I am looking for some guidance and possibly a referral to professional resources. I have interest in 28 18N 09W. Cimarex currently has the well. My mother’s attorney reached out saying someone from Chisholm called regarding negotiating drilling. My understanding is with the current well active we are held by production. If I understand correctly we are not yet in 640 acre spacing – so why would Chisholm be contacting and what would they want to negotiate? The well is an old well from 1974 and produces a small amount – from reading the board it seems there is very little we can do and are bound by original terms. I know Chisholm has been very active in 18N – 09W – but do they have 28 and if so would we not be bound by the terms of the original lease? I have plenty more questions – was hoping someone could give a good reference. Being out of state makes it more challenging.
In general, if you are held by production under an old lease, that remains in effect for the new horizontal well unless you had a depth clause (not likely in the 70’s).
Chisholm is very active in that area. They have recent or pending hearings at the OCC for Sections 2,4,6,10,11,15,16, 18, 19, 20, 21, 22, 23, 24, 29, 30, 33.
I see Wake Energy leasing in 28, but that may have been for any remaining acreage in 28 that was available. The well in the SW4 -Messinger No 1-28 stopped production in 2017. Weldon 1-28, Geis 1-28 and 3-28 are still online.
If you were in the SW4, then they may be contacting to lease. If your acreage is in the other spacings of the other wells, then you are held by your current lease.
The notice about drilling may have been a courtesy notification or trying to clarify her address to send notices. Does she have any surface rights or just mineral rights? If she has surface, then that might be relevant.
Keep asking questions.
Thank you so much. Yes it is the Meissinger. She has surface AND mineral. We are still receiving checks from Cimarex – is that due to the delay from out of the ground/sale/payment? If it is no longer producing are we no longer bound by the 1/8 terms from the 70’s? Are we able to lease with whomever we choose? Why would Cimarex not contact us about leasing if they closed the well?
If it was the Messinger well, then go back to your original lease and see what your shut in terms are listed in the lease. Some of them say a year, some say a year plus 90 days. When was her last payment and was it for royalties or did it have a shut in payment code? You need to get a release of lease signed if they have truly stopped. Then you can lease again. Cimarex may not be interested in leasing again, but you need to clarify your status with them first.
If she has surface, that may be an entirely different issue and Chisholm may want to put a pad on her land for a new drilling site. That is a separate surface lease and you want an attorney for that as they need to be carefully done to protect you as much as possible. Also can have a surface lease separately from a mineral lease.
I would like to send you a private email could you please reply privately so that I may ask some additional questions.