Barbara - Newfield is planning to drill that well in the Winter/Spring of 2016. They stated in their last earnings call that they would like to HBP all of their acreage in the STACK by the end of 2016 and to accomplish that they would be adding rigs…presumably that holds true for the SCOOP as well since economics are just as good and the leases are more expensive. As M Barnes said that might change, but I seriously doubt it as well results have been strong in that township and they have lease expirations to deal with.
M Barnes and Huey Paxton - thank you so much! Wow - what great good news! My ignorance is showing, but I have just one more question. What does HBP stand for? This is all such a foreign language for newbies like me. I will bookmark the OCC site and keep my eye on it. Again, thanks so much!
According to the Oklahoman this morning they are right now building a new oil processing plant in the SCOOP. Didn’t say where but said they had already started—wheeeooo, so glad it’s not in my back yard even though I’m glad to hear of it. It’s being built by the same bunch that is putting in the pipeline in the SCOOP according to my husband.
I told you M Barnes could give you the full answer…yes, pass the syrup!!! lol
I believe the new plant will be located off of Highway 76 in Foster, OK.
Has anyone heard anything about the Cheasapeake settlement can not believe there is nothing about this anywhere thx hate to keep asking this but its our money
Thank you David F; M Barnes and Miss Rigtracker. Now who is responsible for paying you for the production in the different unitizations that you have interest in? If the organization that is holding you by production is the responsible one. Then I would have to say that I’m definately owed $$ from them because production has steadily increased since early 2000’s and my check has not. Who is collecting the money from the production and not giving it to me?
Court awarded most of Chesapeake settlement to plaintiff attorneys. Remainder of settlement goes to all royalty owners. You should feel lucky if you get $1 after it is distributed.
K Dawn, the company that has been assigned operatorship to the unit is supposed to pay you. Operatorship can change. Do the new (if applicable) owner have your information? Do they have your correct address? Has ownership passed down in your family and they may not know about it? Production is assigned as a percentage of each “tract” in the unit. Over time, the unit can get smaller and certain tracts are dismissed from the unit. Check and see where yours are located based upon the original unit out line maps. Ones on the edges and downdip tend to get cut out over time. If you think you are still part of the unit, contact the royalty owners division of the company and start a discussion.
One operator may hold different units (formations) in an area. (my pancake illustration) Each one has its own rules. Production may be going up in one formation and down within another. Gather all you backup information together and begin your detective work. Royalty owners do have to be diligent.
Hope everyone’s day is going awesome and I sure do appreciate our coversation and the great information/education! I’m going to get out my owner papers and review the information. I know some of the units have the same sections and different acreage. I’ll get back to the forum after I do that. Thank you again.
HBP has nothing to do with a “minimal amount”; can be minimal to outstanding. It just means that the lease is held by a producing well that is making a profit. It produces enough to pay for the operating costs such as electricity, maintenance, etc. They have to pay royalty.
If you are HBP, then any new wells will be paid just like your old wells. They add them to your pay stub. If you were lucky and had a depth clause and were able to re-lease a different zone at a different royalty, then that will be reflected in the pay stub (check your DO). If you are getting paid for stand-alone wells, then it is pretty straight-forward and your production will be based upon the spacing of that well. If you are in a “unitization”, then your payments will be based upon your acreage % of the whole unit which can be a really odd size. I have some tracts that have complex units at five different zones, so each unit is calculated separately. The unit holds the acreage and if they drill a new well in Zone 1, you get paid on that well according to that unit agreement (even if the well is two miles away). Then if they drill a new productive well in Zone 2, you get paid on that well according to its agreements.
If you need to visualize, think of a stack of pancakes. Square ones if you are spaced on single wells. (40 ac, 80 ac, 320, 640, etc.) A straw going into the pancakes can only drain according to the allowance and your percentage of that size pancake.
For units, the pancakes are much larger and irregularly shaped and the stack is off kilter. Not all of the pancakes line up, so a straw going through the stack may not hit all pancakes, and usually can only pull out of one of those zones. So you get paid differently for the blueberry one than the chocolate chip one due to the unit agreement. Anyone hungry now?
How do I go about asking the organization that I’m held by production by to show me where I’m getting paid my decimals for the combined production of the 4 different unitizations. that I have ownership in. My monthly statement doesn’t show my decimals for all the production from the wells within the unitizations; It couldn’t be because the statement is only 1/2 a page long and only shows my tracts; and there way more wells producing in those areas than 1/2 a page.
Just got home from a vacation and received a notice for section 06 02n 04w Stephens for 9 additional wells and increased density. Also an emergency order for same. I’m shocked but what great news. CD 201504487.
Thats great Jen, maybe prices will be up by this time next year.
The pancake analogy is brilliant, M Barnes; thank you!
On unitizations, they don’t always list all the wells; they roll it up to the unit level. They combine all the wells that contribute to the unit, then divvy up the royalties by the percentages that belong to each tract. You probably have to go back to the original unitization plans, find out where your tracts are located for each unit and what your percentage assignment it. You may have one parcel of land (or more) that lies in four separate units since they produce from different zone. Depending upon the size of the unit, the same acre parcel may end up in the four units having completely different royalty percentages since the units are different sizes. Go back to the pancake analogy. If you have 10 acres in a 1265 acre unit, your percentage will be quite different than the same 10 acres in a 5000 acre unit. If you don’t have copies of your unit documents from a long time back, many are on the OCC website. Sometimes the same 10 acres can be put in different size “tract” for each unit. It can get quite complicated!!
If you are in the units I think you are, it is a beast.
CR has applied for Increased Density in 7-2N/4W, 9 additional wells.
Another shocker Jen?
Hutch- holy cow! I didn’t know about sec 7 2n 4w. This IS another shocker. Sec 6 and 7 are my largest nma. How did y’all find out sec 7? I haven’t seen it on the dockets. I hope o and g prices will stabilize soon.
Realizing that anything can happen, I’m only slightly jumping for joy! Thanks for the good news! I remember Martha mentioning she thought there could be multiples in these sections. I always thought there was a fault line in sec 6.
Jen, application just made yesterday, not on the docket yet.