How do I access you private message Cam?
Try clicking on the little circle in the top right hand corner of the screen, then you will see a few different tabs and one of them says messages.
Martha,
What is the address for the ok tax site you are speaking about in this post? I also am trying to get to the bottom of how in the world this Spangler well operated by Spess and which was drilled in1978 is still holding these old leases and preventing new drilling by Highmark. I have spoken with several other mineral owners and non of them have received a royalty check in years.
I was using the occpermit.com well browse database to look up production numbers and didnât see any production listed for all the years I searched for. What is the producing in paying quantities test for Oklahoma for a well? Does anyone know? Surely this Spangler well doesnât meet the requirements of producing in paying quantities. I donât see how this well can make a sufficient profit that any prudent operator would continue to operate it.
I appreciate any input.
Cam
I have no idea why I received this email below. I have not posted on this site.
Donald W. Unruh
Can, You can go to Oklahoma Tax Commission site, click on all taxes tab, go to gross production then do a PUN search. You can also request a history of Gross Production. Hope this helps.
Paul Edsall
OTC lists Spess as the operator. I just checked that Gross Production site and they do not show any production for the last 12 months.
|PUN #: 011-054251-0-0000|Legal Description: -AL-18-16N-13W|
|Lease Name: SPANGLER #1|API: |
|Well Name/Number: |County Name: Blaine|
|Well Classification: Unknown|County Percent: |
|Tract #: |Total Lease Acreage: |
|Shut-in Date: |Active Date: 07/01/1980|
|Plugged Date: |Active Product code: 1,5|
I have another source that lists sales of 184 bbls in Feb 2017, 177 bbls in April 2017, 181 bbls in Sept 2017, 186 bbls in Nov 2017. You need to check your original Division Order. Sometimes they have a $100 minimum or once a year to cut a check. I almost always change mine to $25 min. As far as âeconomicâ, that is aggravating to most mineral owners. The operator just has to make a profit. The cost of the electricity to run the pumps, the pro-rated salary of the pumper to check on it and the cost to come pick the oil up out of the tank battery.
Sounds about right. Our very old vertical wells production is a drop in the bucket but evidently enough to call them profitable. The several lease holders we had would pay monthly if the royalty was more than $100, otherwise they pay quarterly or even less frequently if the royalty is very low.
Thank you for this information. I appreciate it.
John Lenoir is a lawyer who also has mineral interest in 18-16n-13w contacted Spess and was told that they were producing 1bbl a day and that Highmark was trying to âtop leaseâ the weâll and that they (Spess) were taking Highmark to court. My question is, Why would anyone go to court to save a 1bbl a day well? Are they (Spess) artificially keeping production to a trickle? Why?
rickde: What Spess is holding (old leases most likely on 1/8th) are more valuable than the oil in the formation they are producing. The Spangler is barely able to produce as its reservoir is depleted. Spess hopes to convince someone that their OGLâs are still valid. Highmark is trying to convince someone that their new OGLâs are good and Spessâs are not.
My experience tells me that Highmark didnât pay very much for these âtop leasesâ as they knew when they took them that there would be a legal fight.
Todd M. Baker
Exactly.
Itâs the lease that is valuable to them, not if they are making money or not off the well. What they originally wanted was for Highmark to buy the leasehold from them and drill a horizontal well. Spess would assign the lease over to Highmark and Spess would be able to capture a large override during the assignment since they only have an 1/8th lease. Instead Highmark went out and took leases thinking they could prob get Spess to release the lease over threat of a producing in paying quantities lawsuit. Now Spess is taking Highmark to court over taking the top leases.
I am speculating on some of the above, but I am pretty sure it that was along the lines of what happened.
Cam
2 Likes
Thank you, Todd.
Thanks, Cam.
1 Like
Thanks Cam. Now we just have to figure out how to break the choke-hold that Spess has on these minerals.
Highmark is doing something in the area, just received this completion report: Highmark Energy Operating Llc Mississippian(11113): Oil 166 Gas 2989 Water 1278 Flow 22 16N 13W Dunn 1r-15h, September 09, 2017 HH, GAS, TD: 16450 ft Lat: 35.85495, Long: -98.56909 API: 35011238060001
Here is the completion report for Dunn 1R-15H, 24 Hour test
Gas||MISSâAN (359MSSP)||11,430ââ16,331â||166 BBLs Oil, 2,989 MCF Gas, 1,278 BBLs Water|
Anybody know who the operator for this well is. I take it that Spess is the lease holder. I think it might be Sunoco.
Cam, thanks for the info on what Spess and Highmark may have in mind in this intrigue. What is does it mean, âa producing in paying quantities lawsuitâ? Our cousin, John LeNoir contacted Sunoco who he found out was the producer of the Sparling well and told them he had never been contacted or had received any royalty notice on that well. They said he must fill out an affidavit of heirship and ownership and other paperwork proving he is the heir to his motherâs and sisterâs estates regarding S18-16n-13w before they could revise the Division Order to pay suspended royalties. Does this seem on the level and do you know anything about Sunoco? Thanks for any info you might offer.
Spess Oil Co is the operator (#02057). Sunoco is merely the purchaser of the oil contracted by Spell.
Interestingly enough, a few years ago when all the top-leasing was going on in the section, I was approached to sign a top lease. The company doing so indicated that all the equipment had been removed from the well site of the Spess well. They were assuming the well was abandoned. Not sure what happened, but I occasionally receive a check from Sunoco on this lease for the dribble of oil they sell.
Sunoco is a reputable oil amd gas company My dad worked for them for over 40 years.