We have minerals in S1 8S3E Love County where The Cowman 1-12H1X36 is permitted to drill. In checking the OCC forms no drilling has begun. We leased for 3 years to R.D.Wiliams in Dec. 2018. To this point no drilling has taken place. I was recently sent several copies of court hearings on behalf of Trailhead Exp., the most recent were an offer to participate or lease in Sept. 2022, which we did not sign or return. In Nov. 2022 I received a notice of pooling signed by the judge 11/09/2022, where it was ordered non-participants be paid $400 per nma and receive 1/8 royalty. This was to be paid within 35 days. After not receiving payment, I contacted Trailhead and was told I needed to send a W-9, which I signed and emailed on Feb. 21, 2023. Over 30 days have elapsed and still nothing and I have signed no papers. Today I received an offer to lease from ACOMA Energy. Their lease offer is for $500 per nma and 18.75% Royalty, considerably more. Can I accept this lease since I have not agreed to any other lease with Trailhead nor received any payment from Trailhead. Thank you.
No; if the operator/applicant fails to pay the bonus, you are still pooled. Now, you can lease as to all formations not covered in the pooling order.
You can sign a lease with anyone that will pay you. That doesnât mean the lessee has a valid lease. Make sure you scratch the warranty clause.
How am I bound and obligated if they fail to deliver on the order to pay a bonus? In any other business that would be considered a breach of contract would it not? What recourse does that leave the mineral owner if the operator chooses not to pay the bonus?
You ask the question on this website seeking an answer. I give you the answer according to case law in Oklahoma. Then you start arguing with the answer. So, in actuality, you werenât asking a question. You wanted someone to agree with you. If you feel your position is correct, then see if OCAMA will lease you in the pooled formations. The recourse is to go to the OCC and ask for payment and a penalty.
Mr. Dowd ⌠please accept my apologies for giving the impression I was arguing w you. I was/am merely incredulous that the correct answer is that I am locked in after having entered into no agreement and the operator so far ignoring the order to make fair payment which would, in my mind, complete and seal the transaction. It seems pooling is somewhat akin to imminent domain and the mineral owner is left with no remedy. Thank you for your time and giving an answer that hopefully might be beneficial to others in similar situations.
The Cowman is permitted in 2E, not 3E. The pooling order for 2022-003855 lists the Mississippian and the Woodford at 640 acres, so you are held for those zones by the pooling. Drilling is to commence one year from the date of the order which was Nov. 17, 2022.
Send a certified letter, return receipt to Trailhead requesting payment for pooling. You might want to put another W-9 in with the letter. It can take months to get paid. Not unusual-unfortunately. As Tim said, you are still pooled and held for those two horizons for a year from Nov. 17, 2022.
Make sure that your name and address are properly filed in the Love County Courthouse.
Thank you, as always.
Probably worth a telephone call. There might be an issue with the title.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
no problem. In re-reading my response, I was a little harsh. I apologize to you.
M_Barnes another question re: the length of time we are held to the âPooling Orderâ. A part of the judges order following the order to pay any bonuses due within 35 days of the receipt of the notice ⌠âAny such proposal shall expire 180 days after the date thereof if operations for the drilling of the well proposed thereby have not commenced, and all parties shall be in the same position as if no well had been proposed.â Does this mean if the well has not spud by 180 days (6 most), we are released from this order and free to lease to another company? Thank you
Richard, thank you for your response and suggestion. Would you recommend a call to the Love County Clerk or Trailhead? I have tried Trailhead and they do not take telephone calls. All inquiries are directed through email.
You should call the company and inquire about a title issue. The Love County Clerkâs office doesnât get involved with determining title ownership.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
If the well is not spud in the time frame of the Pooling Order or the Order is not extended, then you are free to lease or get pooled again.
Again, thanks to all who respond as this is such valuable information to many. One last question on this. Another company is leasing in this same area and says they are planning wells. If you are leased with Company A and Company B comes into the same area and drills and both have producing wells, are you only paid by the company to which you are leased or both?
You are paid by the company that is the operator of the unit where your minerals are located.
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