In general, (not an attorney here), the royalty owners that are currently being paid are protected by a very early hearing and do not have to file. However, if you having title issues for a division order and , then you might have to make a claim, so that you can continue getting things straight. There should be a phone number deep in the paperwork that you can call.
I called Linn yesterday and they told me I did not have to file since I was getting regular checks. You probably need a copy of your deed, your lease and a division order if you in the title problem zone.
If uncertain, contact the company directly and ask them.
Thank you for the conversation. We were discussing whether or not you should be getting paid for drilling in the deeper formations if you are part of the unit they drilled in; and how you would get paid when they lease the whole section. I did check with Marathon; I spoke to Randy and he explained that you only get paid for the deeper depths if your actual ownership in that section. Section 19 1S 4W is part of the Velma Tussy unit is from 3047ft to 3387ft in the Velma Sims Sand Unit, the depth only goes down to about 5200 ft. My actual handed down ownership is in Sec 14 1S 5W. This seems so weird since they have reached and are producing gas and oil at the 5200. Isnāt it the same gas coming from a common source that they are getting at 5200ft. as at 16,000 ft.? For some reason I was under the impression that in drilling a horizontal well in a section that the gas and oil company leases the whole section that you would get paid because the horizontal well will deplete all of the resources from that section and the section is within the unitization. Also arenāt horizontal wells suppose to have a short life span.
Another question just to clarify; when a unitization agreement is reached; the resources produced from all sources in that unit are suppose to be combined and then the royalty owners get paid the decimal amount of what their tract participation is of that unit? Sometimes it seems the data bases are confusing because they show many companies producing from the Velma Simms Sand Unit, the Velma Tussy Unit, and the Humphreys Sand Unit yet I only get a small check from Chevron. I cannot ever find who is the controller/collector that accounts for the total production of each unit that I am involved in. Can you explain a little more about how the resources are collected and accounted for from the total production from a unit?
Hope your weekend was nice! We finally got some decent weather here and could actually go outside for a walk!
Oh yes! and thank you Martha also, you have always been a big help with this 2 year journey on the steep learning curve of gas and oil production and royalty payments!
The Tussy, Humpherys and Sims are all separate sources of oil and gas, and they all separate from the Woodford formation which produces in the HK Doom. The units were formed so each of the formations could be waterflooded. Several sections (or parts of sections) were combined to optimize the placement of producing and injection wells; then tract participation factors were agreed on. If you look on your check stub I would be willing to bet that your ownership in each unit is different. Since the units contain more than one section your interest is less than if production was only from the section where your minerals are located.
The horizontal well will only produce oil and gas from the Woodford (no effect on the Tussy, Humpherys and Sims). The Woodford in your section has not been unitized; therefore, your ownership, if a Woodford well is drilled under your section, will be based on your percentage of minerals in your section unless a 1280 acre (two section) drilling unit is approved.
You are awesome! Thank you for again for your insight and knowledge. Your post really helped me understand how it is all working. Yes, you are correct about my ownership being different in each formation. The ownership becomes a little confusing to me because I see all of these new injection wells; there are 21 or 22 active injection wells in the Velma Tussy formation and 3 active injection wells in the Velma Sims Sand Unit; I understand that the injection wells are to force resources to one area for better production results. Where are these wells pushing the resources to? And how do you get paid for the injection wells?
Another question I have is about the deeper formation of the Woodford in Section 14 1S 5W. I noticed that all of my tracts have been plugged; I found the records data mining and some of these have been plugged since 1978 and some were plugged as recently as 2002 & 2011; In the beginning around 2014 when I started paying attention; it was a good thing for an oil company to plug all the resources in a section because it meant they were probably going to put in a horizontal well; Then I discovered that Texaco fracked back in 1996; and I thought well we are already fracked and that is it for my ownership. Do you think that they are getting ready to unitize the Woodford in section 14 1S 5W? I noticed that most of the other sections around section 14 1S 5W already have some of the big operators in them like Marathon and XTO and they are getting resources from the Woodford. Chevron should be doing the same I think. What are your thoughts on what is going on with all those injection wells and plugging?
Hope your having a great day! It is beautiful and 88 degrees here with a little cloud cover. Remember we have dry heat so 88 isnāt that bad if there is a little cloud cover or you can stand in the shade!
You do not get paid directly for injection wells; you just get paid for oil and gas production. But like you mentioned, the injection wells force more oil to the producing wells so they contribute to increased production throughout the unit. Units are formed so that owners who have injectors (in many cases they were producers before the unit was formed) on their property received revenue for the value contributed to the whole unit. Many factors (production to date, estimate of remaining reserves, amount of reservoir underlying acreage, etc.) are considered in calculating the tract participation factors when the unit is formed. In almost all cases the tract participation factors are determined before there are any injectors. All wells, both producers and injectors, are operated for the benefit of all unit owners based on their tract participation factor.
I understand about tract participation and being paid on what your individual tract contributes to the overall production within the unitization. How do they go about putting together each units total production? Where would I find the total production for each of my unitizations? There has to be an accurate record somewhere because they get taxed on the production, right? The Velma Sims Sand Unit, the Tussy Unit, and the Humphreys Unit are the ones of course that Iām interested in?
We received an offer to lease on section 18 2n 5w. Its not even close to the lease that just expired. They offered 1000 for an 1/8 750 for 3/16 and 450 for 1/5 for 3 years. Has anyone heard about any possible force pooling action on 18 or 19 2n 5w. There are a lot of leases in those sections expiring in December of this year.
I just received a check to extend my lease for Sec,16-2N-5W, so it was of course at the same rate. That sure helped, and gave me a glimmer of hope again.
Hello everyone! Iām sure your not online right now because your probably watching the OU game! I have a question about something that comes up when Iām looking in the well browse on occeweb; it shows in the headings it shows API, Operator#, Well Name, Well #, Well Type, Status, SEC, TWN, RNG, then M. I thought M stands for Meridian, but what exactly does that mean? All of my wells say M is Indian. Can anyone tell me what M and Indian mean on my wells?
Wow! the History of the territory out there is something else. My Great Grandmother on my Motherās side was part Cherokee and she was a Turner. I only met her once when I was about 5, I remember her clearly and she looked very native American and she was a quiet person. It appears that most of Stephens County is on the Chickasaw reservation; being Native land; does that affect who should be paying you for that production?
Anyway, I have some other questions about Section 13 1S 5W. In 03/2012 is the date of beginning tax on it. PUN 137-126259-0-3599 for all of Section 13 1S 5W; Velma Reclaim Plant is the name. Can someone tell me what formations they are producing the reclaimed oil out of in that section? The information says Stephens County for the formation. In that section according to the PUN search for the section; everything I have an interest in is plugged in that section and the Velma Reclaim Plant is the only active production and tax record for that section. They have been producing from there since 2012. Any information on this reclaim plant would be helpful. Maybe it is called something else by everyone; because I cannot find anything about that reclaim plant on the internet.
Hope everyoneās weekend was nice! Have a Happy Monday!
If there are two wells showing on our mineral rights that say under meridian āIndianā is this something that we could expect royalties from or not?.
Indian Meridian is the ācenter lineā that the most of Oklahoma townships are measured off of. Cimarron is up in the panhandle. See attached link. The S-T-R in Stephens county are measured against the Indian Meridian.
Max, if the wells are perforated in your section township and range within the spacing of the well and lying under your description determines whether or not you get paid. If you have acreage in the NW4 of the NW4, but the well is in the SE4 of the SE4 and spaced at 80 acres, then you would not be paid. But if there was a horizontal well that had perforations in the section and it was spaced at 640 acres, then you would most likely would be eligible.
Here is some info. As far as the plant is concerned the oil is not produced for the a formation rather it is āreclaimedā from waste.
"Reclaimer" or āreclamation plantā includes any person licensed by the Oklahoma Tax Commission pursuant to 68 O.S.Ā§1015.1 who reclaims or salvages or in any way removes or extracts oil from waste products associated with the production, storage, or transportation of oil including, but not limited to BS&W, tank bottoms, pit and waste oil, and/or waste oil residue.
Seems like oilfield work and traffic has began to pick up around here (Lindsay). Heard itās really picked up around the STACK play up north of here the most. Oil and Gas prices easing up. All good signs to me!
Linda- CLR check was up quite a bit this month. Almost double last months. Anyone hear anything on the section 6 02n 04w and 07 02n 04w Sympson wells? ( most drilled from section 18 02n 04w ) I keep looking for a completion rpt- but non yet.
Yelp, our CLR check was nearly doubled too. Must be due to the Nat. gas prices going up because our well (the Claudine) is mostly gas. Thankful for whatever we can get!