in another state at the time of death. 58 Okla. Stat. Ann § 245.
Ok, Will have to think about all this. There is not very much money involved, but one person is upset and threatened to not get his part finished. This has been a long year process and now this bump in the road. We are dealing with AEW,so that may be another bump!! Thanks for your info, Martha
How do you find out when the first sale was on minerals? I can find where first production on 21 18n 01w was last August.
Martha. I did get the SOI and DO signed and sent to propers. Now I have another question. This is deceased parents land and there are 3 heirs. At this point, one heir passed away… Oil co has decided everything divided 3 ways. I know the heirs of the one has to provide death certificate and heirship. Will this delay payment to the other 2 heirs, or do they have to wait for the other ones family to provide all this? Does one heir’s position affect the other two?
Joyce, With AEW involved and a person upset, I do suggest you get your mineral interest completely separated and secured by clear title mineral deed. Your interest may be small, but there are many more wells to be drilled. Charles McBride is an attorney in Stillwater who might be able to help 405-624-9990
Panye county 21 18N 01W