The Oklahoma Corporation Commission heard our pooling last Monday. About how long should it be before we see the "order" in the mail? Anyone have an idea?
It was for 10 - 8N - 21W, Beckham County. Really curious because I listened by phone and ... kinda made the land man and the oil company attorney a little mad ... Hopeful they won't take it out on us by holding the letter or ... losing it accidentally on purpose ...
Thanks!
They vary. If it went to a recommended status, it may be 3-5 weeks before the order is issued. If it did not go to recommended, it will depend on how many hearings are needed to resolve the issues. I’ve seen some take a year from the first application. But that is unusual.
Wow, Rick! I had no idea it could be that long. They have already started work on the location. So ... they could actually be in and out before we ever have a lease?
What is a recommended status?
If you make an election from a pooling order you won’t have an actual lease. Recommended is kind of like approved, but the order is not issued. I think our recent one was 5 weeks before the order was issued.
You can look it it up on the OCC website, but it is not easy to get their software to work.
It went recommended on 28 April
Okay. The language is a little new to me -- this was our first pooling, though we have leased many times. So thanks for explaining recommended ... So we wait for it to be issued. I get that. And I sort of understand not having an actual "lease" if we select from the pooling. We do hope another company contacts us, but we have 240a in the section so it's not terribly likely. Plus we are also the surface owner where they are building the location as we speak.
Rick, can you tell me this - Once they have the location built can they actually begin drilling BEFORE we have selected from the pooling? That does not make sense to me. And in fact, they have said they will be in and out in a matter of a few weeks - hopefully they find something and we have production. But either way ... if they can drill without our pooling selection or lease with another company ... Is it possible they can be finished and gone BEFORE we even have the signing bonus and pooling selection or lease? That blows my mind!
Rick Howell ... I was hoping to hear more from you about this ...
J Evans said:
Okay. The language is a little new to me -- this was our first pooling, though we have leased many times. So thanks for explaining recommended ... So we wait for it to be issued. I get that. And I sort of understand not having an actual "lease" if we select from the pooling. We do hope another company contacts us, but we have 240a in the section so it's not terribly likely. Plus we are also the surface owner where they are building the location as we speak.
Rick, can you tell me this - Once they have the location built can they actually begin drilling BEFORE we have selected from the pooling? That does not make sense to me. And in fact, they have said they will be in and out in a matter of a few weeks - hopefully they find something and we have production. But either way ... if they can drill without our pooling selection or lease with another company ... Is it possible they can be finished and gone BEFORE we even have the signing bonus and pooling selection or lease? That blows my mind!
Once they have the location built can they actually begin drilling BEFORE we have selected from the pooling?
Yes, but if you have 240 acres, I would be surprised that they would drill before knowing they had this interest locked up. 240/640 is a bunch.
Thanks, Tim. I am hopeful we will have the pooling order sooner rather than later.
Sorry, I’ve been out of town most of the weekend.
Like Mr. Dowd, I’m surprised they have left this big of a chuck of the acreage outstanding. I’m also surprised they negotiated the surface rights to allow them to build a pad on your property without leasing the mineral rights. Surely there is way more to this situation that I’m seeing here.
While it is not common, I have seen drilling start on a few wells before the pooling order was issued. In some cases before the application was filed.
The biggest draw for another company to approach you to lease it would be to participate in the well. You are listed in the pooling. So if the area is desirable, they should be knocking on your door.
Looking through their pooling orders the last year, they seem to be low bonus amounts and primarily top at 3/16RI. Although there are a few 1/5RI options out there.
I suppose there is more to the situation, Rick. How long do you have? haha
Your profile tells me you are in OKCity. Are you a landman? Affiliated with an oil company? If yes, which one?
I manage our immediate family assets which I own a part of. I also assist with the management of some of our extended family's and friends assets. These are primarily in Stephens and surrounding areas. More recently, I have started to "dabble" in other areas of the business but it is tough to do with limited time right now. Hopefully that will free up in the next year or two as retirement from my primary job is nearing.
Thanks for the reply, Rick. I appreciate the comments and advice I read on this site. I'm researching and learning as quickly as I can. The company we are working with currently has done little to gain our trust and much to bolster distrust, unfortunately. But our word is good. And we will move forward - with caution.
Hey Rick Howell -- I THNK I have FINALLY found the information about our pooling on the OCC website. I ended up looking at the OAP orders and case files under OCC Document Imaging -- Is that the right place? I enter my pooling number and then it shows me the 8 things that have taken place. I don't see where it says "recommended" but perhaps that is understood, not seen.
Anyway, if there is another avenue on the site for me to locate info, would you please walk me through the steps to find it? The OCC web site has to be the most difficult I've ever come across.
Thanks!
Jill
It is locate in the case processing web application database.
http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html
Getting it to run on your computer may be the most difficult part. It will make you the the Document imaging portion of OCC is easy. You can just wait for the Order to be published in Document imaging.
http://www.occeweb.com, industy, oil and gas, Databases is the path to get to the above link.
Thanks!
Are you running Windows 8 by chance? If so, I'm not aware of anyone that has been able to get it to run under Windows 8. Not natively, anyhow.
I was looking at the wrong thing before, Rick. And looks like you're right. I don't think that web application database will run on my Mac either. Oh well ... Guess I'll just watch the document imaging.
Thanks again!
Jill