I will call now. Why would the check be written 2 months ago and i received it yesterday???
G Win, Congratulations! Chaparral is drilling in 20n-07W and maybe the drilling is headed your way. Mississippian Lime formation is good in your area.
Martha have you heard of him??
G Win, Yes, Monte is the same landman Charles McBride recommended to me, but he was very busy, so I had to run records myself and didn’t use him. However, I’ve known Charles for over 25 years and he is a good person, so he probably would not recommend Monte if he didn’t trust his work.
I signed a 3 year lease plus 1 year option 2 years ago. Yesterday I received a lease check that said additional consideration under original lease. However, the third year would end in May 2016. Why did they send it early?? does this mean they are not planning on drilling before the 3rd year was up???G Win, The may have found you own part of the 53.3 acres. If so, they may have not paid you for the correct decimal amount of your royalty interest, then the division order title opinion was completed and it showed you owned more. Tony’s right, you need to call the operator and find the reason for the additional consideration.
G. Win, if you are happy with the lease terms given, and the interest was acquired prior to the execution of the lease, you would be good to go to cash the new check. However, there are instances in which you may want to look into further as to why the leasing company is now paying you for additional acreage. Is there a line in you lease that says something along the lines of, it it lessee’s intent to lease all of lessor interest in Section…?
I just read the letter from OCC to operators rega
Steve, The Arbuckle Lime formation, in most parts of Payne, is hard and brittle and highly fractured with small cavities and, in some areas, caves which create a reservoir for the disposal water. Seems like the water injected below the Arbuckle Lime into the Reagan Sand is a problem. The sand doesn’t hold the water, so it channels into the faults causing slip strike movement and earthquakes. The deepest is the Granite basement rocks which are formed by crystallization of magma below the earth’s crust, so it makes sense that injecting into the deep Granite would cause problems with earth movements. So, our Arbuckle injection wells should be alright, but the injection wells in the Reagan Sandstone or Granite will have to be plugged back.
Once again you’ve got the latest info. How do we find out if our wells are in the Arbuckle, Reagan Sandstone or Granite? Thanks Martha
I’ll take a look at the completion reports first and the email/call AEP since they have to be in compliance with the OCC orders in a couple weeks. I have a layman’s question: once a well is producing, would they be still using the waste water injection well they created for that producing well (assuming they aren’t drilling more O&G wells nearby).
They are being so cautious & stepping up regulations yet every day you see more completion reports & requests for permits to drill, it’s confusing
Thanks goodness we have you and others to help us try to figure it out, bless you
Steve, The salt water disposal wells (SWD) must have a completion report filed (1002A) with The OCC. Formation, like the Arbuckle, is listed on second page. Here’s an example: http://imaging.occeweb.com/OG/Well%20Records/1DD0E112.pdf
A Karst is a underground system underlain by limestone that has features like cavities and caves. The Arbuckle Lime is part of a karst system’s cavities and caves that can be filled with our well’s waste water. Currently, the USGS is making a new US karst map, but here’s the old map showing the karst system that is under Payne Co. Blue shading indicates karst. Of interest, notice that karst systems are what make the east side of the US more humid than the west side.
http://geology.er.usgs.gov/egpsc/graphics/06_karst_studies_weary.jpg
It makes sense that oceans & lakes would affect humidity but I would never have guessed the underground system would have anything to do with it. It’s hard to tell from the map but it looks like a pretty large swatch runs thru Payne.
Steve, If they don’t use the salt water for water flooding enhanced oil recovery (EOR), pipelines can carry the salt water to designated disposal wells. However, if they plan on using water flooding EOR, they will have to drill hundreds of vertical SWD’s or drill horizontal SWD’s with laterals at least 500 ft. Our area needs some type of EOR and water is readily available and they should be able to tell the Arbuckle SWD’s rates of disposal, injection pressures to determine if they need to drill verticals or horizontals. So, I’m just guessing that if your well is using an Arbuckle disposal well, it will continue to do so and the SWD will be continuously volume and pressured monitored, then more SWD’s will be drilled as needed.
I checked the completion reports, the well (6-2mh) formation name is Mississipian and the SWD formation is Arbuckle. I’ll keep researching.Thanks again
I haven’t posted any articles for a while, because I was waiting for one that made sense and here it is. "Oil Supply and Demand: Early 2015 Review http://seekingalpha.com/article/3072366-global-oil-supply-and-deman…
HB 2177 concerns extended laterals. The O/G companies want to drill longer laterals which will greatly increase their cost savings per well (lateral). Basically, if you have a 75 ft oil and gas deposit, you have 75 ft of access to the oil and gas and running the longest lateral possible through this 75 ft of access increases production and reduces drilling costs. The longest lateral drilled from kickoff was over 15,000 ft, but most are still under 10,000 ft. Obviously, allowing extended laterals leads to the need to combine two 640 spacing units to form one 1280 acre drilling and spacing unit. Then, leasing and production percentages becomes an issue, so HB 2177 will greatly impact mineral owners. Extended laterals can not be stopped, so we have to watch where the laterals are being drilled and make sure our acreage has been leased and we get a fair share of the production. Know your laws on laterals! HB 2177 is to be known as the Extended Lateral Horizontal Well Development Act https://legiscan.com/OK/text/HB2177/id/1088237/Oklahoma-2015-HB2177…
May 2015 EIA Short-Term Energy Outlook
“EIA expects U.S. crude oil production to exceed 9.3 million b/d in the second quarter of 2015, then decline by 280,000 b/d through the first quarter of 2016. With forecast WTI crude oil prices rising to an average of $67/b in the second quarter of 2016, drilling activity is expected to increase again. Companies are expected to take advantage of lower costs for acreage leasing, drilling, and well-completion services, resulting in growing production beginning in the second quarter of 2016.”
Bob, It takes at least 3 months for the gross production reports to get to the Oklahoma Tax Commission and they can take another 3 months to post the info on their website. However, around the end of July, you can call the OTC at 405-521-3251 and ask for oil and gas gross production and they should tell you.