March - ocapl

VOLUME 13, ISSUE 3
MARCH 2015
President’s Letter
Points of Interest
NewMembers
3
Questions from the
4
field Industry Affairs 5-7
Mar. Meeting Pics
8,9
Legislative Affairs
10-12
Field Landman Seminar 13-16
Dear Members,
The weather in March has been a welcomed
change from what we dealt with in late
February and Spring Break is here! If you
are traveling with your family and friends,
I hope you have a safe, fun trip. I’m not
going anywhere, but do plan on spending
some time with my grandchildren. Maybe
try to play golf with the boys, and the girls
just love to come to Wewoka with me. They
have their own office and it’s cute to see them
play Landman. They pretend to negotiate
leases, make appointments, and play in our
AWESOME file room. I’ll have them filing
my Deeds and Division Orders before long! professional opinion because costs increase
rapidly when you’re under the gun. Dennis
has an open door policy and can be reached
by email at: Dennis.McAffee@qpsepc.com.
Janet Stewart with the other OCC (Oklahoma
Conservation Commission) spoke to our
members at the Petroleum Club about
Flood Control Easements. She explained
the problems their office encounters
because their easements are very old (circa
1920s and 1930s) and a lot of the time they
are overlooked or misunderstood, which
results in encroachment and trespassing
issues. Oklahoma leads the nation in the
number of small watershed upstream flood
control dams with just over 2,100. In 1948,
Oklahoma constructed the first flood control
dam in the nation, the Cloud Creek Dam
Number 1 near Cordell, Oklahoma. You can
peruse their page on Watershed Upstream
Flood Control Programs at http://www.
ok.gov/conservation/Agency_Divisions/
Conservation_Programs_Division/Flood_
Control_Programs/. Monday evening we will be honored to
have Mr. John Richels, CEO of Devon as
the featured speaker. Instead of a sit down
dinner, we will serve appetizers and seating
will be theatre style. Teresa will send out
reminders and we will need you to RSVP for
both events on April 6th. Dennis McAfee with QPS Engineering of
Houston came to Oklahoma City for our
Monday evening meeting and spoke about
the Environmental Issues we face in our
industry. Funny, both Janet and Dennis
delivered the same message: “The earlier
you recognize and address the issue, the
smoother your project will run.” Don’t wait
until you are in a pinch before you ask for a
Page 1
We only have one more monthly meeting on
April 6th before the summer break. Lunch
at the Petroleum Club will feature George
Snell and Tim Dowd who are joining forces
to speak on: Oklahoma and Texas Title – The
Differences. We are excited to have these
two as our guest speakers; it’s sure to be an
entertaining and informative presentation. We recently found out our website will selfdestruct on April 21st. Not to worry ~ we
have secured another webhost and they are
working feverishly to have us up and running
before then. In the meantime please be
patient with us. Rebuilding the website was
not something we had budgeted or planned
for in 2015, but we are determined to get it
done and not disrupt service to our members. Thank you and hope to see everyone on April
6th. Amy
Jo Love
2015 OCAPL President
April 6th
Educational Luncheon – SPEAKERS– George Snell, Steptoe-Johnson PLLC
& Tim Dowd, Elias, Books, Brown & Nelson TOPIC – “OK & TX Titles – The
Differences”
Monday Night Meeting – SPEAKER – John Richels, CEO Devon Energy
Corporation
April 9th
April 21st
May 2nd
Field Landman Seminar – Willow Creek Country Club
HAPL Webcast - Chesapeake and Devon Locations
Fishing Tournament – Lake Texhoma
Community Affairs Volunteer Event with Skyline Urban Ministries
May 16th
May 18th
July 23rd
August 28th
Sept. 7th
Community Affairs Volunteer Event with Bella Foundation
Golf Tournament - Oak Tree and Gaillardia Country Clubs
YPE Energy Forum
Sporting Clays Tournament – Silverleaf Shotgun Sports
Educational Luncheon – SPEAKER - TBA
Monday Night Meeting – SOCIAL MEETING – NO SPEAKER
Sept. 25-26th
Oct. 5th
Weekend Take Off
Educational Luncheon – SPEAKER – TBA
Monday Night Meeting - SPEAKER – Weldon Watson, Chair of the Energy
& Natural Resources Committee, OK House of Rep TOPIC – “Current
Legislative Issues affecting our Industry”
Nov. 2nd
Educational Luncheon – SPEAKER – TBA
Monday Night Meeting – AWARDS NIGHT – Landman of the Year
and William Majors Distinguished Service Awards (WHO WILL YOU
NOMINATE THIS YEAR?!)
Dec. 7th
CHRISTMAS PARTY
Page 2
AAPL MEMBER *
*Hankins, Regan
Chesapeake Energy Corporation regan.hankins@chk.com
*Baker, Katie Chesapeake Energy Corporation katie.baker@chk.com
*Smith, Harrison
Samson Resources Company
HESMITH@SAMSON.COM
*Marchbanks, Brett Penterra Services
MarchbanksLand@gmail.com
Kirk, Travis Keystone Gas Corporation travis.kirk@hotmail.com
Wallace, Andrew Avery, Kurtz & Valerio, PC awallace@akvlaw.com
Nesbitt, Patrick
Avery, Kurtz & Valerio, PC patnesbitt@me.com
*Reagan, Reid
Devon Energy Corporation reid.reagan@dvn.com
*Nygaard, Peter
Meadows Oil & Gas Corp. peternygaard@meadowsoil.net
*Barry, Matthew
Blue Star Land Service, LLC
mbarry@bluestarlandservices.com
Meadows, Melinda Meadows Oil & Gas Corp. melinda@meadowsoil.net
*Wodraska, Brandon
Meadows Oil & Gas Corp. bwodraska@gmail.com
*Huffman, Robert
Haggard Land Company
Bobbyhuffman3@gmail.com
*Glenn, Christy
Linn Energy LLC
cglenn@linnenergy.com
Lowry, P. Brett
Lowry Land Co., Inc.
pblowry@lowryland.com
*Williams, Robbie Energy Land Consultants, Inc.
rlwilliams1982@gmail.com
*Foutch, Jarrod
Meadows Oil & Gas Corp. jfoutch@meadowsoil.net
*McQuesten, Kelli Devon Energy Corporation kelli.mcquesten@gmail.com
Friesen, Jeremy
Bivins Land Service, LLC
friesenjj@gmail.com
*Douglas, Asa
The Douglas Group LLC
asadouglas@cox.net
*Payton, Chase
Continental Resources, Inc.
chase.payton@clr.com
*Voight, Randy
Devon Energy Corporation randy.voight@dvn.com
*Kuykendall, Grady Eagle Land Services gradykuykendall@gmail.com
*Schladt, Robert
Penterra Services
reilly.schladt@gmail.com
Roueche, Court
Viking Minerals
court@viking-minerals.com
Mayer, Jeffrey
Triple Crown Energy
jmayer@triplecrownenergy.com
*Olson, Deb Diversified Energies, Inc.
debolson11@msn.com
*Ray, Chris
ValPoint Operating, LLC
chris@valpointoperating.com
Viking Minerals
ransome@viking-minerals.com
*Oliver, Ransome
Page 3
Questions from the Field
real or personal property located in the State of
Oklahoma, not inventoried and appraised in this
Estate, and not herein referred to, then all right,
title and interest in and to said property should
be distributed in accordance and pursuant to the
terms of the Will, on file herein, to the following:
Questions
fromC.the
Field
Timothy
Dowd
TimothyBROWN
C. Dowd
ELIAS BOOKS
& NELSON
ELIAS BOOKS BROWN & NELSON
Editor’s Note: Each month this column will be devoted to answering oil and gas title
Editor’s
Note: Each month this column will be dequestions.
voted to answering oil and gas title questions.
Distributee Proportionate Share
estate proceeding of an owner who died owing
Wife Child one
Child two
Child three
1/2
1/6
1/6
1/6
Q:
I examined an Oil and Gas Lease dated July 1, 1984, covering tracts in Sections 1,
2, 3, 4, 5 and 6. I have also examined copies of Oklahoma Corporation Commission
Completion Reports (Form 1002) for the Smith 1-1 Well drilled in the SE/4 and the Smith
Q:
I the
examined
a Final
Order in a probate/
No. 2 Well
located in
NE/4 of Section
1.
During the primary term of the lease, two wells were drilled on the lands in Section 1.
The first a
well,
which is denoted
as theAll
Smith
Well, was
commenced
on October 13,
mineral
interest.
his1-1estate
was
distributed
1984 and drilled in the S/2 SE/4 (which is not part of the leased tract). The Smith 1-1 was
to
his
wife
and
three
children.
However,
the
sec-unit for
completed in a formation, which was established as a 160-acre drilling and spacing
the SE/4.tion that I am working on is not referenced in the
Order.
Does
the
estate
need
towas
bedrilled
reopened
A second
well,
denoted
as the
Smith No.
2 Well,
in the NE/4to
of Section 1
(part of the leased tract) on April 24, 1986, and completed in the Hartshorne formation. The
include
this
omitted
tract?
Is
this
Order
adequate
Hartshorne formation has not been established as a drilling and spacing unit for the NE/4 of
Section 1.
to pass title to the wife and three kids? A.W.
Does the drilling of the Smith 1-1 Well in a drilling and spacing unit of 160-acres
cause the lease to terminate outside the SE/4? What is the impact of the Smith No. 2 Well
A:
In a Final Decree or Final Order, there is,
Well on the extension of the Smith 1-1 lease?
typically, a residuary clause. The clause, typically,
recites
close
following:
Title
52 O.S.something
87.1(b) recites: "In
case to
of athe
spacing
unit of one hundred and sixty
A:
(160) acres or more, no oil and/or gas leasehold interest outside the spacing unit involved
may be held by production from the spacing unit not more than ninety (90) days beyond
expirationThe
of theCourt
primary further
term of the finds
lease." (This
frequently described
andstatute
IT ISisHEREBY
OR- as the
“Statutory Pugh Clause”).
DERED, ADJUDGED AND DECREED that if
Unfortunately,
is noseized
case lawand
and only
one law review
that construes
decedentthere
died
possessed
of article
any other
this statute and its impact on wells drilled. The only guidance is the wording of the statute.
In this situation the oil and gas lease would not have been extended solely by virtue of
production from the spacing unit and the well drilled in the SE/4, but the lease was
Headquartered in Edmond, Oklahoma
Experience in
Mid-Continent, Utica, Permian, Marcellus,
Rocky Mountain, Eagle Ford and Bakken Regions
Over 35 years of experience
in providing efcient and
skilled land services.
For more information Contact
Robert Rice at 405.513.5581
Therefore, under the language in the residuary clause in the Order, all property, even the
omitted property, is passed to the heirs.
In addition thereto, Oklahoma Statute
Title 58 §692.1 recites that in the event any property is not specifically described in the inventory
or in the Final Decree or in any other part of the
proceedings, if the Decree names the heirs, or devisees, the title of said omitted property is established in the heirs and devisees in the proportion
or parts named.
However, there is still the issue that there
is no constructive notice of the Decree in the
County Clerk’s records. In the event that the
County Clerk’s records do not show that the Final
Decree has been recorded against the subject
tract, then an affidavit should be executed showing a) that it is being executed under 16 O.S. §83;
b) the decedent died owning a record interest in
the pertinent tract (legal description); c) a Final
Decree in the estate of the decedent is attached
to the affidavit; and d) a Jurat and acknowledgement should both be on the form. The completed
and notarized affidavit should be recorded in
the appropriate county to be indexed against the
pertinent tract and section.
Note: If you have any title questions you want
answered, email your questions to ocapl@coxinet.net.
Page 4
A Bottom For U.S. Natural Gas Producers Is
In Sight
351309 V5 1_Hicks_Ad_3.5x5 5/7/13 9:41 AM Page 1
TR
UC
TI
ON
by 47.6%
,17(5(67(',1
EDMOND, OK
• Canadian
Natural Resources (CNQ),
$29.16, down by 20.5%
NEW
385&+$6,1*
3URGXFLQJ1RQ3URGXFLQJ
There
are three major reasons for the decline in U.S. natural
0LQHUDOV255,5R\DOW\/HDVHV
gas prices over the last 12 months, all of which have resulted
in higher-than-expected supply:
1.
Higher-than-expected production from the Marcellus
shale, which makes up more than 20% of U.S. natural gas
,1 Marcellus shale is unlike any other shale (gas
production. The
or2NODKRPD7H[DV.DQVDV
oil) in terms of productivity. Defying expectations, some of
the wells drilled in the Marcellus shale actually experienced
3OHDVH&RQWDFW
production
increases six months after production began;
2 SUITES
for gains
2.
Technological
innovation hasid
driven
eAlefficiency
4,000 sq. ft. &
*LE.QLJKW
2,000 sq. ft.
as each
rig is able to drill an increasing number
of wells, e.g.
9LOODJH&HQWHU&LUFOH
gy
er
en
or
three years ago, it took about 23 days Oakview
to drill
well in the
Professionala
Pointe
1 SUITE
I-35 & E. Memorial Rd.
/DV9HJDV19
6,000 sq. ft.
Marcellus shale; today, it takes only about
turnpikes
todays;
Access14
3.
An
increase
in
‘associated
gas’
production
as
shale
For
More
Information
or
For
a
Showing
Properties & Inv. LLC at 405.478.3836
JLENQLJKW#JPDLOFRP
oil production
increased, i.e. natural gasCallisHicksproduced
as a byproduct of shale oil production. The shale boom over the last
Pageincreasing
0
several years has resulted in an
amount of natural
gas produced that essentially has a zero cost of production.
We believe that much of the conditions for low natural gas
prices is set to change in the near future, however, and that a
bottom in both natural gas prices and stock prices of natural
gas producers is in sight.
First, the number of natural gas drilling rigs has experienced
a historic decline, and is set to drop further unless natural
gas prices recover. The U.S. natural gas rig count peaked at
1,606 for the week ending September 12, 2008. Since then, it
has declined by 83% to just 268 rigs as of last Friday, March
6, 2016.
Of course, increased drilling productivity means each rig
could drill more wells today over any given time period
relative to three or six years ago. However, we believe this
unprecedented decline in the U.S. natural gas rig count will
overwhelm any productivity gains–meaning that the overall
number of natural gas wells drilled (and completed) this year
will be lower than expected, unless prices recover.
CO
NS
Henry To , Forbes.com, 3/10/2015 @ 1:41 am
Crude oil is not the only energy commodity that has taken a
beating over the last 12 months. U.S. spot natural gas prices,
priced at the Henry Hub in Louisiana, closed Monday at $2.72
per million British Thermal Units. U.S. spot natural gas is
down by $2.05/MMBtu, or 43%, over the last 12 months. UNG,
the natural gas ETF, fared even worse, declining by 46% over
the last 12 months.
As an aside, the underperformance of UNG is due to the unique
construct of the ETF. UNG seeks to replicate the performance
of natural gas prices by purchasing the front-month natural
gas futures contract priced at the Henry Hub, and rolling
the contracts over each month. Since the natural gas futures
curve is upward sloping (a technical condition labeled as
‘contango’), this means investors in natural gas futures will
lose money over time even if the spot price remains the same.
As such, UNG is only good for short-term speculation.
Meanwhile, the stock prices of our ‘watch list’ of U.S. natural
gas producers have also been beaten down over the last 12
months:
• Chesapeake Energy CHK +1.81% (CHK), $14.24, down by
40.4%
• Cabot Oil & Gas COG +2.45% (COG), $27.53, down by 21.9%
• Range Resources RRC +1.91% (RRC), $46.61, down by 46.4%
• Southwestern Energy SWN +0.97% (SWN), $22.29, down
answered 24/7
Analyze
Interpret
Extract
Page 5
Secondly, U.S. shale oil production will likely peak next month
or in May given the current West Texas Intermediate crude oil
price of around $50 a barrel. According to the just-released
March 2015 ‘Drilling Productivity Report” from the U.S.
Energy Information Administration (which covers U.S. shale
oil & shale gas production until February, with projections to
April), U.S. shale oil production growth will be stagnant by
next month.
Three weeks ago, North Dakota’s top oil official, Lynn Helms,
observed that the state’s daily production may have plateaued
at around 1.2 million barrels a day unless prices recover. Since
then, WTI crude oil prices have remained stagnant, while the
oil rig count in North Dakota has continued to decline. With
U.S. shale oil production set to peak next month or in May,
the amount of ‘associated gas’ production will invariably drop
as well–thus reducing overall U.S. natural gas supply.
Thirdly, natural gas demand, outside of demand fluctuations
due to weather changes, will rise faster than expected as more
energy-intensive manufacturing facilities are being brought
back to the U.S. For example, Dow Chemical is building a $6
billion chemical manufacturing facility to take advantage of
the rise in natural gas supply, while the North Dakota Senate
just last month unanimously passed a bill providing tax
incentives for companies to construct fertilizer or chemical
processing plans (both of which are heavy natural gas
consumers). The bill was specifically designed to encourage
companies to build facilities to take advantage of the natural
gas supply that is coming from the Bakken shale oil field.
Already, there are three projects (totaling $9 billion) that have
been planned to take advantage of this tax incentive.
With natural gas demand growth set to outpace supply
growth, we expect U.S. natural gas prices to recover soon.
Because of the unique structure of UNG, the natural gas ETF,
we would not suggest purchasing UNG. We will instead look
to purchase a select basket of U.S. natural gas producers,
including CHK, COG, RRC, SWN, and CNQ to take advantage
of this recovery.
Get ready for oil deals: shale is going on sale
SUPERIOR TITLE
TRUSTED LAND SERVICES
WITH 35 YEARS EXPERIENCE
TITLE EXAMINATION | CURSORY EXAMINATION
LEASE ACQUISITION | TITLE CURATIVE | SURFACE DAMAGES
ROW | REGULATORY | SEISMIC | MAPPING | DIGITAL IMAGING
SUPERIORTITLESERVICES.NET
EDMOND, OK | 405-330-0555
Posted on March 11, 2015 at 7:11 am by Bloomberg on FuelFix.
com
A decision by Whiting Petroleum Corp., the largest producer
in North Dakota’s Bakken shale basin, to put itself up for sale
looks to be the first tremor in a potential wave of consolidation
as $50-a-barrel prices undercut companies with heavy debt
and high costs.
For the first time since wildcatters such as Harold Hamm
of Continental Resources Inc. began extracting significant
amounts of oil from shale formations, acquisition prospects
from Texas to the Great Plains are looking less expensive.
Buyers are ultimately after reserves, the amount of oil a
company has in the ground based on its drilling acreage. The
value of about 75 shale-focused U.S. producers based on their
reserves fell by a median of 25 percent by the end of 2014
compared to 2013, according to data compiled by Bloomberg.
That’s opening up new opportunities for bigger companies
with a better handle on their debt, said William Arnold, a
former executive at Royal Dutch Shell Plc.
“In this market, there are whales and there are fishes, and the
whales are well armed,” said Arnold, who also worked as an
energy-industry banker and now teaches at Rice University
in Houston. “There are some very vulnerable little fishes out
there trying to survive any way they can.”
Smaller producers with significant debt that depend on
higher prices to make money are the most likely early targets
Page 6
for buyers such as Exxon Mobil Corp. or Chevron Corp.,
companies that have bided their time for years as the value of
some shale fields soared to $38,000 an acre from $450 just a
few years earlier.
‘Consolidation Game’
The market crash is creating “a consolidation game,” Concho
Resources Inc. Chief Executive Officer Timothy Leach said in
a Feb. 26 call with investors. “It’s harder to be a small company
today than it has been in the past.”
In the pre-plunge days, acquisitions were dominated by
foreign buyers overpaying to get a seat at the shale boom
table. That buying frenzy was followed by an explosion in
asset sales as companies pieced together their ideal drilling
portfolios. Joint ventures were a popular way of funding what
seemed like an unstoppable drilling machine.
Now, an expected surge of deals is more likely to feature fire
sales by companies unable to pay expenses, falling asset prices
and a widening division between the haves and have-nots.
Heavy Debt
Sellers will be companies like Whiting, handicapped by heavy
debt and lacking the cash reserves or hedging contracts that
would have provided some insulation from the market crash.
Among the three biggest producers in North Dakota —
Whiting, Continental and Oasis Petroleum Inc. — the value
per-barrel of reserves has fallen by about half since June, the
data show, meaning those reserves would cost a buyer half
what they were worth eight months ago.
Exxon is the only major oil company with a AAA credit rating,
which gives it unparalleled borrowing power for financing
deals. More importantly, the company has $226 billion of its
own shares stashed away from buybacks that it could use to
buy other companies. That was how Exxon paid for Mobil in
1999 and XTO Energy Inc. in 2010.
Chevron holds $43 billion of its own shares in its treasury
alongside $13 billion in cash, and the company has ample
ability to borrow.
An analysis by Wolfe Research LLC analyst Paul Sankey
found the likeliest takeover candidates among major U.S. and
Canadian producers included Continental, Apache Corp.,
Devon Energy Corp. and Anadarko Petroleum Corp. Those
“Our Goal is to provide the best petroleum land services to our clients as is possible, to do it with integrity, confidence and
efficiency, to treat all persons with respect and courtesy, to always act in a professional manner and to enjoy and grow in our
Leasing
•Expert Negotiations
•Value Creation
•Market Expertise
•Professional Mineral Owner Relationships
•Timely processing of documents
Acquisitions/Divestitures
•Title Examination
•Due Diligence
•Property and Environmental Inspection
•Contract Analysis
•Document Preparation
•Reporting
Title Services
•Prospect Strategy
•Value Enhancement
•Detailed Title Examination
•Cursory Title Examination
•Comprehensive Ownership Reports
•Title Curative
•Document Imaging
•Surface and Seismic Examination for
Permitting
Regulatory Application, Hearings and Permitting
•Filing of State Regulatory Applications associated
with the drilling of wells and water usage
•Preparation of Notice lists and well proposals
•Process Management
•Expert witness testimony
•Federal, State and local permitting
•Seismic permitting
•Preparation of Federal Application Permit to Drill
•Preparation of communization agreements
•Strategic planning
Additional Land Services
•Federal, BIA, and State bidding and lease acquisition
•Mineral and Working Interest acquisition
•ARC-GIS Mapping
•Document Preparation
•Prospect Management
•Settlement of Surface Damages
•Right-of-Way Acquisition
•Water Use Agreements
Providing Professional Land Services
since 1986
Rocky Mountain Office:
621 17th Street, Suite 1555
Denver, CO 80293
(720) 627-6181
Fax (720) 627-6182
Texas Office:
P.O. Box 1323
Canadian, TX 79014
(806) 323-6677
companies are big enough to help a buyer such as Exxon gain
oil reserves at a cheaper price compared to peers, Sankey
wrote Feb. 2.
In the headiest days of the shale-buying spree, executives
including Occidental Petroleum Corp.’s Stephen I. Chazen
swore off deal-making, saying it would be more profitable to
focus on developing the assets they’d already acquired. Now
they’re singing a different tune.
Eyes Open
For the first time in years, EOG Resources Inc. Chairman
and CEO William R. Thomas said Feb. 25 the company
was weighing larger deals to scoop up acreage at a bargain,
departing from its usual preference for more incremental
purchases. Exxon Chairman and CEO Rex Tillerson suggested
last week at an investor presentation in New York that the
global oil giant is keeping its eye open for opportunities in
the downturn.
Whiting has reached out to potential buyers including Statoil
ASA about a sale, people familiar with the matter said this
week.
The company took on $2.2 billion in additional debt for its $6
billion acquisition last year of fellow shale producer Kodiak
Oil & Gas Corp., just as crude prices had begun a decline from
more than $100 a barrel to less than $50 at the start of the year.
Corporate Office:
10201 Buffalo Ridge Road
Edmond, OK 73025
(405) 359-6727
Fax (405) 359-6728
- Continued at OCAPL.org
www.rkpinson.com
Members of AAPL | OCAPL | TAPL | DAPL | HAPL
Page 7
Page 8
Page 9
Aaron Meek
Hampton and Milligan
We are currently in the middle of the legislative
session. I will focus this update on the most
impactful bills that have been moved forward in
the legislative process and appear to have garnered
legislative support.
Penterra will undertake every aspect of land work with an eye toward accuracy,
thoroughness, professionalism, discretion, and promoting a positive image within the
industry and community. We commit our passion and skill to driving your venture
forward while exceeding your expectations.
Prospect Management, Scheduling and Reporting, Due Diligence,
Mapping, Lease Checks/Area Checks, Title Research & Curative, Division
Order Preparation, Abstract/Runsheet Compilation, Interested Parties
List, Permit/Option/Lease Acquisition, Working Interest/Net Revenue
Interest Calculation, Right-of-Way Acquisition, Surface Lease Acquisition
and Damage Settlement, Mineral and Conservation Research, Federal,
State, State Agency, Indian Lands Research, Unit Dissolution Research and
Application
Perhaps the most important bill that has emerged
this session is HB2177 authored by Speaker of
the House Jeff Hickman, R-Fairview. This bill
expands the “2011 Shale Reservoir Development
Act” and renames it as the “Extended Lateral
Horizontal Well Development Act.” Currently the
2011 Shale Reservoir Development Act permits
multiunit horizontal wells to be drilled in shale
formations and certain portions of the Marmaton
formation, but it does not permit them to be
OKLAHOMA OFFICE:
LOUISIANA OFFICE:
Kyle Nevels
John Schieber
David L. Dauterive, CPL
James P. Maloney
Charles L. Hill III, CPL
Mark W. Lipari
417 W. 18th St.,
Suite 101
Edmond, OK 73013
Phone: (405) 726-2762
Fax: (405) 726-2768
1700 Kaliste Saloom Rd
Bldg. 5
Lafayette, LA 70508
Phone: (337) 706-8650
Fax: (337) 706-8655
OKLAHOMA, KANSAS, TEXAS, LOUISIANA, MISSISSIPPI, WEST VIRGINA,
PENNSLYVANNIA, OHIO, NEW YORK, NORTH DAKOTA, COLORADO
www.penterraservices.com
drilled in conventional formations. The expanded
and renamed Extended Lateral Horizontal Well
Development Act would allow multiunit horizontal
wells to be drilled in any formation designated as
suitable for multiunit horizontal development by
the OCC. HB2177 passed the House 90-1, has been
given a do-pass recommendation by the Senate
Energy Committee, and looks poised to become
law. See “Speaker’s measure providing more
options for oil and gas development approved by
energy committee,” Edmond Sun, February 11,
2015, and HB2177 Talking Points prepared by the
Oklahoma Oil & Gas Association (OKOGA).
SB565, Bryce Marlatt, R-Woodward, would make
several changes to the drilling and spacing laws: it
Page 10
would allow horizontal units to be of nonuniform
size and shape; it would allow 1,280 acre spacing
for horizontal wells; it attempts to rectify some
of the issues created by the provision in the 2011
Shale Reservoir Development Act with respect
to concurrent vertical and horizontal spacing by
allowing existing operators to elect to participate
in each subsequent horizontal well without
relinquishing their rights in the existing well or
their right to elect to participate in subsequent
horizontal wells; it contains provisions similar
to HB2177 allowing for multiunit wells to be
drilled in any formation deemed appropriate by
the OCC; it would replace the current multiunit
allocation factor, which is based on the length of
the completion interval in each unit, with broader
language that no longer pegs the allocation to
St. John, Griffin & Krieg, PLLC
Attorneys at Law
Civilized Indian Oil & Gas Lease Acquisitions
Surface Damage Disputes
OCC Matters
Title Opinions
1219 Classen Drive
Oklahoma City, OK 73103
Phone: (405) 242-2700
INTERESTED IN
PURCHASING
Producing & Non-Producing
Minerals; ORRI; Oil & Gas
Interests
Please Contact
Patrick Cowan, CPL
CSW Corporation
P.O. Box 21655
Oklahoma City, OK 73156-1655
(405) 755-7200;
Fax (405) 755-5555
Email: pcowan@cox.net
completion interval length per unit. This bill
has been given a do-pass recommendation by
the Senate Energy Committee. See also “Sides
move toward compromise on drilling and spacing
law,” The Journal Record, February 23, 2015,
which describes efforts to correct unintended
consequences created by concurrent spacing
units.
HB2178, also by Speaker Jeff Hickman, R-Fairview,
passed the House 74-23. This bill is one of many
introduced in response to attempts by Stillwater
and municipalities in other states to impose severe
limits on drilling and fracking (see “Legislation
could limit cities’ ability to restrict drilling,” The
Journal Record, February 12, 2015). The bill allows
municipalities to enact reasonable restrictions
on drilling operations, including placement of
Page 11
**Raffle tickets will be sold at the Monday night meetings start
October**
surface locations, but only if those restrictions are
not inconsistent with regulations set forth by the
OCC. A similar Senate version of this bill is SB809,
Brian Bingman, R-Sapulpa, which has been given
a do-pass recommendation by the Senate Energy
Committee.
Land Project Management, LLC
P.O. Box 6603
Norman, OK 73070
Anewcompanyprovidingthefollowingservicesto
theoil,gas,andenergyindustry:
A different approach to the municipal
overregulation issue is embodied in SB468, Bryce
Marlatt, R-Woodward. Under this bill, any mineral
owner whose mineral interest is reduced in value
by 60% or more by a local government regulation
would have the right to obtain compensation from
that local government for the diminution in value
of the mineral interest. This bill would likely make
it prohibitively costly for local governments to
enact prohibitive drilling regulations. The bill has
passed the Senate 37-4.
SB470, Bryce Marlatt, R-Woodward, removes
the requirement to compound interest annually
on certain payments that are not timely made
under the Production Revenue Standards Act;
provides that where title has been unmarketable
for 2+ years, the operator may presume the accrued
We purchase producing and non-producing mineral rights,
royalties, overriding royalties, and working interests.
H. Huffman & Co. is a non-operating Oklahoma company which has
been in business for more than 65 years and owns interest in 28 states.
Please contact us for consideration to purchase your oil and gas
interests you are interested in divesting.
x
x
x
x
x
x
x
DueDiligence/CursoryTitleReview
FullInceptiontoPresentTitleReview
Leasing,Farmouts,Assignments,andWellTrades
OklahomaCorporationCommissionExpertTestimony
TitleOpinionCurative
FollowupTitleReview
RightofWays
J.AlvaBrockus,CPL
(405)217Ͳ0210
alva@lpmͲllc.com
Ourgoalistoprovideyouwithquickturn
aroundontheservicesyouneedtokeepyour
projectmovingforwardonschedule.
proceeds to be abandoned;
Page provides that interest
is not applied on proceeds that are not timely paid
when the owner elects to take in kind or where
the owner cannot be located. This bill was given
a do-pass recommendation by the Senate Energy
Committee.
As the session continues to progress, it will become
more apparent which bills and which versions
of similar bills are likely to pass. If you know of
legislative or regulatory activity that you would
like the Legislative Affairs Committee to analyze
and discuss, please let us know by contacting
Aaron Meek at meek@hampton-milligan.com or
(405) 235-5620.
301 NW 63RD STREET, SUITE 510 • OKLAHOMA CITY OK • 73116-7927
PHONE: (405) 848-3388 • FAX: (405) 848-3689
RCLARK@HHUFFMANCO.CO M • SELLIS@HHUFFMANCO.CO M
Page 12
FIELD LANDMAN SEMINAR
Thursday, April 9, 2015
Willow Creek Golf & Country Club
Oklahoma City, OK
www.landman.org
facebook.com/AAPLAmericasLandmen
Twitter: @AAPLlandman
Page 13
1
Brief Overview
The American Association of Professional Landmen and the AAPL Educational Foundation invite you to
attend a FREE Field Landman Seminar. The Trustees of the AAPL Educational Foundation initiated these
events to provide a forum for field landmen to gather for education, networking, and good food, all at no
cost to all AAPL Active Members and $50.00 to non-members attending. Members who NO-SHOW will
be invoiced $25. This program designed for Field Landmen to have the opportunity to register to become
a member of the AAPL.
The $50.00 registration fee covers this education class, happy hour, dinner, plus your first year of
membership dues (through June 30, 2015 if approved). Please note: You can fill out your
application prior to attending this seminar and bring it with you for processing.
The program begins with happy hour and a Buffet dinner, and will be followed by an AAPL Update and
two presentations:
Speaker
Speaker
Richard Grimes
Grimes, Anderson & Day Law Firm
“Regulatory Issues in Horizontal Drilling”
Travis P. Brown
Mahaffey & Gore, P.C.
“Verifying the Validity of Oil and Gas Leases
Held by Production from Marginal Wells”
Page 14
2
Event: Field Landman Seminar
Hotel: Willow Creek Golf Country Club, 6501 S. Country Club Dr., Oklahoma City, OK 73159
Date/time of event: Thursday, April 9, 2015 || 5pm-9pm
Registration Cost: Free for members, $50 for non-members which does go towards your first
year of membership if you turn in a membership application at the event.
Cancellation Policy: Members need to cancel at least 5 days prior to the event otherwise they will
be charged a $25 no-show fee.
Class Capacity: 150
Accreditation: 2 CPL/RPL/RL credits
AGENDA
Thursday, April 9th:
5:00 PM
6:00
7:00
8:00
9:00 PM
Registration & Happy Hour
Dinner
Speaker: Travis P. Brown
Speakers: Richard Grimes
Adjourn
AAPL Contact
Heather Hunt
Education Meeting Planner
Phone: 817-847-7700
Email: hhunt@landman.org
Address: 800 Fournier St.
Fort Worth, TX 76102
Page 15
3
EVENT REGISTRATION
Field Landman
409FLS
Oklahoma City, OK
April 9, 2015
You can also register online at www.landman.org
Name: _____________________________________ AAPL # __________
Company: ___________________________________________________
Address: ____________________________________________________
City, ST ZIP: __________________________________________________
Phone: ________________________ Fax : ________________________
E-mail: ______________________________________________________
MAIL TO:
REMIT CHECK:
AAPL
P.O. Box 225395
Dallas, TX 75222-5395
REMIT CREDIT CARD:
AAPL
800 Fournier St.
Fort Worth, TX 76102
Fax: (817) 847-7704
Field Landman
AAPL Member
NonAAPL Member
Registrations & Payment Received:
Deadline April 6, 2015


$0
$50
ATTENTION: If you are paying by check, please note that AAPL cannot process your registration
until the check has cleared; this delays your registration process by at least 1 week. AAPL
recommends that you pay by credit card whenever possible to ensure quick reservation and
confirmation. ** Please cancel within 5 days of the event or you will be charged $25 **
CALL OR E-MAIL
Payment Information
QUESTIONS TO:
Credit Card #: ___________________________________________________
Heather Hunt
(817) 847-7700
Exp. Date: _____________ Card Security Code (CSC): _______________
hhunt@landman.org
Name on Card: _______________________________________________
Signature: _______________________________________________________
Page 16
2015 OCAPL Officers
*Executive Officers
and Committee Chairman
President
*Love, Amy
Vice President *Watkins, Nick Treasurer
*Rice, Robert Secretary
*Beavers, Matt 1st Past President
*Miles, Lindsey 2nd Past President
*Walker, Mike AAPL Director (thru June)
*Woodard, Julie AAPL Director (after June)
*Miles, Lindsey Awards and Nominations
*Walker, Mike Community Affairs Chair
*Fixley, Lindsey Community Affairs Co-Chair
Gannaway, Stephanie
Community Affairs Co-Chair
McGee, Jordan Education, Chair
Enteshary, Cameron
Education Co-Chair
Jennings, Brandon
Entertainment Chair
McCurdy, Sam Entertainment Co-Chair
Carlozzi, Brian Ethics *Brooks, Jeff
Field Landman Chair Hardegree, Jerrod
Field Landman Co-Chair
Oliver, Jim
Fishing Tournament Chair
Graham, David Fishing Tournament Co-Chair Cope, Richard Girls Night Out Chair Wickham, Diana
Girls Night Out Co-Chair
Ellis, Sandy
Golf Tournament Chair *Naik, Bhavin Golf Tournament Co-Chair
Kammerer, Brandon
Industry Affairs Chair Parks, Colt
Industry Affairs Co-Chair
Sweeney, Mont Leglislative Affairs Chair
Meek, Aaron Leglislative Affairs Co-Chair
Hampton, Dave Membership Chair
Love, Bethany Monday Night Speaker Chair
Noble, Lars
Monday Night Speaker Co-Chair Campo, Jennifer
Newsletter Chair
Fleharty, Michael
OU EM Mentoring Co-Chair
Vawter, Brandt OU EM Mentoring Co-Chair
Hennigan, Bryan
OU EM Advisor Long, Steve
Public Relations Co-Chair
Richards, Clarke
Public Relations Co-Chair
Raney, Grant Special Advisor Askins, Carrie Special Advisor *Woodard, Julie Special Advisor Richards, Jack Sporting Clays Chair
Noblitt, Darrell Sporting Clays Co-Chair Reed, Shannon Website Chair Dickensheet, Dan
Website Co-Chair
Ivey, Aaron
Weekend Take Off Chair
Wheeler, Tami Weekend Take Off Co-Chair
Anderson, Leslie
YPE Chair
Orr, Dillon
OCAPL Manager
Portwood, Teresa
Advertising Price List for the
Ocapl Record
amy@mekusukey.com
Advertisement Price:
nick.watkins@chk.com
_______ Quarter Page Add @ $500 for full robert.rice@continentalland.com
year (10 issues)
matt.beavers@dvn.com
Ad Requirments:
lindsey.miles@dvn.com
- 3 1/4 wide x 4 1/2 tall
- Ads need to be submitted in PDF or JPG with at lease 150 dpi resolution
mike@benttree-inc.com
julie.woodard@chk.com
Payment is due prior to publication
lindsey.miles@dvn.com
CONDITIONS: All advertising copy is subject to the approval of OCAPL. Where copy is not furnished by the
mike@benttree-inc.com
deadline date, the space reserved will be moved to the
lindsey.fixley@aep-lp.com
next issue subject to availability. Advertising is accepted
in the order in which it is received until all space is filled.
stephanie.gannaway@chk.com
jordan.mcgee@warwick-energy.com
centeshary@rkixp.com
bjennings@frontlineland.com
smccurdy@rkixp.com
bcarlozzi@rkixp.com
jeff.brooks@chk.com
jerrod@benttree-inc.com
Oklahoma City Association of jimoliver@tahoelandservices.com
Professional Landmen Office
davidgraham@jmaenergy.com
rccope@sbcglobal.net
dianawickham@cox.net
Teresa Portwood
sellis@hhuffmanco.com
OCAPL Office
bhavinnaik@garyamonroe.com
P.O. Box 18714
brandondkammerer@gmail.com
colt.parks@dvn.com
Oklahoma City, OK 73154
mont.sweeney@mac.com
ocapl@coxinet.net
meek@hampton-milligan.com
hampton@hampton-milligan.com Website: www.ocapl.org
glasgowbl@sbcglobal.net
lnoble@rkixp.com
jennifercampo@tripowerresources.com
mf.superiortitle@gmail.com
abvawter@hotmail.com
bryan_hennigan@eogresources.com
slong@ou.edu
clarke.richards@dvn.com
grant.raney@chk.com
Next Newletter Deadline:
carrie.askins@dvn.com
APRIL 9, 2015
julie.woodard@chk.com
2015 Newsletter Chair:
jack.richards@dvn.com
Michael Fleharty
darrell@noblittoilandgas.com
sreed@heritagetrust.com
mf.superiortitle@gmail.com
dan@jackforkland.com
aaron@jackforkland.com
twheeler@burnsstowers.com
Prepared by Dustin Burton
landerson@hhuffmanco.com
dorr@sandridgeenergy.com
ocapl@coxinet.net
Page 17
OCAPL
PO BOX 18714
OKLAHOMA CITY, OK 73154-0714
NEXT
MEETING
APRIL 6,4,2015
NEXT
MEETING
NOVEMBER
203
THANK YOU FOR BEING AN OCAPL MEMBER!
Page 24
Page
18