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Oil/Gas/Royalty Logan County Oklahoma


Received pooling order for Sec 2 17N 4W Logan County August 12, 2013.Sent letter to Stephens Production Co. Fort Smith Arkansas that same day electing a cash consideration of $600/ac and 3/16ths.Never received bonus or any communication Letter Rec'd Mar. 4 2014 from Stephens Notifying of completed well with DOFS Sept. & Oct. 2013.No division order enclosed asks me to verify decimal which is 1/8th not 3/16th which I requested.Also wants a W-9 returned. What recourse do I have and what should be done?

Hopefully they received your election letter. I usually send those with tracking number to be sure, or get them to verify by email. As you probably know, the pooling order also has a default election, applicable to those who don't elect on their own. They often read something like:

"Failure to Elect: In the event any owner fails to elect within the time and in the manner as
set out above which of the alternatives set forth in Paragraph 6 above, any such owner accepts, then such owner shall be deemed to have accepted the highest cash bonus and lowest royalty for which such owner qualifies."

If they never received your election this could have happened to you, but you should have still received the bonus. My first call would be to Stephens to notify them you haven't been paid, and to confirm you were pooled at 3/16 rather than 1/8. I'd ask for proof payment had been sent etc. if they claim they sent it. I noticed that a month later the section was also force-pooled by Shields Operating Company, though no one named "Larry" was included in that one, and it looked to be the just companies (other working interest owners) that were included with that pooling.

Stephens Production Company
P. 0. Box 2407
FT Smith, AR 72902

It's not uncommon for a division order to take a while to get to you after a well is drilled, though by state law they are supposed to begin paying you within six months of first production. Interest is due on any payments that are not paid on time per the Production Revenue Standards Act in (I believe) Title 52 of the Oklahoma Statutes.

The Oklahoma Corporation Commission (the regulatory body for oil and gas in Oklahoma) has a wealth of information available online relating to oil and gas activity and production in Oklahoma. You can look up such things as drilling permits, recent production information, well completion reports, forced-pooling orders, and anything else that falls under their jurisdiction.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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