GASTAR has taken on a considerable revitalization of 24,000 acres of the West Edmond Hunton Lime Unit in Logan,Oklahoma,Canadian and Kingfisher counties for $187.5 Million. They have already drilled and completed three or four wells and are in the process off of development of 206 wells in the area.The WEHLU currently produces 1,200 bbls of oil and 2.7M CF of gas daily which will increase considerably as the Gastar activity increasesThe current Mineral Rights owners only get 1/8 of the current production and no bonus rather the 3 /8 to 1/4 of the production and the approximately $1,000 an acre bonus that is currently about the standard.
It has been this way for over 65 years since WEHLU approval. This means that the WEHLU organization and oil companies get the vast majority of the production while the mineral rights owner who actually owns the oil and gas, gets very little. The justification has been that every mineral rights owner get a small amount spread over the entire field. Unfortunately the mineral rights owners have been unable to dissolve or withdraw from the WEHLU. The oil companies have been able to hold on to the leases as a unit even though many or most of the old wells were depleted or were shut down. The shear audacity of the OCC and the oil company have allowed and encouraged this, for a very unreasonable amount of time. This is a totally unfair if not illegal situation.
The WEHLU mineral rights owners need to join in and force the OCC and the Oil companies to rectify this situation now, before they loose the increases that they are due. Lets get together to do it!. Please email me with any ideas or good O&G defense lawyers you may know. I will take on organizing it. Jack at equity25@aol.com.