"Some tribes objected to the inclusion of their lands in the fracking rule, which was finalized by the Bureau of Land Management in March and was accompanied by a 395-page explanation document." http://www.indianz.com/News/2015/017877.asp GALEN!!!!!!!!!!!
Yeah Galen. You said the BLM Rules wouldn't be involved directly but I sure noticed that it was written in the BIA Super's letter to all the oil and gas producers, plain as day, as adherence to BLM Onshore Order 5. So who's full of hot air and gas here? You or the members of the Minerals Council who stand against all of your artful dodgering?
This is a BLM rule so we are automatically exempt. However since the possibility that someone like the EPA might adopt a mirror version that would rope us in, we sent people to Washington a couple of years ago to testify at hearings for tribal input on the proposed fracking rule. There were several things in that version that we particularly didn’t like but none of them made it into the final version. Also, the BIA recently came out with an in depth study that pretty much debunks any widespread connection between fracking and ground water contamination.
To the second poster, I’ve never made a secrete of the fact, and have explained it many times that two BLM onshore orders were included in the revised CFR 25 226 as BIA adopted standards for the installation of gas meters, measuring gas for MM/btu quality and the proper maintenance and oversight of the equipment. And the other lays out the requirements for the safe handling of wells that produce H2S gas. These onshore orders are only adopted as industry standard guidelines and convey no regulatory authority to the BLM over the Osage. Any more than adopting the American Petroleum Institute (API) standards over oil measurement or the National Electric Code (NEC) standards on electric installation gives those organizations regulatory power. At this stage of the game I am forced to conclude that anyone that does not understand these simple facts either has not read the new rules, have read them but are unable to understand what they say, or are purposely trying to deceive.
Galen can you answer this question, Is tge BIA going to give the producers a grace period? I know reslity is a matter of perception, but in you opinion why do some of the Producers feel as I coin, A tug a war going on with the BIA?
Because the federal law governing the rule making process states very clearly that the new rule goes into effect July 10th the BIA is very reluctant to use the term “grace period”. However they have stated over and over again that if a producer communicates with them a legitimate reason why they can’t comply and a plan to remedy the situation they will grant them the time needed to carry out their plan. At one of the training sessions Eddie Streeter (regional director) stated “that nothing would make the BIA happier than to bring everyone into compliance without issuing one fine or penalty”. In fact fines help no one, compliance does, and neither the BIA nor the MC gets to keep the money. Andrew and I introduced a resolution in last weeks MC meeting that would encourage the BIA to declare a formal, blanket 90 day grace period from issuing fines. We know the BIA is concerned about the MC suing them at some future point about loosing tens of thousands of dollars each month from added royalty the new rule will generate if they act too slowly in getting it into place. We felt that a request from the MC to grant the extra time might alleviate the BIA’s concerns, but the measure failed.
Pretty magnanimous of you, Galen, to vote for a grace period when your vote in April, 2013 created the problem by voting for the CFR's. Your vote, along with Andrew's and Sonny's, was in spite of the OMC voting 5-3 against the new regs. A grace period for your handiwork. Really. Most shareholders have a lot better memory than you think, Galen!
Anonymous 6-22 @9:15am. I believe you just like to make trouble and will never believe the truth no matter what. Galen, more people believe you other than these trouble matters.
To the blogger @11:04AM, how am I making trouble when, as a shareholder and producer, I am having to comply with the new regs or be threatened with immense fines? The fear of having leases terminated and loss of one's livelihood is real. If you aren't walking in my shoes, then you have no right to criticize my viewpoint. Myself and other small producers are really panicked. Listening to the BIA at the "instructional" sessions, it is very obvious they don't know or don't care about the consequences of the new regs. Scary indeed.
It is the Law..why are you so panicked? As Galen said the BIA wants everyone compliant and will work with you if you state your crises and is valid...can't go wrong there. And as I have said the regs. was in the makes before the HPP CASE settled. It is as much as the BIA failure to capture and enforce as it is to the Producer to be compliant. Over three Years to come to Industry Standard, and It is baloney when I hear we had no warning of this? Hog wash..All of us Knew that the valves were going to mandated to be changed..everyone is entitled to have their opinion and I respect what you are saying, not one producer who has posted on this site has argued the fact that this was not expected. I also said way back when, if you were listening this will affect the smaller producer's in the long run. And the monopoly needs to end. That being said...why can't we help the smaller producer's in a different way...everyone needs to picket the BIA and take a stand..I do think that since some producers are not financially equipped to handle this type of change...after all we want whats best for everyone. Though I still agree with Galen, Yates and Abbott.
What industry standard are you talking about? BLM Onshore Rules apply to public lands that are managed by the Federal government, not privately owned land like in all of Osage County. What you refuse to understand, not fail to understand mind you, is that the cost of doing business per well has gone from a single $5,000 bond costing $250-$500 per lease of 160 acres no matter how many wells drilled, to $5,250 per every well drilled up to 25. For a single well drilled the cost of doing business is 10 times higher. For twenty-five drilled the cost is 262.5 times higher.
The payment to the landowner has gone from $300 for every well drilled to $2,500 for every single well drilled. The cost of doing business is 8.33 times higher for every well drilled.
The reason that 60% of the producers are drilling in the Osage is because it has been less expensive to do business here and has attracted a host of small to mid-sized producers who are currently bringing 60% of the oil and gas out of the ground on which royalties are now being paid to the shareholders. If they have to leave because they can no longer afford the cost of doing business in Osage County, along with them goes 60% of the royalties being paid and distributed in the quarterly headright checks. With oil now down roughly 50% from where it was a year ago, can you also afford to lose another 60% on top of that? Try and think. I can't afford that and most of the shareholders I know can't either.
The new CFRs were not in the makes before the HPP case settled because the CFRs NegReg committee didn't exist prior to the settlement agreement being signed because it was the settlement agreement that created it. Get your facts straight, please. There's enough confusion around this new versus old CFRs issue as it is.
Thank you 11:25AM for your in put. Some folks just don't know how ugly this is. There were some of the MC that tried to keep all this from happing but the MC are not all on the same page.
BLM onshore orders apply to all allotted, Tribal, and federal leases nationwide. A Tribe may choose to enforce standards higher than the BLM standard, but not less than the standard. The surface ownership does not matter. Split estate lands, even if the bottom hole is 2 miles from the surface hole, are still subject to onshore orders and NEPA compliance. Mr Crum has indicated that only a couple of the onshore orders have been selected to enforce in Osage County. For those with questions about ONNR I suggest going to one of their training sessions. You won't get answers from the Agency bcs they don't know. The Agency has done a pitiful job at explaining NEPA, the difference btw an EIS and an EA, etc.
To the blogger @ 10:26AM, you state that the BIA will work with the operators, according to Galen. Obviously you have not been a producer trying to comply with the current regulations, much less the new regulations coming down the pike. The HPP lawsuit was about accounting issues and yet, the BIA, in typical government overreach, has expanded the mandate to rewrite rules on bonding, valves, tank fees, commencement monies for starters. The BIA has not been working with anybody. Otherwise there would be more than 10 wells drilled in the last year and fines, "not to exceed $500", would not be automatically $500 regardless of the severity of the offense. I'd love to see Galen, Sonny and Andrew drive off in their clown car into the sunset because the new regs are truly a laughable piece of legislation.
You say "These onshore orders are only adopted as industry standard guidelines and convey no regulatory authority to the BLM over the Osage." and "At this stage of the game I am forced to conclude that anyone that does not understand these simple facts either has not read the new rules, have read them but are unable to understand what they say, or are purposely trying to deceive." You must exhibit all 3 of the above because the New CFR clearly states CFR 226.3 (2) Adopt onshore oil and gas orders, NTLs (which is exclusively a BLM procedure) or related oil and gas regulations issued by the Bureau of Land Management. THIS IS AN OPEN DOOR FOR THE SUPT. TO IMPLEMENT BLM IN THE OSAGE AT ANY TIME AND WHENEVER SHE WANTS TO AND THERE IS NOTHING THAT THE OMC CAN DO ABOUT IT BECAUSE IT WAS GUTTED BY THE NEW CFR AND LOSS OF POWER OCCURS NUMEROUS TIMES. These changes were NEVER discussed at the NEG REG Meetings and were all added AFTER it went to DC. NOW WHO DIDN'T READ OR UNDERSTAND THE NEW CFR??? At least you can admit that this train wreck was of YOUR making and that the THREE of YOU voted against the Direct Resolution of the OMC to NOT send these premature CFR's to DC exhibiting your total ignorance of the repercussions for the Osage. You never spoke up at the Training when BIA was implementing the 48 hour tank setting, you never even spoke up when the BIA REFUSED to allow BONDS to be STACKED AFTER you told Producer's that they would be allowed to do it! At least other OMC members have spoken up for the Producers. How can you tell other Shareholders that there are only TWO VALVES that have to be replaced when the BIA provided a diagram revealing numerous valves??? At the very least, STOP patronizing the people who's lives are forever changed in the room and seeing what their parents, grandparents, and themselves have worked all of their lives to build only to see the BIA regulate them out of existence and you telling them that everything is going to be OK...FOR WHO???
BUREAU OF INDIAN AFFAIRS PUBLIC INFORMATIONAL SESSIONS LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING 25 CFR Part 226 The Bureau of Indian Affairs (BIA) invites the public to attend informational sessions on the new oil and gas mining regulations for the Osage Mineral Estate that were published in the Federal Register on May 11, 2015. The new regulations will become effective on July 10, 2015. The Public Information Sessions will be held at the Wah-Zha-Zhi Cultural Center located at 1449 W. Main, Pawhuska, OK 74056, at the following times: June 23, 2015 5:00 pm - 9:00 pm June 24 2015 1:00 pm - 5:00 pm June 25,2015 10:30 am - 2:30 pm The new regulations may be found at: www.gpo.gov GPO.GOV
THE LAST Training was yesterday... The On the Street News, one person pointed out that the Coffee Shop name for it was "The Bend Over and Take It Training!" The common thread throughout all of the "Trainings" was: Write a letter and tell the Supt. that you can't meet the TWO MONTH Deadline to suddenly BOND every well for $5,000 EACH when you were Bonding 1-7 for that and 8 and more for $10,000! (When there is ONLY one Bonding Company that will still write Bonds in the Osage it is literally Take it of Leave it and good luck getting it done by July 10!) That was brought about because the BIA refuses to release Bonds once a NEW Producer takes over a Lease with THEIR OWN BOND. One man pointed out yesterday that his brother has one that the BIA has not released in FOUR YEARS after it was sold. ILLEGAL??? That is like double insurance but more importantly a total disregard for common business practice. (AND NOT IMPROVED WITH THE NEW SUPT EITHER!) Replace all of the MILES of Reda Cable in the Osage that powers the pump jacks in less than 2 weeks and as long as it is intact I was told by one Producer that HE would run it through the bathwater of his precious grandbaby. BUT NO LONGER ALLOWED. Just WHO is going to go inspect 1 MILLION 444 THOUSAND Acres of land in the Osage when the BIA can't even gauge 15 tanks per month with 12 Petroleum Engineer Techs (PET)??? Replace the valves on the tanks that will NOT stop the theft of anything since at least 2 people pointed out that they are not required on 2 of the leading ways to steal oil, through the Thief Hatch (DUH?) and the salt water tanks where 50% of the oil is stolen in the State of OK. Congratulations another rule made by people who HAVE NO KNOWLEDGE of the Industry and refusing to accept input from those who KNOW. Have a Site Security Plan in place that no one at the BIA even had a clue what was to be in it? These are just a sample of what cannot be accomplished with the Snap of the Finger and the whim of the QUEEN... OFF WITH THEIR HEADS!!! FIRST MEETING it was REQUIRED that the Producer call in the fact that his oil was ready to be picked up to the Supt. HE was NOT ALLOWED to notify the Purchaser to pick it up, however for 48 hours to allow the BIA time to go find it and gauge it!!! (This was presented as if it were part of the new CFR in the Power Point and the handouts YET IT WAS NOT!) Chaparral pointed out that they had TWO Burbank tank batteries that SOLD 5 loads EACH per day (about 1,800 BARRELS PER DAY) and THEY wanted them to shut them down for 48 hours??? CO2 Flood loses the "charge" if they have a power failure and loses hundreds of barrels for DAYS when that happens, imagine shutting them in???
Biddick, Biddick & Revard (BBR Corporation) just wrote a letter to their gas purchaser, Scissortail, stating that BBR Corp. is cancelling its gas contracts and requested the removal of their gas meters on all their gas leases.
The letter reads as follows:
"Please be advised that BBR Oil Corporation will not be selling any gas in Osage County after July 11, 2015. You may remove the following meters at your convenience:
Meter Station Meter Name Legal Description 81-118 N Pawhuska 23, 24-26N-9E 81-119 Maze 1, 2 12-26N-8E 81-120 Dome Lease 12-26N-8E 81-123 Osage 1A 16-27N-10E 81-124 Maze 5, 9 1-26N-8E
BBR Oil Corporation is not able to spend the time to learn the new reporting system and does not want to be responsible for accounting to the BIA for volumes, price, royalty, BTU, etc. on our marginally economic wells in Osage County. Paying someone else to do that accounting would make producing our gas uneconomic.
For that reason, our two remaining producing leases, Maze and N. Pawhuska will be shut in on July 31, 2015 and there will be no future sales into ScissorTail meters".
End of letter.
Many more producers will be making the same decision soon. It's not feasible or economical to comply with the CFR's. The DOI/BIA is accomplishing their intended results. No more oil and gas operations in Osage County. Good bye quarterly checks!
Tip of the iceburg? A third generation Osage County operator wrote this letter to his gas purchaser and he is sending a copy to BIA today. Biddick, Biddick & Revard (BBR) have drilled hundreds of wells in Osage County over the past 60 years. Lloyd Biddick, Bud Biddick and George E. Revard (an Osage) founded the company 60 years ago and their children currently operate it. They are leaving the Osage for good, I am sad to say, for all the reasons that we have been warned about with these new burdensome CFRs. BBR Corporation was responsible for bringing Phillips Petroleum's gas gathering system to the Osage in the 1950's. It is now owned by Kinder-Morgan. BBR simply cannot continue to operate their wells at a loss after July 11, 2015. They cannot afford to wait on what the OMC or the Nation are planning to do to fix this mess.
After 60 years of drilling risks and contributions made to the Shareholders, BBR Corp. is taking their capital elsewhere. Who would blame them? The Osages should stand up for the producers and Shareholders and take immediate action to prevent the implementation of the new CFR's, EA's and beetle bugs.
The Osage Agency better staff-up to process thousands of plugging permit applications. Most of the small operators will be exiting the county, abandoning their wells without the funds to plug them. Is the BIA going to fund the plugging of these wells?. Who will be monitoring the abandoned wells after the producers leave? I would think the surface owners are going to be in for a real surprise soon. Leaking wells and tanks. Very dangerous wellhead pressures, no more road maintenance, etc.
As an Osage County producer, I am interested to know what the Shareholders think about the current situation concerning their mineral estate. What do you hear from the council members you elected. Are they keeping you advised of the issues and what their plans are to address them? Have you communicated with the Osage producers offering them any support? Are you individually taking action against the BIA to stop the implementation of the devastating CFR's, EA's, etc.?
We producers would like to hear from you. Are your quarterly checks so low now that it doesn't matter any more?
I am working this problem as furiously as I know how, probably more so than with any problem I've had to deal with other than fighting for my dear Mother's life when she had Rocky Mountain Fever in 2002, two bouts of C-Diff that nearly took her life, not once but twice in 2006 and 2007 respectively, and pneumonia earlier this year in February. I am on it as fast as I can go. Hold on, I am on your side in this thing am doing everything I can to work with everyone I can think of to turn it back and save what we have left right now. PLEASE don't file to go out of business until we can get our trenches dug out and and manned appropriately. I am on the phone, I am on the internet, I am up all night, I am with you. Just hold on...
To PROTEST this Bureau of Indian Affairs (BIA) arbitrary compliance requirement without a grace period for the Oil and Gas Producers in Osage County: Contact the Oklahoma Delegation if you live in the State of Oklahoma at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ok Contact the California Delegation if you live in the State of California at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ca Contact the New Mexico Delegation if you live in the State of New Mexico at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=nm Contact the Texas Delegation if you live in the State of Texas at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=tx Contact the Arizona Delegation if you live in the State of Arizona at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=az Contact the Colorado Delegation if you live in the State of Colorado at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=co Contact the Kansas Delegation if you live in the State of Kansas at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ks
To PROTEST the new CFR compliance requirements without a grace period after July 10, 2015, for the oil and gas producers, contact Sally Jewell at http://www.doi.gov/public/contact-us.cfm To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Kevin Washburn, Assistant Secretary of Indian Affairs at http://www.indianaffairs.gov/ContactUs/index.htm To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Eddie Streater, Acting Regional Director at http://www.bia.gov/WhoWeAre/RegionalOffices/EasternOklahoma/index.htm To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Robin Phillips, Superintendent, Osage Agency at http://www.bia.gov/WhoWeAre/RegionalOffices/EasternOklahoma/WeAre/Osage/index.htm
Information on U.S. Government Committees of the House and Senate:
U.S. House of Representatives; Subcommittee on Oversight and Investigations and Members (The Subcommittee on Oversight and Investigations will pursue aggressive oversight of the Obama Administration[Executive Branch] and federal agencies, programs and policies within the Committee's jurisdiction.): http://naturalresources.house.gov/subcommittees/subcommittee/?SubcommitteeID=5064 The Subcommittee on Indian, Insular and Alaska Native Affairs and Members: http://naturalresources.house.gov/subcommittees/subcommittee/?SubcommitteeID=5066 Committee on Natural Resources Contact Information: https://naturalresources.house.gov/contact/
The U.S. Senate; http://www.indian.senate.gov/ The Senate Committee on Indian Affairs and Members: http://www.indian.senate.gov/about/committee-members Contact Information: http://www.indian.senate.gov/contact
I am (Name) and I have a matter of the utmost importance to bring to your immediate attention.
As of June 5, 2015 with a letter written to all of the oil and gas producers in Osage County, Oklahoma by Bureau of Indian Affairs, Osage Agency Superintendent Robin Phillips, a new Code of Federal Regulations will become effective on July 10, 2015. I am writing to you to make you fully aware of the harmful and potentially devastating effects these new CFRs will have if and when they go into effect, upon the small to medium oil and gas producers and their businesses, the businesses in Osage County that will feel the loss of the income and the loss of royalty income generated and paid to the Headright owners who benefit from the Federally administrated and managed Osage Mineral Estate Trust by the Secretary of the Interior and the Bureau of Indian Affairs.
To begin, Osage County has approximately 14,000 wells producing 12,000 barrels per day or less than a barrel a day per well. Most of the wells in production are referred to as stripper wells. 60% of the oil and gas business in the county is handled by small oil producers who cannot afford the increases in business costs demanded by these new CFRs. In addition, the lead time from June 5th to July 10th is only a matter of 35 days to become compliant; a shockingly short lead time to be certain, causing such a terrible hardship that many may have to go to the extreme limit of abandoning their wells to avoid the fines for violations that will go into effect on July 10, 2015.
Please consider these communications that have appeared on the online Osage Blog at http://osageblog.blogspot.com/2015/05/osage-shareholder-matters-may-2015.html and http://osageblog.blogspot.com/2015/06/osage-shareholder-matters-june-2015.html and http://osageblog.blogspot.com/2015/06/osage-shareholder-matters-june-ii-2015.html
Suggested Form Letter -- Part 2 “As an Osage County oil and gas producer, I received a letter from the Superintendent dated June 5, 2015 advising all producers that we need to be incompliance with the new CFR’s on or before July 10, 2015; she threatened us with fines and penalties if we have not met the requirements by that date. I am not able to meet the requirements by the deadline and possibly might not ever be able to do so. I have spoken with several other producers who are also not going to be able to comply. Five weeks’ notice to make the changes to our leases and to come up with the cash required for the additional bonding requirements is unachievable for a significant number of us. In Galen Crum’s press release, he misrepresented the facts concerning the bonds. It is true that the premium amount for the bond is minimal (approx. $250.00/year); however, for me to obtain the bond from my insurance company, my bank has to issue a letter-of-credit in the amount of the bond ($5,000.00) which is then pledged to the insurance company issuing the bond. My bank also requires that I establish a certificate of deposit in the same amount to be used as collateral for the letter-of-credit. In other words, each bond will cost me $5,250.00 cash. Most of us small producers cannot afford to bond several dozen wells each within this time frame and maybe never be able to do so. The cost to make the valve changes on each of our batteries is also very expensive and even if we had the extra funds to comply (which I don’t), we could not get the work performed on all our tank batteries prior to the July 10, 2015 deadline. A typical two-tank battery will require replacement of seven valves. Even if a supply store had in-stock the thousands of valves necessary to accommodate all of Osage County, the roustabout companies which have survived could not service all of our properties prior to the deadline. The producers are not going to be able to comply to the new CFR’s for these reasons and many more. If the Superintendent follows through with her threat to fine and penalize us effective July 11, 2015, we’re doomed. I anticipate thousands of wells will soon be abandoned in Osage County with many of the producers facing the possibility of filing for bankruptcy protection, myself included, to be sure. I wish the Shareholders good luck. I am also a Shareholder who is very saddened by the current situation.”
“Some Osage County producers are shutting down and preparing to abandon their wells and leases due to the fact that it is not possible for them to comply with all of the new requirements between now and the July 10, 2015 deadline. What supply store has tens of thousands of the new valves in inventory this day and age. How can the few roustabout companies and vacuum trucks left in Osage County manage to perform the necessary work on all of the tank batteries in Osage County within this time frame? What bonding company is willing to and able to issue tens of millions of dollars of surety bonds within these next few weeks? It's not possible. The Feds are imposing regulations that a very few large oil and gas companies can comply with. The majority number of producers in Osage County are small entities with very limited resources especially now with the low price for oil and gas production. They are considered "poor-boy" operators trying to survive in a very bad climate.”
Suggested Form Letter -- Part 3 “I anticipate that several thousand wells will very soon be abandoned. Who's going to check on the wells every day to make sure they are not leaking or sabotaged? The producers might be upset enough to damage the wellbores prior to abandonment so that the Feds can't utilize them. Any new potential buyer will have to be very cautious. There may be unemployed pumpers and contractors, employees, etc. that may get an attitude and find a creative way to exit the leases for the last time. I'm not promoting this but I am familiar with some of these folks and wouldn't be surprised. They might drop junk in the wellbore that would be non-recoverable. Millions of dollars of equipment will start disappearing. The County Sheriff will be very busy. With no field employee over-sight, it will be a cake-walk for the thieves even in broad daylight. If the producers are smart, they will strip their leases of equipment prior to exiting. The plugging liability will probably first be placed on the Lessee who will be out of business and long gone. I would think that since the mineral estate is held in trust by the Department of the Interior, they should be responsible for plugging the wells using the original $5,000.00 bond funds now in place for each lease and then using US tax payers' funds for the millions of dollars of plugging expense. Also remember, an Osage County operator may not plug a well without BIA approval for which a producer cannot obtain now without an environmental impact study which may take another year or two. Since the wells are capable of production, the application Form 139 for plugging should not be approved by the Superintendent. If the Osage Nation offered the new leases to another operator, the new lessee/owner would probably expect assurance from the Osage Nation that the wellbore(s) have integrity. Good luck with that! During the Fed's evaluation (The Bureau of Indian Affairs) of the new CFR's, do you think they considered the above repercussions? They should have.”
"After 60 years of drilling risks and contributions made to the Shareholders, BBR Corp. is taking their capital elsewhere. Who would blame them? The Osages should stand up for the producers and Shareholders and take immediate action to prevent the implementation of the new CFR's, EA's and beetle bugs.
The Osage Agency better staff-up to process thousands of plugging permit applications. Most of the small operators will be exiting the county, abandoning their wells without the funds to plug them. Is the BIA going to fund the plugging of these wells?. Who will be monitoring the abandoned wells after the producers leave? I would think the surface owners are going to be in for a real surprise soon. Leaking wells and tanks. Very dangerous wellhead pressures, no more road maintenance, etc."
If 60% of the mid to small oil and gas producer’s businesses fail and 50% of the businesses in Osage County are oil and gas related, this will be economically devastating to the largest county in the State of Oklahoma.
Please be aware of this catastrophe about to take place beginning on July 10, 2015 and do what you can on an immediate basis to turn it back as soon as possible.
Thank you for your immediate attention to this all-important matter.
Good luck with writing to the US Federal Government.
At the first instructional meeting they emphasized in a very adversarial voice and very condescending voice that the CFR's are final and we need to comply by July 10th. They said that the CFR's will not be amended or changed and that we better prepare for the deadline.
I have something to say back to them during the next couple of weeks. Good Bye!
Good luck trying to re-enter my abandoned wells!. I hope the BIA has the funding immediately available to plug all my wells, I don't have the funds to do so and wouldn't invest the funds if I had the funds. I'll take my capital to another area; start over under a different entity like all the other operators I have been visiting with. Good luck to the surface owners with the mess the BIA caused. Keep the kids and pets far away from the wells and equipment. It will be very dangerous, to be certain. See ya, bye bye!
Guess ,no one will mine if I add these form letters to the Non-Osage Shareholders Blog ? Great grandfather, A.W. Comstock had 500,000 acres leased in a stenographers name, for the Uncle Sam Oil Co. but the Standard Oil Company had political pull and plenty of money, which won out in the end. Chief Bacon Rind and a good number council members were replaced by Standards choices. Homer Fincannon or H
Lol. OSAGEBLOGGER, just wanted to say thank you for your dedication for the Truth and all your hard work does not go unnoticed with this Osage. What a mess.
Thank you! I really appreciate your words of encouragement. We have to keep fighting for a good government for the Osages and a good financial situation for our oil and gas producers and the Headright Shareholders, now and in the future.
Tribes should be allowed to decide for themselves whether regulations governing their lands are necessary, to protect tribal lands "It is not appropriate for the United States to determine for tribes what is in their best interests by setting forth one federal rule after another, in retrospect to the CFR's. We determine what works for us not the other way around? That is our inherent Sovereign right? Is this not argument enough?
The Federal Government does not care what is in the best interest of our Tribe. They are intentionally punishing our Tribe for the $380,000,000.00 settlement. Also, the current administration's goal is to abolish the use of fossil fuels; this is an easy step forward for the arrogant narcissist in office. Our current OMC is not qualified to manage the Mineral Estate either. The Shareholders need to recall half of the Council Members and put in place a board of qualified experienced managers. I recommend hiring retired former directors and officers of major oil companies or large independent oil companies.
I think the Tribe should file another lawsuit against the DOI/BIA for the current damage they are inflicting on the Mineral Estate and its Shareholders.
I suggest we all march in front of the Superintendent's office in the presence of the press and have our Tribal law enforcement officers remove the Superintendent and her staff from the premises.
What you suggest, by way of removal, unless they are Osage Headright owners is ON Constitutionally untenable according to Article XV. I can't advocate for removing the BIA Agency Superintendant or her staff, but peaceful protest has always been the way forward against oppression in the USA. I say go for it. Schedule it and we will be here to promote it and get the word out to every corner, nook and cranny that we can. Annette Gore, 99 years young, is ready to hop in the car and come across the country at the drop of a hat to join this effort. We have a voice in this matter and we have every right as U.S. Citizens and Osage Nation Members to use our voices to say NO! THIS WON'T HAPPEN IN OSAGE COUNTY! THIS WON'T HAPPEN TO OUR OSAGE PEOPLE, TO OUR OIL AND GAS PRODUCERS, TO OUR SHAREHOLDERS AND TO THE RESIDENTS OF OSAGE COUNTY WHO WILL COME TO SUFFER AS A RESULT OF THE LOSS OF INCOME AND THE DESTRUCTION THAT IT WILL CAUSE TO EVERONE AT HOME AND TO HEADRIGHT OWNERS ALL OVER THE COUNTRY. Let's do this and STAND UNITED AGAINST ALL THESE ECONOMICALLY DESTRUCTIVE FEDERAL REGULATIONS THAT APPEAR TO BE ROBBING US OF THE OPPORTUNITY OF BEING ABLE TO REMOVE THE LAST OF THE OIL AND GAS STILL AVAILABLE IN THE MINERAL ESTATE IN OSAGE COUNTY. We must take on the responsibility of protecting ourselves BEFORE these regulations go into effect on July 10, 2015 by peacefully protesting against all these economically oppressive and destructive Federal regulations.
The last meeting to explain the new CFRs with at least 8 BIA personnel (Superintendent and her boss and his boss plus solicitor's office) in attendance is tomorrow at Cultural Center in Pawhuska 10:30am. Large Producer attendance expected. It would be nice to have a large contingent of OSAGE Headright owners present to support our Producers. Maybe even get up to speak and ask questions. Please come! We can prepare some question here for you to take. First Question: Did the BIA personnel conducting the Negotiated Rulemaking consider the Economic Impact to the Shareholders, Producers and the Osage Co. Economy when rewriting the CFRs? The answer of course will be "no" so then you could ask them to confirm that this blunder has caused an avalanche of "unintended consequences" with continued financial harm to the Osage Shareholders. Second question: Since the Old CFRs were not enforced, how is the Osage Agency going to staff up to enforce the new rules, give detailed information on how many old and new staff will be responsible for each and every one of the new rules. Third Question: How many measurement specialists will the Osage Agency have on hand to witness meter inspections and will they be certified as fully trained witnesses and how many meters will they start witnessing per week to insure the meters are properly calibrated and samples are taken according to industry standard? At minimum that is twice per year for every gas meter. Fourth Question: How many gas meters are currently measuring natural gas in Osage Co? (if they can't answer that one then ask how they intend to be prepared to enforce their own new rules?) Just start reading what is new and improved in our new CFRs. It won't take long to come up with more questions.
This is an IMPORTANT SURVEY for the Osage Nation Members. Please take the time to fill it out and send it in online right away: https://www.osagenation-nsn.gov/what-we-do/elections/survey-2016
With all due respect please take the time to read the following comments:
I am an Osage Shareholder and also an Osage County producer. I am a third generation Osage Producer responsible for hundreds of wells having been drilled in Osage County. I have benefitted at times with much success and more times than not been set back with failures. In other words, I’ve drilled a lot of dry holes. I spent the same amount of time and capital whether the result was successful or a failure.
The Osage County producers can drill in other states and other counties within Oklahoma. The ones that chose to drill in Osage did so thinking they could explore a relatively low risk area and have the opportunity to make a decent return on their investment. Some producers have been more successful than others; some due to luck and some due to experience and wise choices.
In counties outside of Osage, the mineral owners who are often times the surface owners welcome an oil and gas operator to take the risk of drilling on their land. Many times in my career, I have made the mineral owners wealthy by having drilled on their land. I’ve had school teachers that commuted 200 miles per day be able to retire at ages 30 years old or so and never have to work another day of their lives. Needless to say, we were a blessing to them and they treated us like family.
In the Osage, things are very different. We are treated as if we are adversaries preying on the Osage people. The surface owners usually own no mineral rights and therefore we are a nuisance to them. The Osage Tribal Council and the Shareholders act as if we are opportunist wanting to take advantage of them. When we have issues seeking the Mineral Council’s support, we confront them with our knees shacking and hoping for their favorable decision as to what ever issues we need resolved. We’re at their mercy.
Osage County is considered “poor boy” country. The average oil well is less than one barrel per day. We have to cut every corner we can to scrape a profit. We do not have the profits that allow us to have the most modern equipment, nice gravel roads, etc. When one of our wells needs work, we have to wait a while to sell another tank or two of oil before we can fix the well.
As difficult as it is in other counties of Oklahoma and other states to operate, there is no place more burdensome to do so than in Osage County, Oklahoma.
Now that the Tribe has allowed the EPA and BIA to impose their new rules and regulations upon the producers, it’s like having the last nail hammered into the coffin. I’m not bitching about a few extra hoops to jump through or over; I’m just saying that oil and gas exploration and production in the Osage will be coming to an end.
It’s especially sad for me as a very proud third generation Osage county producer. I am more proud that I am an Osage Indian. My Great Grandfather served 33 years on the Tribal Council and was the first US Deputy Marshall in Indian Territory. He went to Washington many times under a few different presidential administrations and was also an interpreter for the Tribe. He would be so disappointed to see what we have let happen to our heritage and Mineral Estate.
I will soon be abandoning my Osage County wells, forming a new entity and continuing my career in areas that are friendlier. I’ll be drilling wells on the folk’s land that will have me over for dinner and who will be asking when I might be drilling my next well on their place saying “hopefully soon”.
Our current Council Members think that when we leave, others will be lined up to take our place. Not this time. Things are very different. Ask the almighty Superintendent a couple of straight forward questions. How many wells have been drilled during the past six months? How many re-completions have been attempted during the past six months? I am more interested to know how many new operators have entered the county recently. I bet the answer will be zero.
The producers asked for Shareholder support for their legal defense fund. I am so disappointed in the Shareholders. How many are there of us? Maybe 10,000 or even 15,000? Guess how many Shareholders responded as of yesterday? Two letters of support and five financial contributions, which were appreciated very much. I’m not kidding! I can’t believe my fellow Shareholders are so indifferent and uncaring. Shame on us. Really? If we won’t help our partners in their efforts to survive, we desire the same fate (death) they are experiencing.
Oh well!
As a Shareholder, I’m ashamed. As an oil and gas operator, I’m transferring assets, changing my name and moving elsewhere to places that are friendly and just as profitable as the Osage once was. I emphasize “once”.
Ante up before we haven't anything left but an economically dead County. Get out your checkbooks and send them some money to help stop this insanity taking place by the BIA. What has to happen to you before you start to act like you understand what is taking place and what will be left of our home if you don't. You can't afford not to help out now so be generous or you may never have another chance again. Send in your money right now to the address shown above for the Osage Defense Fund. I sent in my contribution. Now you send in yours.
The best reason to invest is that it works! A federal judge in Wyoming issued an injunction last night to block the implementation of the Interior Department’s fracking regulations on federal land, meaning that they will not go into effect today as planned. "Judge blocks BLM Federal fracking rule" -- http://thehill.com/policy/energy-environment/245933-judge-blocks-federal-fracking-rule?wpisrc=nl_daily202&wpmm=1 This article is worth reading every word.
I am a small producer (small enough I do wellsite consulting work in other places to pay my bills) and I am hoping to actually acquire some Osage production in the next few months. Is it the CFR changes that have got you pulling up stakes from Osage County, or is it all the issues related to the Donelson lawsuit and the lag time waiting for county-wide EA to get finished? The good folks at the Osage Agency have assured me that workover permits will start being issued in the next several days, and the county-wide EA should be finished around October-November so the drilling permit process will be regularized. It is worth noting that Performance performed their own EA, submitted several drilling permits and had them approved. Last count, they had drilled and completed at least 12 wells so far. If it is the CFR changes that you have found to be so burdensome that you can't continue to operate, would you share with us which particular rules have the most impact?
I'm certainly not trying to be adversarial, I'm just wondering if I am missing something big here that I need to be aware of before finalizing a pending transaction to purchase some more production. I know the bonding issue has a lot of folks upset. My banker has told me he will write me a letter of credit for $125,000 to cover the 25 well bond cap. It won't be free, it will cost me $2500/year, but it is worth it to me. I'm currently paying a bonding agency already, so the cost increase isn't tremendous. I attended the meeting Tuesday night, and I thought the site security provisions were explained fairly well. The valves of interest just have to be sealable: this doesn't have to be a locking valve, just one on which a seal can be placed to indicate if the valve has been opened. All the seals and breaks have to be logged, and that's certainly not convenient, but not so burdensome as to not be tolerable. Twice annual calibration of gas meters is a new provision, but other companies I've worked with have internal policies to calibrate meters either quarterly or semi-annually.
I'm not an Osage nor am I a shareholder, so please excuse me if I am not supposed to post here.
Small producer, if the property you are acquiring has electric installations, the new regs could cost you serious money. Don't believe the staff at the Osage Agency; there are no new re-entries until the EA, Beetle bug, etc. have been satisfied. Do you have the staff necessary to comply with the new accounting and reporting system? Are you OK with paying an extra amount for the royalty oil than what you receive? We're all leaving and the reasons are too numerous to discuss here. Good luck! If you have investors, there may be legal exposure due to putting their funds into an acquisition that is doomed to fail. Why do you think we're all leaving? I suggest you talk with the producers and not the BIA! Just saying!
To 7:31 AM---I am really getting sick of all this rabble-rousing some of you are doing. The poster at 6:39 above is apparently interested in acquiring production in the Osage. That would help us Shareholders. He got his bonding in order, and obviously has reviewed the new cfrs and finds nothing that he can't deal with. I suggest you sell him your leases and get the hell out if you don't want to play by the rules.
To the Producer soon to produce in Osage County. I to am coming to Osage County to drill...I produce and work with a company that is self regulated above and beyond approach. We have learned in this Industry.self reliance works..We perform our own EA's before during and after and confer with the Landowners from time to time to stay in good standing,.basically the Regulations are not so overboard or an overreach..by the Federal Government. We as a company have ran across many endangered species such as the Amercan burying beatle. I can make a profit and the Shareholder's will see their's to.
Looks like we can hear more good things here than we've ever heard out or our illustrious mineral council. Mr. Producer, if there's anything we Shareholders can do to help, I guess you'll have to post it on this blog. If something gets in your way, please let us know here.
Over the past few months,a hell of a lot of information has been shared concerning the OME.Good or bad,right or wrong,this has been the way of the Osage and the US government since the area known as Osage county became the center of the Osage People.That has been a long time and hopefully will continue until the end of time.We the Osage continue to live in a shared modern world,where anything is possible.We the Osage have way too many groups working on Osage matters and I see not much unity and if there is its just for show.Just maybe we the Osage can take the time to become re-united in all things as we were not many generations ago.
I am glad John Moncravie, that you have spoken up. The lack of Unity is for better or wosre a understatement. The division started over a 100 {rears} ago and most recent since we became a DeFacto Gov. But never so divided as we are today. This was not the intent in my belief or road that this Gov, has been so self serving..we were to take...A per-cap was to be distributed to the Constituency, has not happened, Money lost with many boards not being held accountable and the list goes on..sound familiar? Education funds only to realized elsewhere not here in Osage County...no work. Its time the Osage think about a Constitutional Convention and hit restart...it was much simpler when we were just the Osage Tribe.
Be we the Osage as traditional,cultural,or modern,we represent not only ourself,our family,but we represent the endless generations before us as We the People of the Osage.A Osage Constitutional Convention,Yes.Hitting a restart button,a very big NO.We the Osage,over these many past years have seen and lived many Osage Constitutions.This newer one is the only one,which has lasted longer that any other one,except for the 1881 Constitution.Tho the newer one,is a fast track and may look like a copy and paste document,it is just my humble opinion,it was a needed document which needed authority to be accepted by the US government without needing years of inter-tribe fighting of producing a sound Osage document.The foundations were built and today we continue to build those foundations.stronger.It may not look stronger but it is.Making something better is a lot better than changing something.many of Osage don't care for change and that is a proven fact.
"getting sick of all this rabble-rousing some of you are doing." You call trying to save the economy of the largest County in Oklahoma rabble-rousing? How weird is that? Galen can escape across the border where he lives in Kansas. The rest of us can't. So where do you live that the destruction of so many businesses that will cause damage to so many lives as a result means nothing to you?
@12:07, "Osage don't care for change and that is a proven fact." ~ So the answer was to cram "change" down their throats with little deliberative thought and as fast as possible? How interesting and in-fact un-Osage.
Not really any difference between they way the ill-conceived CFRs are being crammed down our throat or they way the no thought "cut and paste" constitution was crammed down our throat.
"Unity," I've gown weary of hearing the word. Unity is always fine as long as everyone is "uniting" behind the principals of the one espousing said unity.
"We need to unit behind the nation," "We need to unit behind the MC," "We need to unit around a prayer circle in the middle Bluestem lake." While some are at camp preaching unity and neo-ethnic hegemony by supplanting traditional values with pan-indian(ism) some of us have picked up our battle axe and run ahead fighting with our last breath. The time for good words and good feelings are over, pick up your axe and join the battle. I don't care what flank you attack on but for God sake, Attack! I promise, if we make it out this alive when we come back we can revisit the whole "unity" thing ...but right now there is a battle to fight.
Write a letters, call a congressman, object on record, donate to a cause, send pamphlets but do more than set idly by and talk about the importance of who ideas we need to unit behind.
If you think we're stupid enough to believe that you two producers are going to be coming in to do business, you can think again. Why weren't you there at the last lease sale? Are you waiting for the new CFRs to take effect? Or are you just one of the three stooges of the Osage trying to CYA with putting up comments here that are chock full of disinformation. Hahahahahahaha. No one is buying your line sucker.
To the blogger @ 6:39AM who is interested in buying production and starting business in the County, yes, you are missing something. First, why don't you seek out some producers who have been here for a while and understand the effects that the new regs will have? Talk to the Osage Producers Association. If you still feel like this is your bag, go for it but I feel you don't have all of the facts. For instance, the new regs require the producer to pay royalty based on NYMEX but the producer generally gets the HPP. or about $3 less/barrel. Thus you will pay royalty on money you won't receive. Works out to about $200/barrel/year. Doesn't sound like a lot but it may be the difference between the ability to pull a well or not. Termination for non-production is now 120 days instead of 1 year. If you have problems, you may risk losing your lease. Still interested?
A new Special Session of the ON Congress has been called by the Chief. New legislation calls for another Boards and Commissions appropriation amendment is on the Agenda. The Osage Nation Energy Services, LLC is a Board and an appropriation of millions could be forthcoming. This Board needs to be under the umbrella of the Minerals Agency and Management of the Minerals Council if it has anything to do with the Osage Mineral Estate as per the Osage Nation Constitution, Article XV, Section 4, Paragraph 3. If the Chief tries an end-run around the Constitution on this issue with the ONES, LLC, we need to be prepared to file complaints to the AG against the Chief, Asst. Chief and any member of Congress who votes for this spending until the proper organization per the Osage Contitution has been established for the ONES. LLC. The legislation hasn't been released yet but when it is, we need to be on it. In addition, there are appropriation bills for direct services to the Osage people that have effective dates in October of 2015. Is this some sort of end-run too? If they have gone beyond the projected revenue prohibition in Article VI, Section 23, in fiscal year during 2015 until the Fall Budgeting Regular Session, then we also need to be prepared to file complaints against the members of the Osage Congress with the AG for having done so. We may have to file against the Chief and Asst. Chief too, to stop them from spending every dime we've got and more, especially since all Osage Nation revenue will likely spiral downward after the new CFRs are put place. This time we have to act and not sit back and wait for all this spending to continue. I don't think for a split second that the 2016 fiscal year projected revenue amount will actually be realized and come in anywhere near $43,775,000. This figure is questionably speculative at best and I would like to see an "official document" that lists all the actual revenue coming in on a monthly basis that the Osage Nation made for all of 2014 up to May of 2015.
I seriously concur...I said the involvement of the Ones and the Chief are barking up the wrong tree with a great conflict of interest..Sorry but thats the truth. One hot TallChief.
Is any part of the U.S. Department of the Interior without major management problems or not under some sort of cloud? Take a look at this web page from the Committee on Natural Resources: http://naturalresources.house.gov/oversight/ig/
Woah! "A Majority Staff Report, entitled “Holding the Interior Watchdog Accountable,” details mismanagement by Ms. Kendall while overseeing the IG (U.S. Department of the Interior Office of Inspector General). These include: not pursuing investigations involving political appointees or Administration priorities; informing senior Department officials of problems without conducting formal investigations and not issuing reports to Congress and the public; not adequately documenting the management of IG investigations and operations; serving in an appointed policy role in conflict with the IG’s investigative duties; preventing an investigator from seeking information from a White House official; and providing inaccurate and misleading information to Congress."..."The IG (Inspector General) is charged with being an independent watchdog for Congress. It’s completely unacceptable and inappropriate for the IG to be taking orders from the Department…especially about what information to withhold from Congress." I clicked on this page about killing coal mining and it's a wealth of knowlege too --->>> http://naturalresources.house.gov/news/documentsingle.aspx?DocumentID=373966 This looks like the path we're headed down beginning on July 10, 2015.
So, I guess what you're really saying is that when the Democrats are in office, the thugs get away with it but when the Republicans are in office and Scooter Libby "outed" CIA operative Valerie Plame Wilson, the wheels of Justice turn? What you're suggesting is a corruption so profound on the part of the current elected top official of the Executive Branch and his "cronies" as you put it, it reaches right into the heart of the Legislative Branch like a virulent cancer. Apparently, Plame's attorney agrees with you: "Melanie Sloan, one of the Wilsons' attorneys, said: "We are deeply disappointed that the Obama administration has failed to recognize the grievous harm top Bush White House officials inflicted on Joe and Valerie Wilson. The government’s position cannot be reconciled with President Obama's oft-stated commitment to once again make government officials accountable for their actions."
I posted earlier at 6:36 AM, and I figured I would respond to a few commenters. I am indeed planning on purchasing some producing leases in the Osage. I have spent a few years of my career working in Osage County, so I am well acquainted with a few producers and have some friends that work for some of the larger companies in the area. I have asked producers and members of their staff what they think of the new CFRs, and I've heard a range of comments from 'it's the end of the world' to 'it's not that big of a deal'. My experience has been that some (certainly not all) Osage producers have operated for years with very poor practices, taking advantage of the lack of regulations (and lack of enforcement of existing regulations).
In my estimation, using NYMEX is a pricing index shows a lack of understanding as to how oil is sold, traded and priced--not to mention how the purchaser generally pays distributions--on the part of the individuals that wrote the new CFRs. It will certainly end up being a headache, but in terms of impact to a producers bottom line, I don't see it being a big deal. The change in the manner in which gas royalties will be collected is a bigger problem to me; consider the following scenario. A typical gas contract for an Osage County lease will pay 60% of the Oklahoma zone I index price for a month in which average daily gas production is less than or equal to 100 MMbtu. The new CFRs call for gas royalties to be paid on Oklahoma zone 1 pricing. For a lease with a 1/5 royalty that sells 100 MCF/d the producer will get paid for 80 MCF. The producer will be paid based on the 60% of the index price, but since the royalty must be paid on 100% of the index price, the producer must pay an incremental 40% of the royalty (since the purchaser will just pay 60% of the index price), which would end up essentially being an additional 8%. So the producer will end up getting paid (after royalty) for 40 MCF from every 100 MCF that is produced. This rule change again shows a fundamental lack of understanding of how gas is sold and transported. However, gas contracts have always been pretty lousy in the Osage, and I'm looking for oil and not gas anyway, so I can live with this rule change.
So far as termination of leases occurring after 120 days, I don't see a real problem here. Most leases outside of Osage County have either a 60 or 90 day cessation of production clause.
I don't know about anyone else's experience with oilfield electrical equipment in Osage County, but in my time working up there I have encountered cut-off boxes and pumping units that will shock you when you touch them and electrical lines on the surface that have bare conductors exposed. I think the requirement for production facilities to comply with the NEC is a response to poor practices that have been in place for years. I recall a lease I worked on that not only had REDA cable running on the ground (which seems to be acceptable to many Osage producers) but actually had it hanging from trees in several spots! Let's be realistic here: the BIA isn't going to have an electrical inspector go line item through every pole, fixture and piece of equipment on every lease and check for compliance with the NEC. The reality will be that if there are glaring problems evident to an Agency field tech making a visit to a lease, a producer is going to have a problem. However, this isn't a bad thing: bad electrical equipment can kill or seriously injure personnel working on equipment, not to mention kill livestock or start fires.
There's a lot of unsafe, environmentally hazardous junk around Osage County. For my part, I'm smart enough to evaluate what I'm buying and plan for the repairs and upgrades that may be necessary to bring a lease into compliance.
If you think you're smart enough to operate in Osage, who am I to dispute your claim. But to equate leases outside of Osage is folly. The 60-90 cessation provision allows for some sort of demonstration of work to hold the lease. Not the case in Osage. If you have not produced in 120 days, sayonara. Moreover, outside of Osage, you can hold your lease by spudding on the last day of the lease expiration. In Osage, the lease has to be producing by the end of the term or sayonara. You seem hell bent to operate. Go ahead. But 2 operators, one operating since 1933 and the other since 1940 have exited the County. You might want to know why.
In any county outside of the Osage, you are allowed to perform maintenance on your wells if they go down for some reason. Consider a stuck pump due to scale. You bring in a rig spot some HCL maybe treat you formation, hang well on. No problem. However; in the Osage your pump gets stuck-your lease is terminated. Why? Because you are not allowed to perform maintenance on your well with out an EA and ABB study. Also, to treat your well, you need to submit a form 139 for BIA approval. The BIA will not approve your Form 139 until you have an EA and ABB study. These EA's are expected to be completed in the year 2017. Well goes down, you loose your lease and have to plug it!
To the blogger @6:35PM, have you really done your homework? The new regs state that you are responsible for plugging and site restoration in perpetuity. In other word, if you buy a lease that has multiple wells, whether producing or not, and you later sell that lease with an approved assignment from the BIA, you are still on the hook for the plugging and site restoration along with the new owner. The gift that keeps on giving.
To the new operators coming into Osage County: I'm being forced out of the county by the EPA and BIA with no support from the MC along with numerous other operators. If you have any plans to re-enter our wells that we cannot afford to plug they could be damaged beyond repair, if you know what I mean; you know how accidents happen from time to time. We cannot sell our leases because we no longer have good title as the title is clouded by the Donnelson-Friend lawsuit. Who would purchase our leases when they would not be allowed to re-complete the existing wells or drill new wells? You have a little more due diligence to perform.
The Minerals Council isn't going to stand up on a band box and announce to the world what they plan to do about what's going on. Osages are quiet people and don't ratchet up the noise level in dealing with whatever it is that they have to deal with. You've been around long enough to know that. Things don't change because of how serious it is. If anything, they keep even more of their own council. It's early days and it's not over yet. Keep your hats on and let's wait and see what happens.
Hey wait and see! Really? Guess what smart ass? Our livelihoods are at stake here. I'm talking about survival, mortgages, tuition, helping elderly parents and grandkids, medical bills, etc.. This is not a hobby for those producers posting here. We're talking bankruptcy! I'm being forced out of business with my producer friends by these CFR's and abandoning 38 wells that I have my whole livelihood invested in. It's as if I put every dollar into the stock market and the market crashed. Don't tell us to wait for a change. The OMC is spineless and clueless. The Shareholders should scalp two of them and they know who they are and are proud of their obstruction. You must be drinking the Galen Crum & Andrew Yates coolaid. Really? Take a leap dumb ass!
Listen. A lot of us are curled up in a ball over this situation, figuratively speaking, and we feel shock, the pain and the outrage for the producers just like you do. There is nothing right about this and don't think that it has doesn't have nearly everyone scrambling to stop this from happening to everyone working in the oil and gas business in Osage County. Plans have to be made and they have to be made quietly because, as you have pointed out, there are two on the Minerals Council who will be running back to you know who to expose them and make it a lot more difficult for a successful execution of the plan for it to work. No one is being flippant here and no one ever intended to be.
"Another rider addresses hydraulic fracturing standards on federal and Indian lands. The rule goes into effect today but the bill would prevent the Bureau of Land Management from implementing it." See White House threatens veto of funding bill for Indian programs at http://www.indianz.com/News/2015/017952.asp It appears that if this bill is vetoed by Obama and the rider fails, then the new BLM rules will be going to effect retroactively as of June 24, 2015, effectively layering on a whole new layer of fracking rules in Osage County. I thought this was a done deal, Galen and now it looks like it's far from it, What do you have to say about this? The Minerals Council had better be prepared to include this situation too in whatever they plan to do about this third avalanche of government regulation along with the new CFRs and the NEPA requirements.
While you're at it, ask Sonny Abbott too. He was always the ring leader and I hear Kugee is in complete denial of what is going on right now. He seems to be going along with the Chief. Chief doesn't have a store like so many other Osages who have businesses which will be affected all over the County. Anybody who has an expensive house had better look out too. I've seen houses drop in my day with foreclosures taking the market down 40% to 50% depending on what kind of property it was and people with big loans and a small down payment who are probably still underwater. I'm also waiting for you to respond Galen. You all so had this sewn up, did you? Well, it looks like it's unravelling all over the place.
To Osageblogger on June 27, 10:30 AM, this ‘rider’ refers to the BLM and FEDERAL INDIAN LANDS. The Osage Mineral Estate was bought and paid for by the Osages, along with the surface rights. Our predecessors sold most of the surface acreage, but the mineral rights were put into a Federal Trust, owned by the Osage Tribe,(now the Osage Nation), and for the benefit of decendents of the original allottees. If the individual surface allotments had each been put into Federal Trusts as well, we would still have it. THE OSAGE IS NOT FEDERAL INDIAN LANDS and THE BLM HAS NOTHING TO DO WITH THE OSAGE MINERAL ESTATE. Only the BIA has any jurisdiction in the Osage, and they are not mentioned in this ‘rider,’ therefore the new fracking rules, be they good or bad, will not impact the Osage whatsoever. Only the BIA can make operating rules here and fracking is addressed in the new cfrs.
12:45 Have you READ the New CFR to become effective July 10, 2015? Allow me to enlighten you, the BLM is already here with 2 Onshore Orders, NTL (ALL BLM RULES) included AND there is a clause that says that the Supt. may bring in any and all BLM Rules at any time WITHOUT THE APPROVAL OR CONSENT of the OMC. The OMC has had a massive LOSS OF POWER and they are only allowed to now "advise" the Supt. who is in no way required to act on any of it! This was NOT agreed upon by the NEG REG Rulemaking Meetings BUT THERE IT IS! You think that it is only sour grapes from the Producers? What are the Shareholders going to do when their Osage Minerals Estate check goes to NOTHING? The asset is already severely de-valued from the $4 Billion that it was valued at before the approval of the new CFR. EA, EIS, and NEPA are all being enforced and the BIA is NOT the only one who has jurisdiction, a Producer was told at one of the meetings recently that he would have to get PERMISSION of the Fish and Wildlife, AND this was from the Environmental Officer of the BIA... now who do you think is running this show?
Permission to re-work a well... or anything that involves the BUGS! Right now, you can't do a BUG study until May 15 when they "come out" and then they go back in Sept 15 so you can't do any work from Sept to May and only do studies May to Sept then WAIT 5 - 7 MONTHS to get the BIA to approve your Permit. Fish and Wildlife have NEVER had any authority in the Osage... until NOW!
My bet they will get off our land. And this is why...not to far form the apple that dropped off the tree. We were a Tribe before time right? They cannot come in here impose especially we bought the land, though it is in trust does not allow these reges because it is? And this is simple to our Sovereign.
Still as fresh as a breath of Osage hilltop air after a electric storm, the two short stories, one by maybe Chief Seattle and the other by H. at TheTwoNativesCasino.com. A final chapter, was to be added before the the oil ran out in 2050, but because of unseen obstruction by the forces at hand , will have to post date a chapter. H
Our oil hasn't run out and will not any time soon; our fast reserves will remain in the ground because, as of July 10, 2015, it will be uneconomically feasible for our producers to extract it due the our Federal Government's revenge on the Osage Shareholders for the $380,000,000.00 settlement.
They have not supported the Osage Producers Association in their attempt to fight the new CFR's. Five of the 10,000 to 15,000 Shareholders made a contribution to the defense fund. (.04%). The Shareholders apparently don't care about their headright payments or the sacrifices the producers have made. The Shareholders must not care about the lower royalty payments. With a couple of exceptions, they do not post to this blog which is named after them.
The producers are on their own. Many of the small producers, such as myself, will be forced out in a couple of weeks.
Too bad and so sad.
If anyone knows of another blog that the Shareholders read and post to, please post the site so that we producers can contact them. It is obvious they are not following this blog.
Any legal action that is taken by the Minerals Council is usually funded out of the million dollar drawdown that is available on an administrative basis yearly. If the entire drawdown isn't spent in a given year, it is returned to the Federal Trust account to be distributed to the shareholders. If the S510 account is earmarked; that is also available and can be put to use for the Shareholders if legal action is taken on their behalf. Many Osages feel they are already likely going to be paying for legal action out of either the drawdown or the S510 account that will be paid on their own legal behalf. There are quite a number of people who come in to take a look at the Osage Blog but don't necessarily post comments.
The Shareholders have no leadership. The OMC has not shared their plans (if any) with the Shareholders. As a Shareholder, I have not received one bit of correspondence from the OMC as to the CFR's and the OMC's plans to deal with them.
Even if the OMC eventually takes legal action against the DOI/BIA, the Shareholders could also benefit from contributing to the Osage Producers Association's legal actions. It would be in our interest to do so.
This is a very serious situation. As a Shareholder, unfortunately, I have more faith in the Osage Producers than I do in our own Mineral Council.
I disagree. From my point of view, the MC has had way too much and too strong a macho "Team Osage" leadership in the recent past that has lead everyone concerned right off of the proverbial cliff. Fortunately, we now have three women of substance on the Council who can counter balance all that testosterone that has nearly lead to the ruination of the oil and gas business in Osage County. When these women say "Mum's the word." By God and all that I hold holy, "MUM'S THE WORD!" Everyone's got a right to their opinion and that includes mine. As for a contribution to the legal defense fund, I'm all for it because as you say, this situation is of the utmost seriousness and I believe that a two pronged attack on a fixed legal position is far better than just one. So get out your checkbooks people and be generous. This isn't just your quarterly check were dealing with anymore, this is the whole county that will be affected and that's us, our family and friends and our livelihoods. For those who live away, it's all of those back home who will suffer the losses directly and immediately and these are people we love and care very much about. Send in your contribution today. Nothing in your lifetime may be as important as this situation right here and now that we are facing today so bear that in mind while you're writing out that check.
Let me add to that one more thing. You have the opportunity right here and now to step up and take your place to be heroic for all who follow in your stead in the years to come. So BE HEROIC!
One thing about the BIA. There have been enough comments flying around about this being the BIA's revenge on the Osages and the BIA should be aware of it by now. What surprises me is they have made no public attempt to deny it. That says a lot right there.
Right...as I said the hammer is going to hit the desk and come down hard on this Agency..I've noted this comes from the upper echelon. If the BIA ignores as they ignored as they have in the past but nothing will this time be lost in translation, sorta speak..
Reading the article and not the ruling it sounds like agencies must now take into account the "economic impact" of the rules they issue. Can it be extrapolated that as of this ruling the ruinous CFRs may have to hit an automatic redo if someone brings the issue forward?
Supreme Court: EPA unreasonably interpreted the Clean Air Act. This is a landmark ruling that I believe will inform the behavior of all regulatory agencies where economic impact is concerned. High fives to the Supreme Court, The State of Michigan and the Coal Industry that has won a big victory today. The Obama administration needs to get out of the job termination business and set about honoring its job creation campaign promises and pledges. A big move in that direction is to stop promoting one pet energy sector to the detriment of all others that are needed economically on the ground for the American people and Native American Nations and Tribes everywhere. I am elated with this Supreme Court decision!
Official Information on Michigan v. Environmental Protection Agency is located at http://www.scotusblog.com/case-files/cases/michigan-v-environmental-protection-agency/
Where is the Osage News and the Bigheart Times on a huge thing like this? It's a good thing for this here Osage Blog or we wouldn't have any news that's up to the minute on the Mineral Estate for the Shareholders.
It will be if it's legally used properly as having set a precedent to stop all these regulations coming in from one regulatory department, agency and bureau after another (without a prior economic impact analysis) that will surely kill the ME if they are allowed to go forward and become effective in Osage County.
After checking in on the 'Blog' a few times this month, I've noticed the "Gee the CFR's and being over regulated is good for Shareholders. They have been ripped off to long"! Where are these defenders from 3 months ago? I can just see Mid July's BIA Operations Report; 'Emergency Plugging ' 1 well, NO NEW WELLS DRILLED, 1 Hole dug by the ' American Burying Beetle' . Signed Jeannie Hale Acting Superintdent.
ABB joke is funny. The Bigheart Times has an article in the recent edition on ABB Credits available from Conservation Banks that can be bought on an acre by acre basis.
Where are we on this peaceful protest? Are we doing this or not? In addition, we can celebrate the Wyoming Federal Decision to grant an injunction against the new BLM Rules and the LANDMARK Supreme Court Decision on Michigan v. EPA! Just in the nick of time and it seems, by Divine Intervention. Thank you, God! I am delirious with JOY! Turn out to Save the Osage, Save Osage County, Save our Oil and Gas Producers and Save the Osage Mineral Estate RALLY! Why not hold it in the new Pawhuska Arbor on Sunday, July 5th, 2015?
I think the Rally should be on July 10, 2015, the effective date of the new CFR's. The Shareholders should demand that every Mineral Council member attend. The majors of every town in Osage County should attend as well as the Osage County officials. We should also ask the owners of retail stores, restaurants, service companies, etc. to attend, along with the producers and Shareholders.
The press and television reporters should be invited as well.
Now you're talkin' !!! GOOD IDEAS! We need a coordinator to make the arrangements for a location. Wakon Iron was used before when the young people were protesting the changes to the Osage Nation Scholarship program. The Arbor may or may not be available as its predominant use is for the In-Lon-Schka that is a religious ceremony. Someone will have to call the 5 Man/Woman Board to see if the Pawhuska Arbor can be used for such a purpose and to make the arrangements for permission and a permit or whatever may be required to use it as the rally location. Let's get busy and get this scheduled and on the calendar. We will probably need to form an action committee to get the Rally on its feet. Let's also ask the Osage News for a free listing for the event when it's scheduled. Also, someone needs to get it listed in the local papers to include the Bigheart Times when the plans have been finalized. We need volunteers and you can send your names to the Osage Blog e-mail address at osage_election_news@comcast.net We don't have much time so let's get to work!
A day in the life of an Osage County producer. Short story.
I am an Osage Shareholder and also an Osage County producer. I have posted numerous posts to this blog during the past couple of weeks. This post will be my last and I wish all Shareholders and producers good luck in the future.
I went to one of the oilfield supply stores to purchase more valves to meet the new CFR requirements. As expected, they are sold out as they do not carry an inventory of these locking valves and they have had a run on them in recent weeks. We dug through old scrap piles and found a couple that we were able to clean-up so that I could at least have a few to get started replacing. This is insane that the DOI/BIA imposed this deadline on us and giving us five weeks notice to achieve the impossible. They are idiots and down right vindictive SOB's.
While I was in the supply store, I was approached by a pumper for another Osage County operator who advised me that he was being terminated by his company due to these CFR's. I will not disclose the name of the oil company, but it is one who has been operating in the Osage for decades. He said that the company he works for cannot meet the bonding requirement and will have to abandon his wells as I am having to do if the bonding requirement is not eased. I am complying with the minor issues but will not be able to meet the bonding requirements. This pumper is losing his employment next week and his employer is going out of business due to the DOI/BIA revenge.
Sad story and there are many more operators and oilfield workers in the same situation. This is a real-life tragedy and no one seems to give a care.
I have pleaded with the readers of this blog to contribute to the Osage Producers Association's defense fund but my plea has fallen on deaf ears. Most of the readers of this blog are not familiar with the plight of the producers and I've tried my best to describe the issues and hardships imposed on the producers. Galen Crum, Ray McClain and their followers comment here occasionally saying that this is nothing but propaganda. They should spend an hour or two at the supply stores and service companies.
This situation is very serious and the Shareholders either do not care or they just hide their heads under their pillows hoping the OMC will take care of them. Good luck with that!. How's that been working out?
I'm leaving the blog and will check back in a few quarters to see if the Shareholders have anything to say when their checks are a third of what they are now. I do not depend on my Shareholder check and usually cash it and give the funds to my two granddaughters for extra spending money. Unfortunately, for some Shareholders, they depend on their quarterly checks for necessities. I wish they would get involved to prevent this demise.
A stay has been issued and in effect by the Federal Court in Tulsa with a hearing postponement until August 10, 2015. To download the Court's Minute Order for postponement of today's hearing see https://www.facebook.com/groups/234024393278360/ So, KEEP YOUR CHIN UP. IT'S NOT OVER BY A LONG SHOT!
So your a Osage Producers, and bless you for all the hardships that's been brought on to you. Let's help out these small oilmen by keeping a eye out, where ever shareholders may reside, for those gofer items like valves. Post a list of what your looking for, and "Who's among us" shows all around the world, anything can be found. Logistics will set free more time for you the small producer to complete the job that you was put in the Osage County to do, drain it dry. I will always remember my late brother telling the story of a scrap iron dealer that got the contract to tear down some of those old pump stations in the Osage ,not be know to us that they all had huge engines 12 to 18 cylinders Wabash, Superiors worth a small fortune. Don't think it's quite the right time to scrap those leases hang on "the Shareholders are a coming". H
All right, Homer! Glad to see you're on board. The internet is a gold mine for equipment purchases too and some at a good discount with free mailing available as well depending on the merchant.
HERE IT IS! The Osage Producers Association is going to Federal Court in Tulsa! See the article, "Facing new regulations, Osage oil producers to file suit against Bureau of Indian Affairs" at http://www.tulsaworld.com/business/energy/facing-new-regulations-osage-oil-producers-to-file-suit-against/article_c647d594-0656-5ee2-986f-d3fd2649b025.html
We are hearing that two more filings are anticipated to be filed in Federal Court today and are working to confirm this information right now. We will let you know when we have more on this developing situation.
We have a confirmation of the second filing in Federal Court in Tulsa: The State of Oklahoma represented by Scott Pruitt, Attorney General and the Oklahoma Department of Environmental Quality versus 1) Gina McCarthy, Administrator of the U.S. Environmental Protection Agency and 2) The U.S. Environmental Protection Agency.
To support the Osage Producers in their fight to survive you can send a donation to the Osage Defense Fund, a 501 (c) (3) non-profit organization. Make checks payable to the “Osage Defense Fund and mail to Osage Defense Fund c/o Osage Producers Association, P.O. Box 635, Hominy, OK 74035
Hold on Oil and Gas Producers! We are riding in to the rescue. If the U.S. Government Regulatory Agencies want a legal range war in the Osage, they've got it because we will join the FIGHT! Good for all of you who are going to Federal Court to stand up against all these regulations that will destroy Osage County. I am SO PROUD of all of you!
Second confirmation: Filed in Federal Court in Tulsa: United States District Court for the Northern District of Oklahoma. Osage Producers Association versus Sally Jewell and Mike Black, Department of the Interior, Bureau of Indian Affairs.
Yes, I believe it is. I don't know if the State of Oklahoma is going to file a separate action against the new CFRs or not. They may leave that up to other interested parties.
Confirmation of the 3rd filing in the United States District Court for the Northern District of Oklahoma: Osage Minerals Council versus Sally Jewell and Mike Black, The Department of the Interior and the Bureau of Indian Affairs. Case # CV 371.
It is my understanding that the Attorney General's lawsuit against the EPA is unrelated to our issues. Hopefully, he will file suit against the BIA soon.
@6:20 "What took so long ong for the Osage Council to file?" As any attorney or court will tell you, you cannot bring suit until you have been harmed. The OMC, as well as the producers, could not file any case until the rules implementation had been set.
The timeline is simply a function of the procedure of law.
At point 31 on page 4 of the filing of OPA vs BIA and BLM, it states: "Under § 226.52(B), when the Superintendent makes unilateral decisions that an oil and gas lease is terminated for cause, with no requirement of support or evidence supporting a claim of termination, the Osage Nation is allowed to 'take immediate possession of the lease premises and all permanent improvements and all other equipment necessary for the operation of the lease.' 80 Fed. Reg., at 27,030 (§ 226.53(B))."
Has the BIA been working in collusion with the Osage Nation government to force producers out of business and illegally take their assets in order to directly operate the leases? Is that why ONES LLC was formed and how it intends to operate without sufficient investment of working capital necessary to buy the equipment and produce oil? There's something rotten about the regulations.
Paragraph 81 of the lawsuit is incorrect. It claims the Osage Nation is harmed, when it is in fact the shareholders. As an outcome of these regulations, the Osage Nation could actually benefit due to acquisition of assets by ONES without any investment. This could generate revenue for a business entity of the Osage Nation, even if the outcome for the shareholders isn't desirable. As someone said on the OFFR Facebook page, "Oh what a wicked web we weave when first we practice to deceive." To find out who benefits follow the money. It isn't the current producers and it isn't the shareholders.
Where the lawsuit by the Osage Producers Association is clear and makes solid arguments, the same cannot be said of the one brought by the OMC. Paragraph 1 clearly states the harm to the producers, but fails to demonstrate "irreparable harm the Osage Mineral Estate." In fact, if the Osage Nation takes over the lease premises and other assets as provided for by 25 CFR § 226.52(B) there would be no harm to the shareholders by the BIA -- unless the Osage Nation is incapable of operating the leases and the BIA permits incompetence to continue.
Furthermore, paragraph 11 includes a citation from the 1929 Act, which provides that “as to all lands hereafter leased, the regulations governing same…shall contain appropriate provisions for the conservation of the natural gas for its economic use, to the end that the highest percentage of ultimate recovery of both oil and gas may be secured.”
The BIA has a solid defense. Based on history of the settlement, it can claim and demonstrate that it is only acting with prudence to prevent future mismanagement and loss of royalties of the ME. Also, the new regulations are clearly designed to meet the "highest percentage of ultimate recovery" clause of the 1929 Act. Note that nowhere within the 1929 Act is there a requirement to achieve the highest profit, or even a profit at all. Achieving the "highest percentage of ultimate recovery" may actually result in an operating loss.
Pray that the OPA is successful because the OMC lawsuit is a crapshoot at best. I was going to question where they found the attorneys to work on this, but I see it is Fredericks Peebles & Morgan - the same firm that often "helped" the Osage LLC.
If lessees are abandoning their leases and collection of royalty is plummeting how does that not show harm to the shareholder? If rule and regulation are so burdensome as to unjustly harm any producer, thereby driving business out of the ME and rendering it virtually worthless doesn't that reasonably show harm to the ME? To me it does, but I concede I may be to close or overly familiar with our problems.
As for paragraph 11 that is under the statements of "Fact" and that is exactly what it is, a statement of fact. Whether it was written as best it should have been, that's the way it was written in 1929. I imagine it's inclusion is to demonstrate trust responsibility. I don't think we can quibble over how a trust responsibility was written 86 year ago. The fact is it's a trust responsibility however well or poor it was written.
OK, Thanks. Now...Just exactly what does the Osage Nation Energy Services, LLC do and how does it benefit the Nation or shareholders? Secondly....How much Nation money is spent for or by the ONES?
Earlier comments in line with the first comment bear more looking into. The whole CFR process had Sonny Abbott leading the pack from the beginning with Team Osage and Yates and Crum not far behind. Then we have this costly unnecessary primary election for the Chief and Asst. Chief that narrows things down to two candidates only. The two that come through to be elected in June of '12 are Standing Bear and Redcorn. The top contributor to Standing Bears campaign was Sonny Abbott and the word is out that Abbott wanted new Mineral Council member Waller to have a job in the Chief's office, I guess, sos he could keep tabs on the Chief for Abbott to make sure his money was being well spent. Then Waller loses his job due to political pressure that came down on the Chief for handing out jobs in his office as political paybacks. Then Waller switches sides with his vote to go with the four voting against the new CFRs and the other regulations. Galen went running off to the Chief to get on the EIS panel or whatever its called and then all hell breaks loose June 5, with little over a month before the new CFRs into effect on July 10 with the BIA held producer meetings looking like a smackdown on the producers. Galen was running back and forth to help the honchos on the panel during the big meetings answer questions they should have had the answers to before they ever came out of Washington. Eddie Red Eagle got up and put the blast on the Osage Agency gal, Robin, by telling her she can't make these CFRs work because she doesn't have the staff and manpower to do it. Then she shows up in braids on the last day looking like Gretel without Hansel and no bread crumbs in sight other than Galen. Shes not been attending the Mineral Council meetings lately and has been sending in an assistant.
Meanwhile the Chief finds out months ago about this Ute company that is coming in to drill and instead of knuckling down and doing what he can in solidarity to openly and publicly support and help the Mineral Council by press releases to get through all this when the new CFRs were published in the Federal Register on May 11, during this critical time, he goes running off on a rainbow tour of the Southwest looking like he's taking advantage of the situation to ram in his agenda coming back like he's the Second Coming declaring that he's going to now develop oil and gas on the Mineral Estate with the ONES, LLC when any development of the Mineral Estate is the clear territory of the Mineral Council by way of the Constitution. He doesn't seem to see or doesn't care that everyone is upset by what he's doing even though everyone has been warned on many occasions about his 1938 Indian Reorganization Act agenda to set up a big Osage Nation minerals department and regulatory division that has to be paid for with what money to fund it coming from where that can only go forward if the Secretary of the Interior and the BIA are no longer in there in the same manner as they have been in the past as the direct managing trustee and regulatory agency administrator of the Trust. Then the Mineral Council, minus the votes of both Crum and Yates despite the fact that these two should be able to see by now that things are spiraling wildly out of control with these new CFRs and a ton of other regulations the BIA is starting to roll out, vote to sue the BIA and the Chief stands down even though he could put in a legal action for an injunction on behalf of the Osage Nation as well because the Constitution says that the Mineral rights are reserved to the Osage Nation giving him the ability to do it. If he fails to run to Court on Monday and the Federal court denies the injunction because everyone isn't there who should be, Standing Bear, like Chief Gray, who lost the Federal reservation recognition in Federal Court, risks losing a sizable portion of mineral estate oil and gas production and whatever negative affects it will have on the whole of Osage County. He may well be be the Chief who will bear the brunt of the judgement of history branded as the one who destroyed the productivity of the Osage Mineral Estate for the Shareholders. They don't talk about the Osage Congress losing the reservation even though most of them in office at the time voted to fund the lawsuit. The one history now holds responsible for it is Jim Gray. Are we looking at a conspiracy or just one single man's agenda to take over the ME while Chief of the Osage Nation? I don't know but there's a lot there to mull over in all this and think about very carefully.
Right I agree with you even though I was not the one who posted the comment on who is ONES and what do they do? Could you some it up even better? The lack of support from the Chief is any wonder, he's not geeting any from this SHAREHOLDER..but I want to know why this person is asking?
One thing I've learned the hard way about this de facto government is how much is claimed to be fictitious from a speculative perspective which has a tendency to turn into cold hard fact.
The timeline is a bit askew on the Chief's activities: http://osagenews.org/en/article/2015/05/01/standing-bear-plans-change-game-oil-production-osage-county/ http://osagenews.org/en/article/2015/06/02/standing-bear-administration-plans-to-develop-oil-and-gas/ https://www.osagenation-nsn.gov/who-we-are/energy-services-llc-board
A very interesting development...OMC Court Hearing Cancelled: New Date to be Set at Later Date at http://www.osagenation-nsn.gov/news-events/news/omc-court-hearing-cancelled-new-date-be-set-later-date
I have been asking myself, how does these regulations apply to a land that is not federal owned, but holds the trust? The Osage purchased these lands..what gives? The only answer that I can come up with is, Once again at the administrative level the BIA fails on a huge magnatude for several reasons, one is exactly right how can anyone come to a different opinon as to the impact without a economic analysis? And what is even worse at this point what is the future? And now defamation can be in the Billions worse discrimination because we are not like any other tribe gone unrecognized our uniqueness has all these agencies studied. Would they not be?
You need to rally the Shareholders. They have been silent for decades. They do not visit this blog (with a couple of exceptions) so you should obtain a mailing list, if possible. The Mineral Council works against you, not for you. You're pretty much on your own in this regard. Good luck!
I beg to differ. The Shareholders do come in and visit this Blog. I get the online statistics report daily. They may not post comments but they are there and come in every day to see what's going on.
@8:24 If I remember correctly, use of a mailing list is not technically legal. The mailing list for shareholders is kept by the BIA. It is only released to candidates for the OMC after they sign a waiver stating they will only use it for personal campaign literature or some such nonsense. As I remember, use of the list for any other purpose is punishable by law. That aside the list doesn't have current addresses for many shareholders. If a shareholder gets their check via direct deposit the BIA does not feel it needs to keep a current address for that shareholder. Someone feel free to correct me if I'm wrong about this.
I will grant you that recent previous councils have done nothing to benefit the shareholders, however, with regard to the current council it is my opinion they have worked pretty hard for the shareholders, with the obvious exceptions of Yates and Crumb, who's allegiance seems to be to the Nation and the BIA. I think those two have done nothing but torpedo the shareholder at every possible turn.
They have consulted with and expressed their dislike and frustration with final CFRs, the CFR process, the BIAs handling of the Donelson/Drummand EIS/EA demand, sought proper accounting and payment for the highway 60 project, and taken ENEL to court over infringement of tribal property rights, all on numerous occasions. With the exception of the substantive, although as of yet undetermined, action on ENEL all their concerns have been ignored or rebuffed. Ignored to the point the Superintendent will no longer attend council meetings. They have passed resolutions stating their opposition to the CFRs and stating their lack of confidence in the Superintendent. They have defeated MOUs the BIA and the Nation wish them to take part in that would further set the shareholders back. Finally, as the time has become proper, they have brought suit against Dept of Interior and BIA regarding the CFRs.
All this while fighting the Nation suing them, an Osage paper that seems to only report on shareholders matters when they have to, and dealing with two member of the council (Yates and Crumb) who I bet would love to do nothing more than run and tell the Nation and the BIA every action the OMC plans to take.
What is it that they should be doing that they aren't? If it's reasonable and prudent perhaps we can bring pressure for them to act in other areas.
Thank you! Now that's a pretty damn fair assessment of what the Council has done for all of us. I get sick of all the disinformation bashing that goes on against the MC because they have been in the trenches for years, fighting off one party after another on our behalf since this new government took over that has had them in their teeth shaking them back and forth like a rag doll from the very beginning. The lack of respect for them even with the protections of the Constitution that are nearly spat on in contempt by everyone including Yates and Crum outside the Minerals Agency are such a blight on the reputation of our new Nation that it calls them all into question. It's no longer a matter of just disparate elements in the Nation who are involved in this ongoing battle against the Minerals Council. If the majority elements and elected officials of Osage Nation can be seen to be responsible for bringing the whole of Osage County to its knees, we need to think about a vote for a new government. The agenda of this one is too established and too dangerous for it to continue to run things for the Osage people.
They would not be in tbe trenches had the MC stayed in the know, like I said everyone has an excuse, what I'm not hereing solutions and nothing ia an accident, most of this battle is self inflicted to a degree...accountability still however you look at it, it reflects and sometimes not in the ones best interests. This is just another day in Paradise and there will be adversity at times, this is all in a days work...This is where we are at not 20 years ahead of ourselves. Thank you for the update was appreciated, people who are successful just see things a littlt more clearly..Now what I want to hear from Is Galens opinion has it changed?
Dr. Joe Conner is having an Osage Prayer Sunrise Service on the 8th in the middle of the Osage wind farm. Meet at highway 60 and the turnoff at highway 18 to Burbank at 6 a.m.
ATTENTION! Osage Minerals Council AND Osage Producers Association Hearing in Federal Court IS WEDNESDAY JULY 8, 3:00 PM, Federal Court House, Downtown Tulsa! Please Be There To Support these efforts!
Osage Minerals Council AND Osage Producers Association Hearing in Federal Court IS WEDNESDAY JULY 8, 3:00 PM, Court Room #1, 333 West 4th Street (4th & Denver), Tulsa, OK
The Judge needs to see all of the seats filled! He's more inclined to grant the injunction if he thinks there is a lot of interest from the Shareholders and producers.
Whether a court is packed or empty should make no difference on the ruling. If any judge makes decisions based on popular support instead of a rational basis in law and equity, then he needs to be removed from the judiciary.
I agree with both of you. Imagine that! Even in a court of law, the squeaky wheel gets the grease and yes the decision should be based in law and equity.
I previously posted a blog that suggested that the Shareholders do not follow this blog and you replied that I was wrong and stated that you have a log demonstrating that there are a significant number of Shareholders that visit this site and for whatever reason do not post to it. I was pleased to learn of this.
Now, that you have verified that a large number of Shareholders follow this site, you must have the ability to contact them. I would be very interested to know the results of a poll that you could post tonight inquiring as to how many of the Shareholders viewing this site will be present at Wednesday's hearing.
You can expect a significant number of producers in attendance. Please share with us how many Shareholders will be attending. I do not no the number of Shareholders but think the number is in excess of 10,0000. How many will be there?
If we have 10,000 Shareholders and ten percent attended, that would equate to 1,000 Shareholders at the courthouse Wednesday. I guess we'll see how many give a care on Wednesday.
I attended the first and last DOI/BIA meetings in Pawhuska where the Feds read us the "right act"; they advised us that they are the Feds and we're imposing our will upon you and you just need to accept the punishment. This is who we are and this is what your going to do for now on and in retaliation for the $380,000,000 settlement. Unfortunately, we are succumbing to their punishment. We deserve what we get if we don't fight back. No more royalty checks. Hopefully the bingo casino and tobacco businesses do well.
From my personal experience having attended two of the meetings, we had only three Osage Shareholders address the arrogant committee and standing up for the Shareholders. No kidding, only three Shareholders out of ten thousand or more. Where the hell are you folks? Do you not care what is happening to you? Are your quarterly checks so low now that it doesn't effect you any more? You surely don't think that the Mineral Council is taking care of you and your interest. If you do, God help you!
First there are around 5000 shareholders some are minors and if you knew this there is only one percent of Osages live in Osage County..the reason back in the 1930's most Indians left the Osage Reservation for t b e Military such as there was no work..then you couple with the fact that there is no communication with the Shareholders by the Council or Nation..no accident there. Yet when there is a settlement the DOI can get a hold of you..
Sorry. Big housekeeping day today with laundry and shopping included. To clarify, the statistics indicate the number of individuals who visit the site per web page on a daily basis. It does not include the IP addresses which are retained by Google that is the company that makes this blog venue available. Even if the IP addresses were listed it wouldn't give out the names of those who are assigned to each IP address. Only the individual Internet Service Providers have that information and it is privacy protected. That aside, we have had 21 separate web pages dedicated to Shareholder Matters since this blog was started roughly two years ago. This Google blog does not offer polls as part of its functionality. You will have to pursue such a company that offers this product on your own and do the work yourself gratis for the Shareholders to set one up like we do in making this blog site available. We do what we can and encourage others to offer other online features that we don't offer here. We do make anonymous posting available on the Osage Blog that is not always available on other web site bulletin boards and blogs in the cyberspace marketplace. Best of luck on the poll idea that is a brilliant one and when you make it available, you are more than welcome to come back and post the URL to it here for the benefit of the Shareholders.
I am very surprised to learn that there are only 5,000 total Shareholders, that's barely two Shareholders per headright; I would have expected the distribution or lineage of the headright to be much greater. As to the fact that only one percent of the Shareholders reside in Osage County is insignificant. The non-Osage residents are suffering the same fate as the locals. It doesn't matter where they live, as they could travel for such an important matter and could also voice their opinions by writing letters and even making a small financial contribution to organizations such as the Producers Association Defense Fund mentioned in earlier posts. They should have flooded the Osage Mineral Council's office with correspondence voicing their opinion as to what they would like their representatives to do on their behalf. The OMC has finally filed their lawsuit; however, if they had more pressure from the Shareholders, maybe the OMC would have been more pro-active earlier in the fight; although, better late than never. I was very disappointed that the OMC did not take to the floor during the DOI/BIA instructional meetings and stand up to the members of the panel as did Mr. Red Eagle, Jr. and a couple of Osage Shareholders, all of whom received standing ovations from the Osage producers in attendance.
I'm sure glad you know peoples financial situations some of are on a strict budget..writing a letter would at this point do no good...especially when you don't have trust for your Tribe..we would not be in this predicament had there been people with great management skills...
Some clarifications regarding headright holders and number of shares:
~ 2229 original shares ~ Approximately 1/3 or 743 shares are owned by non-Osages i.e., Churches, Corporations, Lawyers and persons of non-Indian blood. ~ Approximately 2/3 or 1486 shares are owned by Osages. ~ There are some number of shares owned by individuals who belong to other tribes though I don't know or have forgotten that number. ~ As of the last election their were, I think, 4006 shareholders eligible to vote. ~ Depending on the day and who is reporting it there are 16,000 to 18,000 enrolled Osages.
The OMC has no support from the Osage Nation, many of the Nation's constituents or the Osage News that the Nation publishes. Beyond quiet contempt, or whatever they feel, the Nation actively pursues at seemingly every turn another opportunity to subjugate, make irrelevant the OMC or sue council members into financial ruin. Many in the Nation have voiced their support for the new CFRs, though they seemed to have gone quiet here of late.
It seems, for whatever short sighted, hare-brained reason the Nation wishes to be in the oil business. They haven't made any greater return off the casino than the first day it opened. They've poured millions into failed business ventures which haven't panned out. They built a casinos incurring a 1/3 cost overrun without batting an eye. Currently they can't even grown any corn in their community garden or whatever it is. Yet they think they have the expertize to enter one of the most complicated business on earth. ...I digress.
Sorry if this is disjointed it was written over several hours will working on other things.
I would suggest in addition to pressuring the minerals council people should be pressuring the Osage nation to quit fighting and trying to take over the mineral estate with their MOUs and lawsuits. Let the shareholders deal with the minerals, the nation can go play government and lose more money at something else.
That was music to my ears! Someone out there REALLY sees things for what they are and how its been and evidently always will be. I've said many times that the Shareholders better take ownership of their assets and get ahold of this situation. Excellent Job to poster at 9:44 AM.
Rauk Friend, as I recall, didn't you offer polls with your web site a number of years ago when Kent Radcliff's OSA Blog was active and on the internet?
" As to the fact that only one percent of the Shareholders reside in Osage County is insignificant." While I agree with you 100% in sentiment, I think, in fact it is very significant. Many (not all, but many) of the Osage expats are only mildly engaged in tribal affairs and when they are they turn, as naturally anyone would, to the chief and his representatives. And I don't think he is on the side of the shareholders. But he has the title and again, as most people would do, they are going to trust the title before anything said by a blog, group, or even the OMC.
Nonsense. They trust blogs and FB pages and message board and they have for years. These venues speak truth to power a lot of the time and don't think they don't and don't for a second think the Osage Shareholders and Osage Members don't know it because they do.
Osage News has an article too -->> http://osagenews.org/en/article/2015/07/06/osage-minerals-council-suing-department-interior-over-new-regulations/ Docket for Chief Judge Frizzell: TOMORROW, Wednesday, July 8th, 2015! 3:00pm -- 15-cv-367-GKF-PJC Consolidated Osage Producers Asso, et al vs US Dept. of Interior, et al Mot. for TRO Hrg.
What I would like to know what does Abbott, Crum, Yates and John McClain why he has not printed his opinion on what is going on at this point with the Law Suits and the outcome they hope for? Has their opinions changed?
I believe the name is Ray McClain and it's not very likely. Ray does valuable work in publishing information about what is going on with the Minerals Estate but he is firmly and absolutely entrenched as being for the new CFRs. He has made that clearly known on other web sites as well. http://www.osages-you-need-to-know.com
In my opinion those guys are vested in the Nation. They only care about what the Nation thinks is good for the Nation and, I think, the Nation would like nothing more than to see the producers leave under some pie in the sky delusional assumption that they can somehow, via TERO or something, step in and become THE oil producer in the Osage.
Someone needs to CALL and QUICK like a little bunny, OST Head, Vince Logan, Osage, and let him know how well "Trust Reform" is going for the Headright owners and the Osage Mineral Estate before he testifies before the Senate Indian Affairs Committee tomorrow afternoon! See http://www.indianz.com/News/2015/018087.asp and http://www.indianz.com/News/2015/018081.asp
"Some tribes objected to the inclusion of their lands in the fracking rule, which was finalized by the Bureau of Land Management in March and was accompanied by a 395-page explanation document."
ReplyDeletehttp://www.indianz.com/News/2015/017877.asp
GALEN!!!!!!!!!!!
Yeah Galen. You said the BLM Rules wouldn't be involved directly but I sure noticed that it was written in the BIA Super's letter to all the oil and gas producers, plain as day, as adherence to BLM Onshore Order 5. So who's full of hot air and gas here? You or the members of the Minerals Council who stand against all of your artful dodgering?
DeleteThis is a BLM rule so we are automatically exempt. However since the possibility that someone like the EPA might adopt a mirror version that would rope us in, we sent people to Washington a couple of years ago to testify at hearings for tribal input on the proposed fracking rule. There were several things in that version that we particularly didn’t like but none of them made it into the final version.
DeleteAlso, the BIA recently came out with an in depth study that pretty much debunks any widespread connection between fracking and ground water contamination.
To the second poster, I’ve never made a secrete of the fact, and have explained it many times that two BLM onshore orders were included in the revised CFR 25 226 as BIA adopted standards for the installation of gas meters, measuring gas for MM/btu quality and the proper maintenance and oversight of the equipment. And the other lays out the requirements for the safe handling of wells that produce H2S gas. These onshore orders are only adopted as industry standard guidelines and convey no regulatory authority to the BLM over the Osage. Any more than adopting the American Petroleum Institute (API) standards over oil measurement or the National Electric Code (NEC) standards on electric installation gives those organizations regulatory power.
At this stage of the game I am forced to conclude that anyone that does not understand these simple facts either has not read the new rules, have read them but are unable to understand what they say, or are purposely trying to deceive.
Correction, the recent ground water/ fracking study was of course conducted by the EPA, not the BIA. It's late and I must be having acronym overload.
DeleteThank you Galen. Well said..to the Nay Sayers. Can't argue with logic.
DeleteGalen can you answer this question, Is tge BIA going to give the producers a grace period? I know reslity is a matter of perception, but in you opinion why do some of the Producers feel as I coin, A tug a war going on with the BIA?
DeleteBecause the federal law governing the rule making process states very clearly that the new rule goes into effect July 10th the BIA is very reluctant to use the term “grace period”. However they have stated over and over again that if a producer communicates with them a legitimate reason why they can’t comply and a plan to remedy the situation they will grant them the time needed to carry out their plan. At one of the training sessions Eddie Streeter (regional director) stated “that nothing would make the BIA happier than to bring everyone into compliance without issuing one fine or penalty”.
DeleteIn fact fines help no one, compliance does, and neither the BIA nor the MC gets to keep the money.
Andrew and I introduced a resolution in last weeks MC meeting that would encourage the BIA to declare a formal, blanket 90 day grace period from issuing fines. We know the BIA is concerned about the MC suing them at some future point about loosing tens of thousands of dollars each month from added royalty the new rule will generate if they act too slowly in getting it into place. We felt that a request from the MC to grant the extra time might alleviate the BIA’s concerns, but the measure failed.
Thank you for answering to my reply Galen Crum, you are a Oak. My faith in you has never waned, keep up the good work. Happy Father's day.
DeletePretty magnanimous of you, Galen, to vote for a grace period when your vote in April, 2013 created the problem by voting for the CFR's. Your vote, along with Andrew's and Sonny's, was in spite of the OMC voting 5-3 against the new regs. A grace period for your handiwork. Really. Most shareholders have a lot better memory than you think, Galen!
DeleteAnonymous 6-22 @9:15am.
DeleteI believe you just like to make trouble and will never believe the truth no matter what. Galen, more people believe you other than these trouble matters.
I'm a shareholder that don't trust Galen. But we need our MC to come together for all of us. Just watch what's going on!
DeleteTo the blogger @11:04AM, how am I making trouble when, as a shareholder and producer, I am having to comply with the new regs or be threatened with immense fines? The fear of having leases terminated and loss of one's livelihood is real. If you aren't walking in my shoes, then you have no right to criticize my viewpoint. Myself and other small producers are really panicked. Listening to the BIA at the "instructional" sessions, it is very obvious they don't know or don't care about the consequences of the new regs. Scary indeed.
DeleteIt is the Law..why are you so panicked? As Galen said the BIA wants everyone compliant and will work with you if you state your crises and is valid...can't go wrong there. And as I have said the regs. was in the makes before the HPP CASE settled. It is as much as the BIA failure to capture and enforce as it is to the Producer to be compliant. Over three Years to come to Industry Standard, and It is baloney when I hear we had no warning of this? Hog wash..All of us Knew that the valves were going to mandated to be changed..everyone is entitled to have their opinion and I respect what you are saying, not one producer who has posted on this site has argued the fact that this was not expected. I also said way back when, if you were listening this will affect the smaller producer's in the long run. And the monopoly needs to end. That being said...why can't we help the smaller producer's in a different way...everyone needs to picket the BIA and take a stand..I do think that since some producers are not financially equipped to handle this type of change...after all we want whats best for everyone. Though I still agree with Galen, Yates and Abbott.
DeleteWhat industry standard are you talking about? BLM Onshore Rules apply to public lands that are managed by the Federal government, not privately owned land like in all of Osage County. What you refuse to understand, not fail to understand mind you, is that the cost of doing business per well has gone from a single $5,000 bond costing $250-$500 per lease of 160 acres no matter how many wells drilled, to $5,250 per every well drilled up to 25. For a single well drilled the cost of doing business is 10 times higher. For twenty-five drilled the cost is 262.5 times higher.
DeleteThe payment to the landowner has gone from $300 for every well drilled to $2,500 for every single well drilled. The cost of doing business is 8.33 times higher for every well drilled.
The reason that 60% of the producers are drilling in the Osage is because it has been less expensive to do business here and has attracted a host of small to mid-sized producers who are currently bringing 60% of the oil and gas out of the ground on which royalties are now being paid to the shareholders. If they have to leave because they can no longer afford the cost of doing business in Osage County, along with them goes 60% of the royalties being paid and distributed in the quarterly headright checks. With oil now down roughly 50% from where it was a year ago, can you also afford to lose another 60% on top of that? Try and think. I can't afford that and most of the shareholders I know can't either.
The new CFRs were not in the makes before the HPP case settled because the CFRs NegReg committee didn't exist prior to the settlement agreement being signed because it was the settlement agreement that created it. Get your facts straight, please. There's enough confusion around this new versus old CFRs issue as it is.
Thank you 11:25AM for your in put. Some folks just don't know how ugly this is. There were some of the MC that tried to keep all this from happing but the MC are not all on the same page.
DeleteBLM onshore orders apply to all allotted, Tribal, and federal leases nationwide. A Tribe may choose to enforce standards higher than the BLM standard, but not less than the standard. The surface ownership does not matter. Split estate lands, even if the bottom hole is 2 miles from the surface hole, are still subject to onshore orders and NEPA compliance. Mr Crum has indicated that only a couple of the onshore orders have been selected to enforce in Osage County.
DeleteFor those with questions about ONNR I suggest going to one of their training sessions. You won't get answers from the Agency bcs they don't know. The Agency has done a pitiful job at explaining NEPA, the difference btw an EIS and an EA, etc.
To the blogger @ 10:26AM, you state that the BIA will work with the operators, according to Galen. Obviously you have not been a producer trying to comply with the current regulations, much less the new regulations coming down the pike. The HPP lawsuit was about accounting issues and yet, the BIA, in typical government overreach, has expanded the mandate to rewrite rules on bonding, valves, tank fees, commencement monies for starters. The BIA has not been working with anybody. Otherwise there would be more than 10 wells drilled in the last year and fines, "not to exceed $500", would not be automatically $500 regardless of the severity of the offense. I'd love to see Galen, Sonny and Andrew drive off in their clown car into the sunset because the new regs are truly a laughable piece of legislation.
DeleteYou say "These onshore orders are only adopted as industry standard guidelines and convey no regulatory authority to the BLM over the Osage." and "At this stage of the game I am forced to conclude that anyone that does not understand these simple facts either has not read the new rules, have read them but are unable to understand what they say, or are purposely trying to deceive." You must exhibit all 3 of the above because the New CFR clearly states CFR 226.3 (2) Adopt onshore oil and gas orders, NTLs (which is exclusively a BLM procedure) or related oil and gas regulations issued by the Bureau of Land Management. THIS IS AN OPEN DOOR FOR THE SUPT. TO IMPLEMENT BLM IN THE OSAGE AT ANY TIME AND WHENEVER SHE WANTS TO AND THERE IS NOTHING THAT THE OMC CAN DO ABOUT IT BECAUSE IT WAS GUTTED BY THE NEW CFR AND LOSS OF POWER OCCURS NUMEROUS TIMES. These changes were NEVER discussed at the NEG REG Meetings and were all added AFTER it went to DC. NOW WHO DIDN'T READ OR UNDERSTAND THE NEW CFR??? At least you can admit that this train wreck was of YOUR making and that the THREE of YOU voted against the Direct Resolution of the OMC to NOT send these premature CFR's to DC exhibiting your total ignorance of the repercussions for the Osage. You never spoke up at the Training when BIA was implementing the 48 hour tank setting, you never even spoke up when the BIA REFUSED to allow BONDS to be STACKED AFTER you told Producer's that they would be allowed to do it! At least other OMC members have spoken up for the Producers. How can you tell other Shareholders that there are only TWO VALVES that have to be replaced when the BIA provided a diagram revealing numerous valves??? At the very least, STOP patronizing the people who's lives are forever changed in the room and seeing what their parents, grandparents, and themselves have worked all of their lives to build only to see the BIA regulate them out of existence and you telling them that everything is going to be OK...FOR WHO???
DeleteReally, Sonny, Galen and Andrew, this a perfect question. FOR WHOM?
DeleteBUREAU OF INDIAN AFFAIRS
ReplyDeletePUBLIC INFORMATIONAL SESSIONS
LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING
25 CFR Part 226
The Bureau of Indian Affairs (BIA) invites the public to attend informational sessions on the new oil and gas mining regulations for the Osage Mineral Estate that were published in the Federal Register on May 11, 2015. The new regulations will become effective on July 10, 2015.
The Public Information Sessions will be held at the Wah-Zha-Zhi Cultural Center located at 1449 W. Main, Pawhuska, OK 74056, at the following times:
June 23, 2015 5:00 pm - 9:00 pm
June 24 2015 1:00 pm - 5:00 pm
June 25,2015 10:30 am - 2:30 pm
The new regulations may be found at:
www.gpo.gov
GPO.GOV
Any reports from the meeting this evening?
DeleteTHE LAST Training was yesterday... The On the Street News, one person pointed out that the Coffee Shop name for it was "The Bend Over and Take It Training!" The common thread throughout all of the "Trainings" was: Write a letter and tell the Supt. that you can't meet the TWO MONTH Deadline to suddenly BOND every well for $5,000 EACH when you were Bonding 1-7 for that and 8 and more for $10,000! (When there is ONLY one Bonding Company that will still write Bonds in the Osage it is literally Take it of Leave it and good luck getting it done by July 10!) That was brought about because the BIA refuses to release Bonds once a NEW Producer takes over a Lease with THEIR OWN BOND. One man pointed out yesterday that his brother has one that the BIA has not released in FOUR YEARS after it was sold. ILLEGAL??? That is like double insurance but more importantly a total disregard for common business practice. (AND NOT IMPROVED WITH THE NEW SUPT EITHER!) Replace all of the MILES of Reda Cable in the Osage that powers the pump jacks in less than 2 weeks and as long as it is intact I was told by one Producer that HE would run it through the bathwater of his precious grandbaby. BUT NO LONGER ALLOWED. Just WHO is going to go inspect 1 MILLION 444 THOUSAND Acres of land in the Osage when the BIA can't even gauge 15 tanks per month with 12 Petroleum Engineer Techs (PET)??? Replace the valves on the tanks that will NOT stop the theft of anything since at least 2 people pointed out that they are not required on 2 of the leading ways to steal oil, through the Thief Hatch (DUH?) and the salt water tanks where 50% of the oil is stolen in the State of OK. Congratulations another rule made by people who HAVE NO KNOWLEDGE of the Industry and refusing to accept input from those who KNOW. Have a Site Security Plan in place that no one at the BIA even had a clue what was to be in it? These are just a sample of what cannot be accomplished with the Snap of the Finger and the whim of the QUEEN... OFF WITH THEIR HEADS!!! FIRST MEETING it was REQUIRED that the Producer call in the fact that his oil was ready to be picked up to the Supt. HE was NOT ALLOWED to notify the Purchaser to pick it up, however for 48 hours to allow the BIA time to go find it and gauge it!!! (This was presented as if it were part of the new CFR in the Power Point and the handouts YET IT WAS NOT!) Chaparral pointed out that they had TWO Burbank tank batteries that SOLD 5 loads EACH per day (about 1,800 BARRELS PER DAY) and THEY wanted them to shut them down for 48 hours??? CO2 Flood loses the "charge" if they have a power failure and loses hundreds of barrels for DAYS when that happens, imagine shutting them in???
DeleteThe exodus has begun!
ReplyDeleteBiddick, Biddick & Revard (BBR Corporation) just wrote a letter to their gas purchaser, Scissortail, stating that BBR Corp. is cancelling its gas contracts and requested the removal of their gas meters on all their gas leases.
The letter reads as follows:
"Please be advised that BBR Oil Corporation will not be selling any gas in Osage County after July 11, 2015. You may remove the following meters at your convenience:
Meter Station Meter Name Legal Description
81-118 N Pawhuska 23, 24-26N-9E
81-119 Maze 1, 2 12-26N-8E
81-120 Dome Lease 12-26N-8E
81-123 Osage 1A 16-27N-10E
81-124 Maze 5, 9 1-26N-8E
BBR Oil Corporation is not able to spend the time to learn the new reporting system and does not want to be responsible for accounting to the BIA for volumes, price, royalty, BTU, etc. on our marginally economic wells in Osage County. Paying someone else to do that accounting would make producing our gas uneconomic.
For that reason, our two remaining producing leases, Maze and N. Pawhuska will be shut in on July 31, 2015 and there will be no future sales into ScissorTail meters".
End of letter.
Many more producers will be making the same decision soon. It's not feasible or economical to comply with the CFR's. The DOI/BIA is accomplishing their intended results. No more oil and gas operations in Osage County. Good bye quarterly checks!
Tip of the iceburg? A third generation Osage County operator wrote this letter to his gas purchaser and he is sending a copy to BIA today.
DeleteBiddick, Biddick & Revard (BBR) have drilled hundreds of wells in Osage County over the past 60 years. Lloyd Biddick, Bud Biddick and George E. Revard (an Osage) founded the company 60 years ago and their children currently operate it. They are leaving the Osage for good, I am sad to say, for all the reasons that we have been warned about with these new burdensome CFRs. BBR Corporation was responsible for bringing Phillips Petroleum's gas gathering system to the Osage in the 1950's. It is now owned by Kinder-Morgan.
BBR simply cannot continue to operate their wells at a loss after July 11, 2015. They cannot afford to wait on what the OMC or the Nation are planning to do to fix this mess.
Interesting that an Osage founded and owned business is one of the first casualties.
DeleteThinking the same thing to.
DeleteVery Sad!
DeleteAfter 60 years of drilling risks and contributions made to the Shareholders, BBR Corp. is taking their capital elsewhere. Who would blame them? The Osages should stand up for the producers and Shareholders and take immediate action to prevent the implementation of the new CFR's, EA's and beetle bugs.
The Osage Agency better staff-up to process thousands of plugging permit applications. Most of the small operators will be exiting the county, abandoning their wells without the funds to plug them. Is the BIA going to fund the plugging of these wells?. Who will be monitoring the abandoned wells after the producers leave? I would think the surface owners are going to be in for a real surprise soon. Leaking wells and tanks. Very dangerous wellhead pressures, no more road maintenance, etc.
OMG!!!!!!!!!!!!!!!
DeleteThis is a tragedy, plain and simple.
DeleteAs an Osage County producer, I am interested to know what the Shareholders think about the current situation concerning their mineral estate. What do you hear from the council members you elected. Are they keeping you advised of the issues and what their plans are to address them?
ReplyDeleteHave you communicated with the Osage producers offering them any support? Are you individually taking action against the BIA to stop the implementation of the devastating CFR's, EA's, etc.?
We producers would like to hear from you. Are your quarterly checks so low now that it doesn't matter any more?
I am working this problem as furiously as I know how, probably more so than with any problem I've had to deal with other than fighting for my dear Mother's life when she had Rocky Mountain Fever in 2002, two bouts of C-Diff that nearly took her life, not once but twice in 2006 and 2007 respectively, and pneumonia earlier this year in February. I am on it as fast as I can go. Hold on, I am on your side in this thing am doing everything I can to work with everyone I can think of to turn it back and save what we have left right now. PLEASE don't file to go out of business until we can get our trenches dug out and and manned appropriately. I am on the phone, I am on the internet, I am up all night, I am with you. Just hold on...
DeleteBigheart Times article: http://barnsdalltimes.com/http:/barnsdalltimes.com/news/council-vows-to-fight-oil-rules
DeleteTo PROTEST this Bureau of Indian Affairs (BIA) arbitrary compliance requirement without a grace period for the Oil and Gas Producers in Osage County:
ReplyDeleteContact the Oklahoma Delegation if you live in the State of Oklahoma at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ok
Contact the California Delegation if you live in the State of California at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ca
Contact the New Mexico Delegation if you live in the State of New Mexico at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=nm
Contact the Texas Delegation if you live in the State of Texas at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=tx
Contact the Arizona Delegation if you live in the State of Arizona at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=az
Contact the Colorado Delegation if you live in the State of Colorado at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=co
Contact the Kansas Delegation if you live in the State of Kansas at http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=ks
To PROTEST the new CFR compliance requirements without a grace period after July 10, 2015, for the oil and gas producers, contact Sally Jewell at http://www.doi.gov/public/contact-us.cfm
To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Kevin Washburn, Assistant Secretary of Indian Affairs at http://www.indianaffairs.gov/ContactUs/index.htm
To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Eddie Streater, Acting Regional Director at http://www.bia.gov/WhoWeAre/RegionalOffices/EasternOklahoma/index.htm
To PROTEST the new CFR compliance requirements without a grace period for the oil and gas producers, contact Robin Phillips, Superintendent, Osage Agency at http://www.bia.gov/WhoWeAre/RegionalOffices/EasternOklahoma/WeAre/Osage/index.htm
Information on U.S. Government Committees of the House and Senate:
U.S. House of Representatives;
Subcommittee on Oversight and Investigations and Members (The Subcommittee on Oversight and Investigations will pursue aggressive oversight of the Obama Administration[Executive Branch] and federal agencies, programs and policies within the Committee's jurisdiction.):
http://naturalresources.house.gov/subcommittees/subcommittee/?SubcommitteeID=5064
The Subcommittee on Indian, Insular and Alaska Native Affairs and Members:
http://naturalresources.house.gov/subcommittees/subcommittee/?SubcommitteeID=5066
Committee on Natural Resources Contact Information:
https://naturalresources.house.gov/contact/
The U.S. Senate;
http://www.indian.senate.gov/
The Senate Committee on Indian Affairs and Members:
http://www.indian.senate.gov/about/committee-members
Contact Information:
http://www.indian.senate.gov/contact
Suggested Form Letter -- Part 1
DeleteName
Address
Dear (To Whom it May Concern):
I am (Name) and I have a matter of the utmost importance to bring to your immediate attention.
As of June 5, 2015 with a letter written to all of the oil and gas producers in Osage County, Oklahoma by Bureau of Indian Affairs, Osage Agency Superintendent Robin Phillips, a new Code of Federal Regulations will become effective on July 10, 2015. I am writing to you to make you fully aware of the harmful and potentially devastating effects these new CFRs will have if and when they go into effect, upon the small to medium oil and gas producers and their businesses, the businesses in Osage County that will feel the loss of the income and the loss of royalty income generated and paid to the Headright owners who benefit from the Federally administrated and managed Osage Mineral Estate Trust by the Secretary of the Interior and the Bureau of Indian Affairs.
To begin, Osage County has approximately 14,000 wells producing 12,000 barrels per day or less than a barrel a day per well. Most of the wells in production are referred to as stripper wells. 60% of the oil and gas business in the county is handled by small oil producers who cannot afford the increases in business costs demanded by these new CFRs. In addition, the lead time from June 5th to July 10th is only a matter of 35 days to become compliant; a shockingly short lead time to be certain, causing such a terrible hardship that many may have to go to the extreme limit of abandoning their wells to avoid the fines for violations that will go into effect on July 10, 2015.
Please consider these communications that have appeared on the online Osage Blog at
http://osageblog.blogspot.com/2015/05/osage-shareholder-matters-may-2015.html
and
http://osageblog.blogspot.com/2015/06/osage-shareholder-matters-june-2015.html
and
http://osageblog.blogspot.com/2015/06/osage-shareholder-matters-june-ii-2015.html
Suggested Form Letter -- Part 2
Delete“As an Osage County oil and gas producer, I received a letter from the Superintendent dated June 5, 2015 advising all producers that we need to be incompliance with the new CFR’s on or before July 10, 2015; she threatened us with fines and penalties if we have not met the requirements by that date.
I am not able to meet the requirements by the deadline and possibly might not ever be able to do so. I have spoken with several other producers who are also not going to be able to comply. Five weeks’ notice to make the changes to our leases and to come up with the cash required for the additional bonding requirements is unachievable for a significant number of us.
In Galen Crum’s press release, he misrepresented the facts concerning the bonds. It is true that the premium amount for the bond is minimal (approx. $250.00/year); however, for me to obtain the bond from my insurance company, my bank has to issue a letter-of-credit in the amount of the bond ($5,000.00) which is then pledged to the insurance company issuing the bond. My bank also requires that I establish a certificate of deposit in the same amount to be used as collateral for the letter-of-credit. In other words, each bond will cost me $5,250.00 cash. Most of us small producers cannot afford to bond several dozen wells each within this time frame and maybe never be able to do so.
The cost to make the valve changes on each of our batteries is also very expensive and even if we had the extra funds to comply (which I don’t), we could not get the work performed on all our tank batteries prior to the July 10, 2015 deadline. A typical two-tank battery will require replacement of seven valves. Even if a supply store had in-stock the thousands of valves necessary to accommodate all of Osage County, the roustabout companies which have survived could not service all of our properties prior to the deadline.
The producers are not going to be able to comply to the new CFR’s for these reasons and many more.
If the Superintendent follows through with her threat to fine and penalize us effective July 11, 2015, we’re doomed. I anticipate thousands of wells will soon be abandoned in Osage County with many of the producers facing the possibility of filing for bankruptcy protection, myself included, to be sure. I wish the Shareholders good luck. I am also a Shareholder who is very saddened by the current situation.”
“Some Osage County producers are shutting down and preparing to abandon their wells and leases due to the fact that it is not possible for them to comply with all of the new requirements between now and the July 10, 2015 deadline. What supply store has tens of thousands of the new valves in inventory this day and age. How can the few roustabout companies and vacuum trucks left in Osage County manage to perform the necessary work on all of the tank batteries in Osage County within this time frame? What bonding company is willing to and able to issue tens of millions of dollars of surety bonds within these next few weeks? It's not possible. The Feds are imposing regulations that a very few large oil and gas companies can comply with. The majority number of producers in Osage County are small entities with very limited resources especially now with the low price for oil and gas production. They are considered "poor-boy" operators trying to survive in a very bad climate.”
Suggested Form Letter -- Part 3
Delete“I anticipate that several thousand wells will very soon be abandoned. Who's going to check on the wells every day to make sure they are not leaking or sabotaged? The producers might be upset enough to damage the wellbores prior to abandonment so that the Feds can't utilize them. Any new potential buyer will have to be very cautious. There may be unemployed pumpers and contractors, employees, etc. that may get an attitude and find a creative way to exit the leases for the last time. I'm not promoting this but I am familiar with some of these folks and wouldn't be surprised. They might drop junk in the wellbore that would be non-recoverable. Millions of dollars of equipment will start disappearing. The County Sheriff will be very busy. With no field employee over-sight, it will be a cake-walk for the thieves even in broad daylight. If the producers are smart, they will strip their leases of equipment prior to exiting.
The plugging liability will probably first be placed on the Lessee who will be out of business and long gone. I would think that since the mineral estate is held in trust by the Department of the Interior, they should be responsible for plugging the wells using the original $5,000.00 bond funds now in place for each lease and then using US tax payers' funds for the millions of dollars of plugging expense. Also remember, an Osage County operator may not plug a well without BIA approval for which a producer cannot obtain now without an environmental impact study which may take another year or two. Since the wells are capable of production, the application Form 139 for plugging should not be approved by the Superintendent.
If the Osage Nation offered the new leases to another operator, the new lessee/owner would probably expect assurance from the Osage Nation that the wellbore(s) have integrity. Good luck with that!
During the Fed's evaluation (The Bureau of Indian Affairs) of the new CFR's, do you think they considered the above repercussions? They should have.”
"After 60 years of drilling risks and contributions made to the Shareholders, BBR Corp. is taking their capital elsewhere. Who would blame them? The Osages should stand up for the producers and Shareholders and take immediate action to prevent the implementation of the new CFR's, EA's and beetle bugs.
The Osage Agency better staff-up to process thousands of plugging permit applications. Most of the small operators will be exiting the county, abandoning their wells without the funds to plug them. Is the BIA going to fund the plugging of these wells?. Who will be monitoring the abandoned wells after the producers leave? I would think the surface owners are going to be in for a real surprise soon. Leaking wells and tanks. Very dangerous wellhead pressures, no more road maintenance, etc."
If 60% of the mid to small oil and gas producer’s businesses fail and 50% of the businesses in Osage County are oil and gas related, this will be economically devastating to the largest county in the State of Oklahoma.
Please be aware of this catastrophe about to take place beginning on July 10, 2015 and do what you can on an immediate basis to turn it back as soon as possible.
Thank you for your immediate attention to this all-important matter.
Sincerely,
(Name)
Good luck with writing to the US Federal Government.
DeleteAt the first instructional meeting they emphasized in a very adversarial voice and very condescending voice that the CFR's are final and we need to comply by July 10th. They said that the CFR's will not be amended or changed and that we better prepare for the deadline.
I have something to say back to them during the next couple of weeks. Good Bye!
DeleteGood luck trying to re-enter my abandoned wells!. I hope the BIA has the funding immediately available to plug all my wells, I don't have the funds to do so and wouldn't invest the funds if I had the funds. I'll take my capital to another area; start over under a different entity like all the other operators I have been visiting with. Good luck to the surface owners with the mess the BIA caused. Keep the kids and pets far away from the wells and equipment. It will be very dangerous, to be certain. See ya, bye bye!
Guess ,no one will mine if I add these form letters to the Non-Osage Shareholders Blog ? Great grandfather, A.W. Comstock had 500,000 acres leased in a stenographers name, for the Uncle Sam Oil Co. but the Standard Oil Company had political pull and plenty of money, which won out in the end. Chief Bacon Rind and a good number council members were replaced by Standards choices. Homer Fincannon or H
DeleteHomer, this isn't helpful. Put on your thinking cap and help us try and come up with some solutions to remedy this situation.
DeleteTreating the predominantly non-Indian oil and gas producers like Indians may prove to have some surprising and unexpected results. We'll see.
DeleteSend in your money T O D A Y!
DeleteOsage Defense Fund
c/o Osage Producers Association
P.O. Box 635
Hominy, OK 74035
D A N G !!!!!!!!!!!!!!!!
ReplyDeleteI think the situation calls for a little stronger language than that John, but God love you for not going there.
DeleteLol. OSAGEBLOGGER, just wanted to say thank you for your dedication for the Truth and all your hard work does not go unnoticed with this Osage. What a mess.
DeleteThank you! I really appreciate your words of encouragement. We have to keep fighting for a good government for the Osages and a good financial situation for our oil and gas producers and the Headright Shareholders, now and in the future.
DeleteTribes should be allowed to decide for themselves whether regulations governing their lands are necessary, to protect tribal lands "It is not appropriate for the United States to determine for tribes what is in their best interests by setting forth one federal rule after another, in retrospect to the CFR's. We determine what works for us not the other way around? That is our inherent Sovereign right? Is this not argument enough?
ReplyDeleteJust talking in general terms. Not that there shouldn't be a standard.
DeleteThe Federal Government does not care what is in the best interest of our Tribe. They are intentionally punishing our Tribe for the $380,000,000.00 settlement. Also, the current administration's goal is to abolish the use of fossil fuels; this is an easy step forward for the arrogant narcissist in office. Our current OMC is not qualified to manage the Mineral Estate either. The Shareholders need to recall half of the Council Members and put in place a board of qualified experienced managers. I recommend hiring retired former directors and officers of major oil companies or large independent oil companies.
DeleteI think the Tribe should file another lawsuit against the DOI/BIA for the current damage they are inflicting on the Mineral Estate and its Shareholders.
I suggest we all march in front of the Superintendent's office in the presence of the press and have our Tribal law enforcement officers remove the Superintendent and her staff from the premises.
What you suggest, by way of removal, unless they are Osage Headright owners is ON Constitutionally untenable according to Article XV. I can't advocate for removing the BIA Agency Superintendant or her staff, but peaceful protest has always been the way forward against oppression in the USA. I say go for it. Schedule it and we will be here to promote it and get the word out to every corner, nook and cranny that we can. Annette Gore, 99 years young, is ready to hop in the car and come across the country at the drop of a hat to join this effort. We have a voice in this matter and we have every right as U.S. Citizens and Osage Nation Members to use our voices to say NO! THIS WON'T HAPPEN IN OSAGE COUNTY! THIS WON'T HAPPEN TO OUR OSAGE PEOPLE, TO OUR OIL AND GAS PRODUCERS, TO OUR SHAREHOLDERS AND TO THE RESIDENTS OF OSAGE COUNTY WHO WILL COME TO SUFFER AS A RESULT OF THE LOSS OF INCOME AND THE DESTRUCTION THAT IT WILL CAUSE TO EVERONE AT HOME AND TO HEADRIGHT OWNERS ALL OVER THE COUNTRY. Let's do this and STAND UNITED AGAINST ALL THESE ECONOMICALLY DESTRUCTIVE FEDERAL REGULATIONS THAT APPEAR TO BE ROBBING US OF THE OPPORTUNITY OF BEING ABLE TO REMOVE THE LAST OF THE OIL AND GAS STILL AVAILABLE IN THE MINERAL ESTATE IN OSAGE COUNTY. We must take on the responsibility of protecting ourselves BEFORE these regulations go into effect on July 10, 2015 by peacefully protesting against all these economically oppressive and destructive Federal regulations.
DeleteThe last meeting to explain the new CFRs with at least 8 BIA personnel (Superintendent and her boss and his boss plus solicitor's office) in attendance is tomorrow at Cultural Center in Pawhuska 10:30am. Large Producer attendance expected. It would be nice to have a large contingent of OSAGE Headright owners present to support our Producers. Maybe even get up to speak and ask questions. Please come! We can prepare some question here for you to take. First Question: Did the BIA personnel conducting the Negotiated Rulemaking consider the Economic Impact to the Shareholders, Producers and the Osage Co. Economy when rewriting the CFRs? The answer of course will be "no" so then you could ask them to confirm that this blunder has caused an avalanche of "unintended consequences" with continued financial harm to the Osage Shareholders. Second question: Since the Old CFRs were not enforced, how is the Osage Agency going to staff up to enforce the new rules, give detailed information on how many old and new staff will be responsible for each and every one of the new rules. Third Question: How many measurement specialists will the Osage Agency have on hand to witness meter inspections and will they be certified as fully trained witnesses and how many meters will they start witnessing per week to insure the meters are properly calibrated and samples are taken according to industry standard? At minimum that is twice per year for every gas meter. Fourth Question: How many gas meters are currently measuring natural gas in Osage Co? (if they can't answer that one then ask how they intend to be prepared to enforce their own new rules?)
DeleteJust start reading what is new and improved in our new CFRs. It won't take long to come up with more questions.
I wish I could attend..I hope a Shareholder will post the latest update with these very important questions? Thank you and Good Luck!
DeleteHow did the final meeting go?
DeleteDone!
DeleteThis is an IMPORTANT SURVEY for the Osage Nation Members. Please take the time to fill it out and send it in online right away:
ReplyDeletehttps://www.osagenation-nsn.gov/what-we-do/elections/survey-2016
Thank you. I would have not known if it was not for you...wow a serious survey...I took it.
DeleteYou're welcome. I'm glad you took the time to take the survey. I hope others follow your example. It's important.
DeleteTo the Osage Shareholders: Part One of Two
ReplyDeleteWith all due respect please take the time to read the following comments:
I am an Osage Shareholder and also an Osage County producer. I am a third generation Osage Producer responsible for hundreds of wells having been drilled in Osage County. I have benefitted at times with much success and more times than not been set back with failures. In other words, I’ve drilled a lot of dry holes. I spent the same amount of time and capital whether the result was successful or a failure.
The Osage County producers can drill in other states and other counties within Oklahoma. The ones that chose to drill in Osage did so thinking they could explore a relatively low risk area and have the opportunity to make a decent return on their investment. Some producers have been more successful than others; some due to luck and some due to experience and wise choices.
In counties outside of Osage, the mineral owners who are often times the surface owners welcome an oil and gas operator to take the risk of drilling on their land. Many times in my career, I have made the mineral owners wealthy by having drilled on their land. I’ve had school teachers that commuted 200 miles per day be able to retire at ages 30 years old or so and never have to work another day of their lives. Needless to say, we were a blessing to them and they treated us like family.
In the Osage, things are very different. We are treated as if we are adversaries preying on the Osage people. The surface owners usually own no mineral rights and therefore we are a nuisance to them. The Osage Tribal Council and the Shareholders act as if we are opportunist wanting to take advantage of them. When we have issues seeking the Mineral Council’s support, we confront them with our knees shacking and hoping for their favorable decision as to what ever issues we need resolved. We’re at their mercy.
Part Two of Two:
DeleteOsage County is considered “poor boy” country. The average oil well is less than one barrel per day. We have to cut every corner we can to scrape a profit. We do not have the profits that allow us to have the most modern equipment, nice gravel roads, etc. When one of our wells needs work, we have to wait a while to sell another tank or two of oil before we can fix the well.
As difficult as it is in other counties of Oklahoma and other states to operate, there is no place more burdensome to do so than in Osage County, Oklahoma.
Now that the Tribe has allowed the EPA and BIA to impose their new rules and regulations upon the producers, it’s like having the last nail hammered into the coffin. I’m not bitching about a few extra hoops to jump through or over; I’m just saying that oil and gas exploration and production in the Osage will be coming to an end.
It’s especially sad for me as a very proud third generation Osage county producer. I am more proud that I am an Osage Indian. My Great Grandfather served 33 years on the Tribal Council and was the first US Deputy Marshall in Indian Territory. He went to Washington many times under a few different presidential administrations and was also an interpreter for the Tribe. He would be so disappointed to see what we have let happen to our heritage and Mineral Estate.
I will soon be abandoning my Osage County wells, forming a new entity and continuing my career in areas that are friendlier. I’ll be drilling wells on the folk’s land that will have me over for dinner and who will be asking when I might be drilling my next well on their place saying “hopefully soon”.
Our current Council Members think that when we leave, others will be lined up to take our place. Not this time. Things are very different. Ask the almighty Superintendent a couple of straight forward questions. How many wells have been drilled during the past six months? How many re-completions have been attempted during the past six months? I am more interested to know how many new operators have entered the county recently. I bet the answer will be zero.
The producers asked for Shareholder support for their legal defense fund. I am so disappointed in the Shareholders. How many are there of us? Maybe 10,000 or even 15,000? Guess how many Shareholders responded as of yesterday? Two letters of support and five financial contributions, which were appreciated very much. I’m not kidding! I can’t believe my fellow Shareholders are so indifferent and uncaring. Shame on us. Really? If we won’t help our partners in their efforts to survive, we desire the same fate (death) they are experiencing.
Oh well!
As a Shareholder, I’m ashamed. As an oil and gas operator, I’m transferring assets, changing my name and moving elsewhere to places that are friendly and just as profitable as the Osage once was. I emphasize “once”.
Good bye and God Bless our Osage families.
Ante up before we haven't anything left but an economically dead County. Get out your checkbooks and send them some money to help stop this insanity taking place by the BIA. What has to happen to you before you start to act like you understand what is taking place and what will be left of our home if you don't. You can't afford not to help out now so be generous or you may never have another chance again. Send in your money right now to the address shown above for the Osage Defense Fund. I sent in my contribution. Now you send in yours.
DeleteThe best reason to invest is that it works!
DeleteA federal judge in Wyoming issued an injunction last night to block the implementation of the Interior Department’s fracking regulations on federal land, meaning that they will not go into effect today as planned.
"Judge blocks BLM Federal fracking rule" -- http://thehill.com/policy/energy-environment/245933-judge-blocks-federal-fracking-rule?wpisrc=nl_daily202&wpmm=1
This article is worth reading every word.
I am a small producer (small enough I do wellsite consulting work in other places to pay my bills) and I am hoping to actually acquire some Osage production in the next few months. Is it the CFR changes that have got you pulling up stakes from Osage County, or is it all the issues related to the Donelson lawsuit and the lag time waiting for county-wide EA to get finished? The good folks at the Osage Agency have assured me that workover permits will start being issued in the next several days, and the county-wide EA should be finished around October-November so the drilling permit process will be regularized. It is worth noting that Performance performed their own EA, submitted several drilling permits and had them approved. Last count, they had drilled and completed at least 12 wells so far. If it is the CFR changes that you have found to be so burdensome that you can't continue to operate, would you share with us which particular rules have the most impact?
DeleteI'm certainly not trying to be adversarial, I'm just wondering if I am missing something big here that I need to be aware of before finalizing a pending transaction to purchase some more production. I know the bonding issue has a lot of folks upset. My banker has told me he will write me a letter of credit for $125,000 to cover the 25 well bond cap. It won't be free, it will cost me $2500/year, but it is worth it to me. I'm currently paying a bonding agency already, so the cost increase isn't tremendous. I attended the meeting Tuesday night, and I thought the site security provisions were explained fairly well. The valves of interest just have to be sealable: this doesn't have to be a locking valve, just one on which a seal can be placed to indicate if the valve has been opened. All the seals and breaks have to be logged, and that's certainly not convenient, but not so burdensome as to not be tolerable. Twice annual calibration of gas meters is a new provision, but other companies I've worked with have internal policies to calibrate meters either quarterly or semi-annually.
I'm not an Osage nor am I a shareholder, so please excuse me if I am not supposed to post here.
Small producer, if the property you are acquiring has electric installations, the new regs could cost you serious money. Don't believe the staff at the Osage Agency; there are no new re-entries until the EA, Beetle bug, etc. have been satisfied. Do you have the staff necessary to comply with the new accounting and reporting system? Are you OK with paying an extra amount for the royalty oil than what you receive? We're all leaving and the reasons are too numerous to discuss here. Good luck! If you have investors, there may be legal exposure due to putting their funds into an acquisition that is doomed to fail. Why do you think we're all leaving? I suggest you talk with the producers and not the BIA! Just saying!
DeleteTo 7:31 AM---I am really getting sick of all this rabble-rousing some of you are doing. The poster at 6:39 above is apparently interested in acquiring production in the Osage. That would help us Shareholders. He got his bonding in order, and obviously has reviewed the new cfrs and finds nothing that he can't deal with. I suggest you sell him your leases and get the hell out if you don't want to play by the rules.
DeleteTo the Producer soon to produce in Osage County. I to am coming to Osage County to drill...I produce and work with a company that is self regulated above and beyond approach. We have learned in this Industry.self reliance works..We perform our own EA's before during and after and confer with the Landowners from time to time to stay in good standing,.basically the Regulations are not so overboard or an overreach..by the Federal Government. We as a company have ran across many endangered species such as the Amercan burying beatle. I can make a profit and the Shareholder's will see their's to.
DeleteLooks like we can hear more good things here than we've ever heard out or our illustrious mineral council. Mr. Producer, if there's anything we Shareholders can do to help, I guess you'll have to post it on this blog. If something gets in your way, please let us know here.
DeleteOver the past few months,a hell of a lot of information has been shared concerning the OME.Good or bad,right or wrong,this has been the way of the Osage and the US government since the area known as Osage county became the center of the Osage People.That has been a long time and hopefully will continue until the end of time.We the Osage continue to live in a shared modern world,where anything is possible.We the Osage have way too many groups working on Osage matters and I see not much unity and if there is its just for show.Just maybe we the Osage can take the time to become re-united in all things as we were not many generations ago.
DeleteI am glad John Moncravie, that you have spoken up. The lack of Unity is for better or wosre a understatement. The division started over a 100 {rears} ago and most recent since we became a DeFacto Gov. But never so divided as we are today. This was not the intent in my belief or road that this Gov, has been so self serving..we were to take...A per-cap was to be distributed to the Constituency, has not happened, Money lost with many boards not being held accountable and the list goes on..sound familiar? Education funds only to realized elsewhere not here in Osage County...no work. Its time the Osage think about a Constitutional Convention and hit restart...it was much simpler when we were just the Osage Tribe.
DeleteBe we the Osage as traditional,cultural,or modern,we represent not only ourself,our family,but we represent the endless generations before us as We the People of the Osage.A Osage Constitutional Convention,Yes.Hitting a restart button,a very big NO.We the Osage,over these many past years have seen and lived many Osage Constitutions.This newer one is the only one,which has lasted longer that any other one,except for the 1881 Constitution.Tho the newer one,is a fast track and may look like a copy and paste document,it is just my humble opinion,it was a needed document which needed authority to be accepted by the US government without needing years of inter-tribe fighting of producing a sound Osage document.The foundations were built and today we continue to build those foundations.stronger.It may not look stronger but it is.Making something better is a lot better than changing something.many of Osage don't care for change and that is a proven fact.
Delete"getting sick of all this rabble-rousing some of you are doing." You call trying to save the economy of the largest County in Oklahoma rabble-rousing? How weird is that? Galen can escape across the border where he lives in Kansas. The rest of us can't. So where do you live that the destruction of so many businesses that will cause damage to so many lives as a result means nothing to you?
Delete@12:07, "Osage don't care for change and that is a proven fact." ~ So the answer was to cram "change" down their throats with little deliberative thought and as fast as possible? How interesting and in-fact un-Osage.
DeleteNot really any difference between they way the ill-conceived CFRs are being crammed down our throat or they way the no thought "cut and paste" constitution was crammed down our throat.
"Unity," I've gown weary of hearing the word. Unity is always fine as long as everyone is "uniting" behind the principals of the one espousing said unity.
"We need to unit behind the nation," "We need to unit behind the MC," "We need to unit around a prayer circle in the middle Bluestem lake." While some are at camp preaching unity and neo-ethnic hegemony by supplanting traditional values with pan-indian(ism) some of us have picked up our battle axe and run ahead fighting with our last breath. The time for good words and good feelings are over, pick up your axe and join the battle. I don't care what flank you attack on but for God sake, Attack! I promise, if we make it out this alive when we come back we can revisit the whole "unity" thing ...but right now there is a battle to fight.
Write a letters, call a congressman, object on record, donate to a cause, send pamphlets but do more than set idly by and talk about the importance of who ideas we need to unit behind.
If you think we're stupid enough to believe that you two producers are going to be coming in to do business, you can think again. Why weren't you there at the last lease sale? Are you waiting for the new CFRs to take effect? Or are you just one of the three stooges of the Osage trying to CYA with putting up comments here that are chock full of disinformation. Hahahahahahaha. No one is buying your line sucker.
DeleteTo the blogger @ 6:39AM who is interested in buying production and starting business in the County, yes, you are missing something. First, why don't you seek out some producers who have been here for a while and understand the effects that the new regs will have? Talk to the Osage Producers Association. If you still feel like this is your bag, go for it but I feel you don't have all of the facts. For instance, the new regs require the producer to pay royalty based on NYMEX but the producer generally gets the HPP. or about $3 less/barrel. Thus you will pay royalty on money you won't receive. Works out to about $200/barrel/year. Doesn't sound like a lot but it may be the difference between the ability to pull a well or not. Termination for non-production is now 120 days instead of 1 year. If you have problems, you may risk losing your lease. Still interested?
DeleteA new Special Session of the ON Congress has been called by the Chief. New legislation calls for another Boards and Commissions appropriation amendment is on the Agenda. The Osage Nation Energy Services, LLC is a Board and an appropriation of millions could be forthcoming. This Board needs to be under the umbrella of the Minerals Agency and Management of the Minerals Council if it has anything to do with the Osage Mineral Estate as per the Osage Nation Constitution, Article XV, Section 4, Paragraph 3. If the Chief tries an end-run around the Constitution on this issue with the ONES, LLC, we need to be prepared to file complaints to the AG against the Chief, Asst. Chief and any member of Congress who votes for this spending until the proper organization per the Osage Contitution has been established for the ONES. LLC. The legislation hasn't been released yet but when it is, we need to be on it. In addition, there are appropriation bills for direct services to the Osage people that have effective dates in October of 2015. Is this some sort of end-run too? If they have gone beyond the projected revenue prohibition in Article VI, Section 23, in fiscal year during 2015 until the Fall Budgeting Regular Session, then we also need to be prepared to file complaints against the members of the Osage Congress with the AG for having done so. We may have to file against the Chief and Asst. Chief too, to stop them from spending every dime we've got and more, especially since all Osage Nation revenue will likely spiral downward after the new CFRs are put place. This time we have to act and not sit back and wait for all this spending to continue. I don't think for a split second that the 2016 fiscal year projected revenue amount will actually be realized and come in anywhere near $43,775,000. This figure is questionably speculative at best and I would like to see an "official document" that lists all the actual revenue coming in on a monthly basis that the Osage Nation made for all of 2014 up to May of 2015.
ReplyDeleteI seriously concur...I said the involvement of the Ones and the Chief are barking up the wrong tree with a great conflict of interest..Sorry but thats the truth. One hot TallChief.
DeleteIs any part of the U.S. Department of the Interior without major management problems or not under some sort of cloud? Take a look at this web page from the Committee on Natural Resources: http://naturalresources.house.gov/oversight/ig/
ReplyDeleteWoah! "A Majority Staff Report, entitled “Holding the Interior Watchdog Accountable,” details mismanagement by Ms. Kendall while overseeing the IG (U.S. Department of the Interior Office of Inspector General). These include: not pursuing investigations involving political appointees or Administration priorities; informing senior Department officials of problems without conducting formal investigations and not issuing reports to Congress and the public; not adequately documenting the management of IG investigations and operations; serving in an appointed policy role in conflict with the IG’s investigative duties; preventing an investigator from seeking information from a White House official; and providing inaccurate and misleading information to Congress."..."The IG (Inspector General) is charged with being an independent watchdog for Congress. It’s completely unacceptable and inappropriate for the IG to be taking orders from the Department…especially about what information to withhold from Congress." I clicked on this page about killing coal mining and it's a wealth of knowlege too --->>> http://naturalresources.house.gov/news/documentsingle.aspx?DocumentID=373966 This looks like the path we're headed down beginning on July 10, 2015.
DeleteAnd you're surprised? Anyone with even half a brain fears retaliation by Obama's cronies. The IG is no exception.
DeleteSo, I guess what you're really saying is that when the Democrats are in office, the thugs get away with it but when the Republicans are in office and Scooter Libby "outed" CIA operative Valerie Plame Wilson, the wheels of Justice turn? What you're suggesting is a corruption so profound on the part of the current elected top official of the Executive Branch and his "cronies" as you put it, it reaches right into the heart of the Legislative Branch like a virulent cancer. Apparently, Plame's attorney agrees with you: "Melanie Sloan, one of the Wilsons' attorneys, said: "We are deeply disappointed that the Obama administration has failed to recognize the grievous harm top Bush White House officials inflicted on Joe and Valerie Wilson. The government’s position cannot be reconciled with President Obama's oft-stated commitment to once again make government officials accountable for their actions."
DeleteI posted earlier at 6:36 AM, and I figured I would respond to a few commenters. I am indeed planning on purchasing some producing leases in the Osage. I have spent a few years of my career working in Osage County, so I am well acquainted with a few producers and have some friends that work for some of the larger companies in the area. I have asked producers and members of their staff what they think of the new CFRs, and I've heard a range of comments from 'it's the end of the world' to 'it's not that big of a deal'. My experience has been that some (certainly not all) Osage producers have operated for years with very poor practices, taking advantage of the lack of regulations (and lack of enforcement of existing regulations).
ReplyDeleteIn my estimation, using NYMEX is a pricing index shows a lack of understanding as to how oil is sold, traded and priced--not to mention how the purchaser generally pays distributions--on the part of the individuals that wrote the new CFRs. It will certainly end up being a headache, but in terms of impact to a producers bottom line, I don't see it being a big deal. The change in the manner in which gas royalties will be collected is a bigger problem to me; consider the following scenario. A typical gas contract for an Osage County lease will pay 60% of the Oklahoma zone I index price for a month in which average daily gas production is less than or equal to 100 MMbtu. The new CFRs call for gas royalties to be paid on Oklahoma zone 1 pricing. For a lease with a 1/5 royalty that sells 100 MCF/d the producer will get paid for 80 MCF. The producer will be paid based on the 60% of the index price, but since the royalty must be paid on 100% of the index price, the producer must pay an incremental 40% of the royalty (since the purchaser will just pay 60% of the index price), which would end up essentially being an additional 8%. So the producer will end up getting paid (after royalty) for 40 MCF from every 100 MCF that is produced. This rule change again shows a fundamental lack of understanding of how gas is sold and transported. However, gas contracts have always been pretty lousy in the Osage, and I'm looking for oil and not gas anyway, so I can live with this rule change.
So far as termination of leases occurring after 120 days, I don't see a real problem here. Most leases outside of Osage County have either a 60 or 90 day cessation of production clause.
I don't know about anyone else's experience with oilfield electrical equipment in Osage County, but in my time working up there I have encountered cut-off boxes and pumping units that will shock you when you touch them and electrical lines on the surface that have bare conductors exposed. I think the requirement for production facilities to comply with the NEC is a response to poor practices that have been in place for years. I recall a lease I worked on that not only had REDA cable running on the ground (which seems to be acceptable to many Osage producers) but actually had it hanging from trees in several spots! Let's be realistic here: the BIA isn't going to have an electrical inspector go line item through every pole, fixture and piece of equipment on every lease and check for compliance with the NEC. The reality will be that if there are glaring problems evident to an Agency field tech making a visit to a lease, a producer is going to have a problem. However, this isn't a bad thing: bad electrical equipment can kill or seriously injure personnel working on equipment, not to mention kill livestock or start fires.
There's a lot of unsafe, environmentally hazardous junk around Osage County. For my part, I'm smart enough to evaluate what I'm buying and plan for the repairs and upgrades that may be necessary to bring a lease into compliance.
If you think you're smart enough to operate in Osage, who am I to dispute your claim. But to equate leases outside of Osage is folly. The 60-90 cessation provision allows for some sort of demonstration of work to hold the lease. Not the case in Osage. If you have not produced in 120 days, sayonara. Moreover, outside of Osage, you can hold your lease by spudding on the last day of the lease expiration. In Osage, the lease has to be producing by the end of the term or sayonara. You seem hell bent to operate. Go ahead. But 2 operators, one operating since 1933 and the other since 1940 have exited the County. You might want to know why.
DeleteIn any county outside of the Osage, you are allowed to perform maintenance on your wells if they go down for some reason. Consider a stuck pump due to scale. You bring in a rig spot some HCL maybe treat you formation, hang well on. No problem. However; in the Osage your pump gets stuck-your lease is terminated. Why? Because you are not allowed to perform maintenance on your well with out an EA and ABB study. Also, to treat your well, you need to submit a form 139 for BIA approval. The BIA will not approve your Form 139 until you have an EA and ABB study. These EA's are expected to be completed in the year 2017. Well goes down, you loose your lease and have to plug it!
DeleteTo the blogger @6:35PM, have you really done your homework? The new regs state that you are responsible for plugging and site restoration in perpetuity. In other word, if you buy a lease that has multiple wells, whether producing or not, and you later sell that lease with an approved assignment from the BIA, you are still on the hook for the plugging and site restoration along with the new owner. The gift that keeps on giving.
DeleteTo the new operators coming into Osage County: I'm being forced out of the county by the EPA and BIA with no support from the MC along with numerous other operators. If you have any plans to re-enter our wells that we cannot afford to plug they could be damaged beyond repair, if you know what I mean; you know how accidents happen from time to time. We cannot sell our leases because we no longer have good title as the title is clouded by the Donnelson-Friend lawsuit. Who would purchase our leases when they would not be allowed to re-complete the existing wells or drill new wells? You have a little more due diligence to perform.
ReplyDeletesounds like to me a plot for a good war story of domestic terrorism.possible IED's left from retreating operators.only in America.dang
DeleteJohn, we don't want to be concocting fantastic tales here. It's bad enough as is.
DeleteThe Minerals Council isn't going to stand up on a band box and announce to the world what they plan to do about what's going on. Osages are quiet people and don't ratchet up the noise level in dealing with whatever it is that they have to deal with. You've been around long enough to know that. Things don't change because of how serious it is. If anything, they keep even more of their own council. It's early days and it's not over yet. Keep your hats on and let's wait and see what happens.
DeleteHey wait and see! Really? Guess what smart ass? Our livelihoods are at stake here. I'm talking about survival, mortgages, tuition, helping elderly parents and grandkids, medical bills, etc.. This is not a hobby for those producers posting here. We're talking bankruptcy! I'm being forced out of business with my producer friends by these CFR's and abandoning 38 wells that I have my whole livelihood invested in. It's as if I put every dollar into the stock market and the market crashed. Don't tell us to wait for a change. The OMC is spineless and clueless. The Shareholders should scalp two of them and they know who they are and are proud of their obstruction. You must be drinking the Galen Crum & Andrew Yates coolaid. Really? Take a leap dumb ass!
DeleteListen. A lot of us are curled up in a ball over this situation, figuratively speaking, and we feel shock, the pain and the outrage for the producers just like you do. There is nothing right about this and don't think that it has doesn't have nearly everyone scrambling to stop this from happening to everyone working in the oil and gas business in Osage County. Plans have to be made and they have to be made quietly because, as you have pointed out, there are two on the Minerals Council who will be running back to you know who to expose them and make it a lot more difficult for a successful execution of the plan for it to work. No one is being flippant here and no one ever intended to be.
Delete"Another rider addresses hydraulic fracturing standards on federal and Indian lands. The rule goes into effect today but the bill would prevent the Bureau of Land Management from implementing it." See White House threatens veto of funding bill for Indian programs at http://www.indianz.com/News/2015/017952.asp
ReplyDeleteIt appears that if this bill is vetoed by Obama and the rider fails, then the new BLM rules will be going to effect retroactively as of June 24, 2015, effectively layering on a whole new layer of fracking rules in Osage County. I thought this was a done deal, Galen and now it looks like it's far from it, What do you have to say about this? The Minerals Council had better be prepared to include this situation too in whatever they plan to do about this third avalanche of government regulation along with the new CFRs and the NEPA requirements.
While you're at it, ask Sonny Abbott too. He was always the ring leader and I hear Kugee is in complete denial of what is going on right now. He seems to be going along with the Chief. Chief doesn't have a store like so many other Osages who have businesses which will be affected all over the County. Anybody who has an expensive house had better look out too. I've seen houses drop in my day with foreclosures taking the market down 40% to 50% depending on what kind of property it was and people with big loans and a small down payment who are probably still underwater. I'm also waiting for you to respond Galen. You all so had this sewn up, did you? Well, it looks like it's unravelling all over the place.
DeleteTo Osageblogger on June 27, 10:30 AM, this ‘rider’ refers to the BLM and FEDERAL INDIAN LANDS. The Osage Mineral Estate was bought and paid for by the Osages, along with the surface rights. Our predecessors sold most of the surface acreage, but the mineral rights were put into a Federal Trust, owned by the Osage Tribe,(now the Osage Nation), and for the benefit of decendents of the original allottees. If the individual surface allotments had each been put into Federal Trusts as well, we would still have it. THE OSAGE IS NOT FEDERAL INDIAN LANDS and THE BLM HAS NOTHING TO DO WITH THE OSAGE MINERAL ESTATE. Only the BIA has any jurisdiction in the Osage, and they are not mentioned in this ‘rider,’ therefore the new fracking rules, be they good or bad, will not impact the Osage whatsoever. Only the BIA can make operating rules here and fracking is addressed in the new cfrs.
Delete12:45 Have you READ the New CFR to become effective July 10, 2015? Allow me to enlighten you, the BLM is already here with 2 Onshore Orders, NTL (ALL BLM RULES) included AND there is a clause that says that the Supt. may bring in any and all BLM Rules at any time WITHOUT THE APPROVAL OR CONSENT of the OMC. The OMC has had a massive LOSS OF POWER and they are only allowed to now "advise" the Supt. who is in no way required to act on any of it! This was NOT agreed upon by the NEG REG Rulemaking Meetings BUT THERE IT IS! You think that it is only sour grapes from the Producers? What are the Shareholders going to do when their Osage Minerals Estate check goes to NOTHING? The asset is already severely de-valued from the $4 Billion that it was valued at before the approval of the new CFR. EA, EIS, and NEPA are all being enforced and the BIA is NOT the only one who has jurisdiction, a Producer was told at one of the meetings recently that he would have to get PERMISSION of the Fish and Wildlife, AND this was from the Environmental Officer of the BIA... now who do you think is running this show?
DeletePermission for what?
DeletePermission to re-work a well... or anything that involves the BUGS! Right now, you can't do a BUG study until May 15 when they "come out" and then they go back in Sept 15 so you can't do any work from Sept to May and only do studies May to Sept then WAIT 5 - 7 MONTHS to get the BIA to approve your Permit. Fish and Wildlife have NEVER had any authority in the Osage... until NOW!
DeleteAre there any bug studies in progress right now?
DeleteMy bet they will get off our land. And this is why...not to far form the apple that dropped off the tree. We were a Tribe before time right? They cannot come in here impose especially we bought the land, though it is in trust does not allow these reges because it is? And this is simple to our Sovereign.
DeleteStill as fresh as a breath of Osage hilltop air after a electric storm, the two short stories, one by maybe Chief Seattle and the other by H.
ReplyDeleteat TheTwoNativesCasino.com. A final chapter, was to be added before the the oil ran out in 2050, but because of unseen obstruction by the forces at hand , will have to post date a chapter. H
Our oil hasn't run out and will not any time soon; our fast reserves will remain in the ground because, as of July 10, 2015, it will be uneconomically feasible for our producers to extract it due the our Federal Government's revenge on the Osage Shareholders for the $380,000,000.00 settlement.
DeleteWhere are the Shareholders?
DeleteThey have not supported the Osage Producers Association in their attempt to fight the new CFR's. Five of the 10,000 to 15,000 Shareholders made a contribution to the defense fund. (.04%). The Shareholders apparently don't care about their headright payments or the sacrifices the producers have made. The Shareholders must not care about the lower royalty payments. With a couple of exceptions, they do not post to this blog which is named after them.
The producers are on their own. Many of the small producers, such as myself, will be forced out in a couple of weeks.
Too bad and so sad.
If anyone knows of another blog that the Shareholders read and post to, please post the site so that we producers can contact them. It is obvious they are not following this blog.
Any legal action that is taken by the Minerals Council is usually funded out of the million dollar drawdown that is available on an administrative basis yearly. If the entire drawdown isn't spent in a given year, it is returned to the Federal Trust account to be distributed to the shareholders. If the S510 account is earmarked; that is also available and can be put to use for the Shareholders if legal action is taken on their behalf. Many Osages feel they are already likely going to be paying for legal action out of either the drawdown or the S510 account that will be paid on their own legal behalf. There are quite a number of people who come in to take a look at the Osage Blog but don't necessarily post comments.
DeleteThe Shareholders have no leadership. The OMC has not shared their plans (if any) with the Shareholders. As a Shareholder, I have not received one bit of correspondence from the OMC as to the CFR's and the OMC's plans to deal with them.
DeleteEven if the OMC eventually takes legal action against the DOI/BIA, the Shareholders could also benefit from contributing to the Osage Producers Association's legal actions. It would be in our interest to do so.
This is a very serious situation. As a Shareholder, unfortunately, I have more faith in the Osage Producers than I do in our own Mineral Council.
I disagree. From my point of view, the MC has had way too much and too strong a macho "Team Osage" leadership in the recent past that has lead everyone concerned right off of the proverbial cliff. Fortunately, we now have three women of substance on the Council who can counter balance all that testosterone that has nearly lead to the ruination of the oil and gas business in Osage County. When these women say "Mum's the word." By God and all that I hold holy, "MUM'S THE WORD!" Everyone's got a right to their opinion and that includes mine.
DeleteAs for a contribution to the legal defense fund, I'm all for it because as you say, this situation is of the utmost seriousness and I believe that a two pronged attack on a fixed legal position is far better than just one. So get out your checkbooks people and be generous. This isn't just your quarterly check were dealing with anymore, this is the whole county that will be affected and that's us, our family and friends and our livelihoods. For those who live away, it's all of those back home who will suffer the losses directly and immediately and these are people we love and care very much about. Send in your contribution today. Nothing in your lifetime may be as important as this situation right here and now that we are facing today so bear that in mind while you're writing out that check.
Let me add to that one more thing. You have the opportunity right here and now to step up and take your place to be heroic for all who follow in your stead in the years to come. So BE HEROIC!
DeleteOne thing about the BIA. There have been enough comments flying around about this being the BIA's revenge on the Osages and the BIA should be aware of it by now. What surprises me is they have made no public attempt to deny it. That says a lot right there.
DeleteRight...as I said the hammer is going to hit the desk and come down hard on this Agency..I've noted this comes from the upper echelon. If the BIA ignores as they ignored as they have in the past but nothing will this time be lost in translation, sorta speak..
DeleteSupreme Court Ruling: http://www.cnn.com/2015/06/29/politics/supreme-court-epa-emissions/index.html
ReplyDeleteReading the article and not the ruling it sounds like agencies must now take into account the "economic impact" of the rules they issue. Can it be extrapolated that as of this ruling the ruinous CFRs may have to hit an automatic redo if someone brings the issue forward?
I should think so, so to your question, my answer is yes, Yes, YES! THANK YOU for finding and posting this article.
DeleteSupreme Court: EPA unreasonably interpreted the Clean Air Act. This is a landmark ruling that I believe will inform the behavior of all regulatory agencies where economic impact is concerned. High fives to the Supreme Court, The State of Michigan and the Coal Industry that has won a big victory today. The Obama administration needs to get out of the job termination business and set about honoring its job creation campaign promises and pledges. A big move in that direction is to stop promoting one pet energy sector to the detriment of all others that are needed economically on the ground for the American people and Native American Nations and Tribes everywhere. I am elated with this Supreme Court decision!
DeleteWhile I'm no attorney, it would seem, at the very least, enough to stay implementation on July 10 until such time as legal arguments can be heard.
DeleteOfficial Information on Michigan v. Environmental Protection Agency is located at http://www.scotusblog.com/case-files/cases/michigan-v-environmental-protection-agency/
DeleteWhere is the Osage News and the Bigheart Times on a huge thing like this? It's a good thing for this here Osage Blog or we wouldn't have any news that's up to the minute on the Mineral Estate for the Shareholders.
DeleteI read that earlier could not post...immediately. Isn't it great news in our favor..I wonder?
DeleteIt will be if it's legally used properly as having set a precedent to stop all these regulations coming in from one regulatory department, agency and bureau after another (without a prior economic impact analysis) that will surely kill the ME if they are allowed to go forward and become effective in Osage County.
DeleteAfter checking in on the 'Blog' a few times this month, I've noticed the "Gee the CFR's and being over regulated is good for Shareholders. They have been ripped off to long"! Where are these defenders from 3 months ago? I can just see Mid July's BIA Operations Report; 'Emergency Plugging ' 1 well, NO NEW WELLS DRILLED, 1 Hole dug by the ' American Burying Beetle' . Signed Jeannie Hale Acting Superintdent.
DeleteABB joke is funny. The Bigheart Times has an article in the recent edition on ABB Credits available from Conservation Banks that can be bought on an acre by acre basis.
DeleteWhere are we on this peaceful protest? Are we doing this or not? In addition, we can celebrate the Wyoming Federal Decision to grant an injunction against the new BLM Rules and the LANDMARK Supreme Court Decision on Michigan v. EPA! Just in the nick of time and it seems, by Divine Intervention. Thank you, God! I am delirious with JOY! Turn out to Save the Osage, Save Osage County, Save our Oil and Gas Producers and Save the Osage Mineral Estate RALLY! Why not hold it in the new Pawhuska Arbor on Sunday, July 5th, 2015?
ReplyDeleteI think the Rally should be on July 10, 2015, the effective date of the new CFR's. The Shareholders should demand that every Mineral Council member attend. The majors of every town in Osage County should attend as well as the Osage County officials. We should also ask the owners of retail stores, restaurants, service companies, etc. to attend, along with the producers and Shareholders.
DeleteThe press and television reporters should be invited as well.
Now you're talkin' !!! GOOD IDEAS! We need a coordinator to make the arrangements for a location. Wakon Iron was used before when the young people were protesting the changes to the Osage Nation Scholarship program. The Arbor may or may not be available as its predominant use is for the In-Lon-Schka that is a religious ceremony. Someone will have to call the 5 Man/Woman Board to see if the Pawhuska Arbor can be used for such a purpose and to make the arrangements for permission and a permit or whatever may be required to use it as the rally location. Let's get busy and get this scheduled and on the calendar. We will probably need to form an action committee to get the Rally on its feet. Let's also ask the Osage News for a free listing for the event when it's scheduled. Also, someone needs to get it listed in the local papers to include the Bigheart Times when the plans have been finalized. We need volunteers and you can send your names to the Osage Blog e-mail address at osage_election_news@comcast.net We don't have much time so let's get to work!
DeleteSad I cannot be there on that date and time...
DeleteA day in the life of an Osage County producer. Short story.
ReplyDeleteI am an Osage Shareholder and also an Osage County producer. I have posted numerous posts to this blog during the past couple of weeks. This post will be my last and I wish all Shareholders and producers good luck in the future.
I went to one of the oilfield supply stores to purchase more valves to meet the new CFR requirements. As expected, they are sold out as they do not carry an inventory of these locking valves and they have had a run on them in recent weeks. We dug through old scrap piles and found a couple that we were able to clean-up so that I could at least have a few to get started replacing. This is insane that the DOI/BIA imposed this deadline on us and giving us five weeks notice to achieve the impossible. They are idiots and down right vindictive SOB's.
While I was in the supply store, I was approached by a pumper for another Osage County operator who advised me that he was being terminated by his company due to these CFR's. I will not disclose the name of the oil company, but it is one who has been operating in the Osage for decades. He said that the company he works for cannot meet the bonding requirement and will have to abandon his wells as I am having to do if the bonding requirement is not eased. I am complying with the minor issues but will not be able to meet the bonding requirements. This pumper is losing his employment next week and his employer is going out of business due to the DOI/BIA revenge.
Sad story and there are many more operators and oilfield workers in the same situation. This is a real-life tragedy and no one seems to give a care.
I have pleaded with the readers of this blog to contribute to the Osage Producers Association's defense fund but my plea has fallen on deaf ears. Most of the readers of this blog are not familiar with the plight of the producers and I've tried my best to describe the issues and hardships imposed on the producers. Galen Crum, Ray McClain and their followers comment here occasionally saying that this is nothing but propaganda. They should spend an hour or two at the supply stores and service companies.
This situation is very serious and the Shareholders either do not care or they just hide their heads under their pillows hoping the OMC will take care of them. Good luck with that!. How's that been working out?
I'm leaving the blog and will check back in a few quarters to see if the Shareholders have anything to say when their checks are a third of what they are now. I do not depend on my Shareholder check and usually cash it and give the funds to my two granddaughters for extra spending money. Unfortunately, for some Shareholders, they depend on their quarterly checks for necessities. I wish they would get involved to prevent this demise.
God bless our Osage people.
A stay has been issued and in effect by the Federal Court in Tulsa with a hearing postponement until August 10, 2015. To download the Court's Minute Order for postponement of today's hearing see https://www.facebook.com/groups/234024393278360/ So, KEEP YOUR CHIN UP. IT'S NOT OVER BY A LONG SHOT!
DeleteSo your a Osage Producers, and bless you for all the hardships that's been brought on to you. Let's help out these small oilmen by keeping a eye out, where ever shareholders may reside, for those gofer items like valves. Post a list of what your looking for, and "Who's among us" shows all around the world, anything can be found. Logistics will set free more time for you the small producer to complete the job that you was put in the Osage County to do, drain it dry. I will always remember my late brother telling the story of a scrap iron dealer that got the contract to tear down some of those old pump stations in the Osage ,not be know to us that they all had huge engines 12 to 18 cylinders Wabash, Superiors worth a small fortune. Don't think it's quite the right time to scrap those leases hang on "the Shareholders are a coming". H
ReplyDeleteAll right, Homer! Glad to see you're on board. The internet is a gold mine for equipment purchases too and some at a good discount with free mailing available as well depending on the merchant.
DeleteHERE IT IS! The Osage Producers Association is going to Federal Court in Tulsa! See the article, "Facing new regulations, Osage oil producers to file suit against Bureau of Indian Affairs" at http://www.tulsaworld.com/business/energy/facing-new-regulations-osage-oil-producers-to-file-suit-against/article_c647d594-0656-5ee2-986f-d3fd2649b025.html
ReplyDeleteWe are hearing that two more filings are anticipated to be filed in Federal Court today and are working to confirm this information right now. We will let you know when we have more on this developing situation.
We have a confirmation of the second filing in Federal Court in Tulsa:
DeleteThe State of Oklahoma represented by Scott Pruitt, Attorney General and the Oklahoma Department of Environmental Quality versus 1) Gina McCarthy, Administrator of the U.S. Environmental Protection Agency and 2) The U.S. Environmental Protection Agency.
To support the Osage Producers in their fight to survive you can send a donation to the Osage Defense Fund, a 501 (c) (3) non-profit organization. Make checks payable to the “Osage Defense Fund and mail to Osage Defense Fund c/o Osage Producers Association, P.O. Box 635, Hominy, OK 74035
DeleteThank you Osageblogger so predicted..my hope punitive damages will be accounted for and the damge undone.
DeleteHold on Oil and Gas Producers! We are riding in to the rescue. If the U.S. Government Regulatory Agencies want a legal range war in the Osage, they've got it because we will join the FIGHT! Good for all of you who are going to Federal Court to stand up against all these regulations that will destroy Osage County. I am SO PROUD of all of you!
DeleteSecond confirmation:
DeleteFiled in Federal Court in Tulsa: United States District Court for the Northern District of Oklahoma.
Osage Producers Association versus Sally Jewell and Mike Black, Department of the Interior, Bureau of Indian Affairs.
Yep, they will pay dearly.
DeleteIs AG Pruit's lawsuit to fight the EPA relating to the Environmental Assessments? Did he also file against the BIA for the new CFR's?
DeleteYes, I believe it is. I don't know if the State of Oklahoma is going to file a separate action against the new CFRs or not. They may leave that up to other interested parties.
DeleteConfirmation of the 3rd filing in the United States District Court for the Northern District of Oklahoma:
DeleteOsage Minerals Council versus Sally Jewell and Mike Black, The Department of the Interior and the Bureau of Indian Affairs. Case # CV 371.
It is my understanding that the Attorney General's lawsuit against the EPA is unrelated to our issues. Hopefully, he will file suit against the BIA soon.
DeleteWhat took so long ong for the Osage Council to file?
DeleteThe wanted to get it right.
Delete@6:20 "What took so long ong for the Osage Council to file?" As any attorney or court will tell you, you cannot bring suit until you have been harmed. The OMC, as well as the producers, could not file any case until the rules implementation had been set.
DeleteThe timeline is simply a function of the procedure of law.
The 2nd filing, as referenced above, does NOT have relevance to Osage County. Different topic. The State's reply to the Osage issues is still pending.
DeleteThank you. We will be looking out for the pending filing.
DeleteFederal Lawsuit filings are now available for download at https://www.facebook.com/groups/234024393278360/
DeleteArticle:
Deletehttp://www.tulsaworld.com/business/energy/osage-nation-joins-oil-industry-in-asking-federal-court-to/article_bc875149-93de-592b-ab2f-78a62520f1b7.html?mode=story
DeleteAt point 31 on page 4 of the filing of OPA vs BIA and BLM, it states: "Under § 226.52(B), when the Superintendent makes unilateral decisions that an oil and gas lease is terminated for cause, with no requirement of support or evidence supporting a claim of termination, the Osage Nation is allowed to 'take immediate possession of the lease premises and all permanent improvements and all other equipment necessary for the operation of the lease.' 80 Fed. Reg., at 27,030 (§ 226.53(B))."
Has the BIA been working in collusion with the Osage Nation government to force producers out of business and illegally take their assets in order to directly operate the leases? Is that why ONES LLC was formed and how it intends to operate without sufficient investment of working capital necessary to buy the equipment and produce oil? There's something rotten about the regulations.
Paragraph 81 of the lawsuit is incorrect. It claims the Osage Nation is harmed, when it is in fact the shareholders. As an outcome of these regulations, the Osage Nation could actually benefit due to acquisition of assets by ONES without any investment. This could generate revenue for a business entity of the Osage Nation, even if the outcome for the shareholders isn't desirable. As someone said on the OFFR Facebook page, "Oh what a wicked web we weave when first we practice to deceive." To find out who benefits follow the money. It isn't the current producers and it isn't the shareholders.
DeleteWhere the lawsuit by the Osage Producers Association is clear and makes solid arguments, the same cannot be said of the one brought by the OMC. Paragraph 1 clearly states the harm to the producers, but fails to demonstrate "irreparable harm the Osage Mineral Estate." In fact, if the Osage Nation takes over the lease premises and other assets as provided for by 25 CFR § 226.52(B) there would be no harm to the shareholders by the BIA -- unless the Osage Nation is incapable of operating the leases and the BIA permits incompetence to continue.
DeleteFurthermore, paragraph 11 includes a citation from the 1929 Act, which provides that “as to all lands hereafter leased, the regulations governing same…shall contain appropriate provisions for the conservation of the natural gas for its economic use, to the end that the highest percentage of ultimate recovery of both oil and gas may be secured.”
The BIA has a solid defense. Based on history of the settlement, it can claim and demonstrate that it is only acting with prudence to prevent future mismanagement and loss of royalties of the ME. Also, the new regulations are clearly designed to meet the "highest percentage of ultimate recovery" clause of the 1929 Act. Note that nowhere within the 1929 Act is there a requirement to achieve the highest profit, or even a profit at all. Achieving the "highest percentage of ultimate recovery" may actually result in an operating loss.
Pray that the OPA is successful because the OMC lawsuit is a crapshoot at best. I was going to question where they found the attorneys to work on this, but I see it is Fredericks Peebles & Morgan - the same firm that often "helped" the Osage LLC.
Oh DEAR...
DeleteIf lessees are abandoning their leases and collection of royalty is plummeting how does that not show harm to the shareholder? If rule and regulation are so burdensome as to unjustly harm any producer, thereby driving business out of the ME and rendering it virtually worthless doesn't that reasonably show harm to the ME? To me it does, but I concede I may be to close or overly familiar with our problems.
DeleteAs for paragraph 11 that is under the statements of "Fact" and that is exactly what it is, a statement of fact. Whether it was written as best it should have been, that's the way it was written in 1929. I imagine it's inclusion is to demonstrate trust responsibility. I don't think we can quibble over how a trust responsibility was written 86 year ago. The fact is it's a trust responsibility however well or poor it was written.
At least that's my take on it.
Oil producers sue BIA -- http://barnsdalltimes.com/http:/barnsdalltimes.com/news/oil-producers-sue-bia
DeleteSorry to display my ignorance...but who or what are the "ONES LLC" ?
DeleteOsage Nation Energy Services, LLC.
DeleteOK, Thanks. Now...Just exactly what does the Osage Nation Energy Services, LLC do and how does it benefit the Nation or shareholders? Secondly....How much Nation money is spent for or by the ONES?
DeleteEarlier comments in line with the first comment bear more looking into. The whole CFR process had Sonny Abbott leading the pack from the beginning with Team Osage and Yates and Crum not far behind. Then we have this costly unnecessary primary election for the Chief and Asst. Chief that narrows things down to two candidates only. The two that come through to be elected in June of '12 are Standing Bear and Redcorn. The top contributor to Standing Bears campaign was Sonny Abbott and the word is out that Abbott wanted new Mineral Council member Waller to have a job in the Chief's office, I guess, sos he could keep tabs on the Chief for Abbott to make sure his money was being well spent. Then Waller loses his job due to political pressure that came down on the Chief for handing out jobs in his office as political paybacks. Then Waller switches sides with his vote to go with the four voting against the new CFRs and the other regulations. Galen went running off to the Chief to get on the EIS panel or whatever its called and then all hell breaks loose June 5, with little over a month before the new CFRs into effect on July 10 with the BIA held producer meetings looking like a smackdown on the producers. Galen was running back and forth to help the honchos on the panel during the big meetings answer questions they should have had the answers to before they ever came out of Washington. Eddie Red Eagle got up and put the blast on the Osage Agency gal, Robin, by telling her she can't make these CFRs work because she doesn't have the staff and manpower to do it. Then she shows up in braids on the last day looking like Gretel without Hansel and no bread crumbs in sight other than Galen. Shes not been attending the Mineral Council meetings lately and has been sending in an assistant.
DeleteMeanwhile the Chief finds out months ago about this Ute company that is coming in to drill and instead of knuckling down and doing what he can in solidarity to openly and publicly support and help the Mineral Council by press releases to get through all this when the new CFRs were published in the Federal Register on May 11, during this critical time, he goes running off on a rainbow tour of the Southwest looking like he's taking advantage of the situation to ram in his agenda coming back like he's the Second Coming declaring that he's going to now develop oil and gas on the Mineral Estate with the ONES, LLC when any development of the Mineral Estate is the clear territory of the Mineral Council by way of the Constitution. He doesn't seem to see or doesn't care that everyone is upset by what he's doing even though everyone has been warned on many occasions about his 1938 Indian Reorganization Act agenda to set up a big Osage Nation minerals department and regulatory division that has to be paid for with what money to fund it coming from where that can only go forward if the Secretary of the Interior and the BIA are no longer in there in the same manner as they have been in the past as the direct managing trustee and regulatory agency administrator of the Trust. Then the Mineral Council, minus the votes of both Crum and Yates despite the fact that these two should be able to see by now that things are spiraling wildly out of control with these new CFRs and a ton of other regulations the BIA is starting to roll out, vote to sue the BIA and the Chief stands down even though he could put in a legal action for an injunction on behalf of the Osage Nation as well because the Constitution says that the Mineral rights are reserved to the Osage Nation giving him the ability to do it. If he fails to run to Court on Monday and the Federal court denies the injunction because everyone isn't there who should be, Standing Bear, like Chief Gray, who lost the Federal reservation recognition in Federal Court, risks losing a sizable portion of mineral estate oil and gas production and whatever negative affects it will have on the whole of Osage County. He may well be be the Chief who will bear the brunt of the judgement of history branded as the one who destroyed the productivity of the Osage Mineral Estate for the Shareholders. They don't talk about the Osage Congress losing the reservation even though most of them in office at the time voted to fund the lawsuit. The one history now holds responsible for it is Jim Gray. Are we looking at a conspiracy or just one single man's agenda to take over the ME while Chief of the Osage Nation? I don't know but there's a lot there to mull over in all this and think about very carefully.
DeleteRight I agree with you even though I was not the one who posted the comment on who is ONES and what do they do? Could you some it up even better? The lack of support from the Chief is any wonder, he's not geeting any from this SHAREHOLDER..but I want to know why this person is asking?
Delete10:30 AM, you should write a novel. You have all the ingredients. Just be sure to not try to label it as 'fact.'
DeleteOne thing I've learned the hard way about this de facto government is how much is claimed to be fictitious from a speculative perspective which has a tendency to turn into cold hard fact.
DeleteThe timeline is a bit askew on the Chief's activities:
Deletehttp://osagenews.org/en/article/2015/05/01/standing-bear-plans-change-game-oil-production-osage-county/
http://osagenews.org/en/article/2015/06/02/standing-bear-administration-plans-to-develop-oil-and-gas/
https://www.osagenation-nsn.gov/who-we-are/energy-services-llc-board
A very interesting development...OMC Court Hearing Cancelled: New Date to be Set at Later Date at http://www.osagenation-nsn.gov/news-events/news/omc-court-hearing-cancelled-new-date-be-set-later-date
DeleteI have been asking myself, how does these regulations apply to a land that is not federal owned, but holds the trust? The Osage purchased these lands..what gives? The only answer that I can come up with is, Once again at the administrative level the BIA fails on a huge magnatude for several reasons, one is exactly right how can anyone come to a different opinon as to the impact without a economic analysis? And what is even worse at this point what is the future? And now defamation can be in the Billions worse discrimination because we are not like any other tribe gone unrecognized our uniqueness has all these agencies studied. Would they not be?
ReplyDeleteYou need to rally the Shareholders. They have been silent for decades. They do not visit this blog (with a couple of exceptions) so you should obtain a mailing list, if possible. The Mineral Council works against you, not for you. You're pretty much on your own in this regard. Good luck!
DeleteI beg to differ. The Shareholders do come in and visit this Blog. I get the online statistics report daily. They may not post comments but they are there and come in every day to see what's going on.
Delete@8:24 If I remember correctly, use of a mailing list is not technically legal. The mailing list for shareholders is kept by the BIA. It is only released to candidates for the OMC after they sign a waiver stating they will only use it for personal campaign literature or some such nonsense. As I remember, use of the list for any other purpose is punishable by law. That aside the list doesn't have current addresses for many shareholders. If a shareholder gets their check via direct deposit the BIA does not feel it needs to keep a current address for that shareholder. Someone feel free to correct me if I'm wrong about this.
DeleteI will grant you that recent previous councils have done nothing to benefit the shareholders, however, with regard to the current council it is my opinion they have worked pretty hard for the shareholders, with the obvious exceptions of Yates and Crumb, who's allegiance seems to be to the Nation and the BIA. I think those two have done nothing but torpedo the shareholder at every possible turn.
I disagree with you entirely except the mailing list...tell what it si the Council has done that the agency already has done?
DeleteThey have consulted with and expressed their dislike and frustration with final CFRs, the CFR process, the BIAs handling of the Donelson/Drummand EIS/EA demand, sought proper accounting and payment for the highway 60 project, and taken ENEL to court over infringement of tribal property rights, all on numerous occasions. With the exception of the substantive, although as of yet undetermined, action on ENEL all their concerns have been ignored or rebuffed. Ignored to the point the Superintendent will no longer attend council meetings. They have passed resolutions stating their opposition to the CFRs and stating their lack of confidence in the Superintendent. They have defeated MOUs the BIA and the Nation wish them to take part in that would further set the shareholders back. Finally, as the time has become proper, they have brought suit against Dept of Interior and BIA regarding the CFRs.
DeleteAll this while fighting the Nation suing them, an Osage paper that seems to only report on shareholders matters when they have to, and dealing with two member of the council (Yates and Crumb) who I bet would love to do nothing more than run and tell the Nation and the BIA every action the OMC plans to take.
What is it that they should be doing that they aren't? If it's reasonable and prudent perhaps we can bring pressure for them to act in other areas.
Thank you! Now that's a pretty damn fair assessment of what the Council has done for all of us. I get sick of all the disinformation bashing that goes on against the MC because they have been in the trenches for years, fighting off one party after another on our behalf since this new government took over that has had them in their teeth shaking them back and forth like a rag doll from the very beginning. The lack of respect for them even with the protections of the Constitution that are nearly spat on in contempt by everyone including Yates and Crum outside the Minerals Agency are such a blight on the reputation of our new Nation that it calls them all into question. It's no longer a matter of just disparate elements in the Nation who are involved in this ongoing battle against the Minerals Council. If the majority elements and elected officials of Osage Nation can be seen to be responsible for bringing the whole of Osage County to its knees, we need to think about a vote for a new government. The agenda of this one is too established and too dangerous for it to continue to run things for the Osage people.
DeleteThey would not be in tbe trenches had the MC stayed in the know, like I said everyone has an excuse, what I'm not hereing solutions and nothing ia an accident, most of this battle is self inflicted to a degree...accountability still however you look at it, it reflects and sometimes not in the ones best interests. This is just another day in Paradise and there will be adversity at times, this is all in a days work...This is where we are at not 20 years ahead of ourselves. Thank you for the update was appreciated, people who are successful just see things a littlt more clearly..Now what I want to hear from Is Galens opinion has it changed?
DeleteWould you please read what you put up here first to see if it's intelligible? Your double-speak is so convoluted, you hardly ever make any sense.
Delete12:45PM, did you just peak out from a rock? Or have you been to Mars and just got back?
DeleteMinerals Council meetings for July:
ReplyDeletehttp://www.osagenation-nsn.gov/news-events/news/minerals-council-meeting-dates-july-2015
Dr. Joe Conner is having an Osage Prayer Sunrise Service on the 8th in the middle of the Osage wind farm. Meet at highway 60 and the turnoff at highway 18 to Burbank at 6 a.m.
ReplyDeleteATTENTION! Osage Minerals Council AND Osage Producers Association Hearing in Federal Court IS WEDNESDAY JULY 8, 3:00 PM, Federal Court House, Downtown Tulsa! Please Be There To Support these efforts!
ReplyDeleteSee http://www.oknd.uscourts.gov/oknd/calendars/docket.html#
DeleteOsage Minerals Council AND Osage Producers Association Hearing in Federal Court IS WEDNESDAY JULY 8, 3:00 PM, Court Room #1, 333 West 4th Street (4th & Denver), Tulsa, OK
DeleteThe Judge needs to see all of the seats filled! He's more inclined to grant the injunction if he thinks there is a lot of interest from the Shareholders and producers.
DeleteWhether a court is packed or empty should make no difference on the ruling. If any judge makes decisions based on popular support instead of a rational basis in law and equity, then he needs to be removed from the judiciary.
DeleteI agree with both of you. Imagine that! Even in a court of law, the squeaky wheel gets the grease and yes the decision should be based in law and equity.
DeleteThere is a lot of good information turning up on the Osage Blog Conversation page at http://osageblog.blogspot.com/2015/06/conversation-june-2015.html
ReplyDeleteHello Osageblogger!
ReplyDeleteI previously posted a blog that suggested that the Shareholders do not follow this blog and you replied that I was wrong and stated that you have a log demonstrating that there are a significant number of Shareholders that visit this site and for whatever reason do not post to it. I was pleased to learn of this.
Now, that you have verified that a large number of Shareholders follow this site, you must have the ability to contact them. I would be very interested to know the results of a poll that you could post tonight inquiring as to how many of the Shareholders viewing this site will be present at Wednesday's hearing.
You can expect a significant number of producers in attendance. Please share with us how many Shareholders will be attending. I do not no the number of Shareholders but think the number is in excess of 10,0000. How many will be there?
Thank you!
If we have 10,000 Shareholders and ten percent attended, that would equate to 1,000 Shareholders at the courthouse Wednesday. I guess we'll see how many give a care on Wednesday.
DeleteI attended the first and last DOI/BIA meetings in Pawhuska where the Feds read us the "right act"; they advised us that they are the Feds and we're imposing our will upon you and you just need to accept the punishment. This is who we are and this is what your going to do for now on and in retaliation for the $380,000,000 settlement. Unfortunately, we are succumbing to their punishment. We deserve what we get if we don't fight back. No more royalty checks. Hopefully the bingo casino and tobacco businesses do well.
DeleteFrom my personal experience having attended two of the meetings, we had only three Osage Shareholders address the arrogant committee and standing up for the Shareholders. No kidding, only three Shareholders out of ten thousand or more. Where the hell are you folks? Do you not care what is happening to you? Are your quarterly checks so low now that it doesn't effect you any more? You surely don't think that the Mineral Council is taking care of you and your interest. If you do, God help you!
First there are around 5000 shareholders some are minors and if you knew this there is only one percent of Osages live in Osage County..the reason back in the 1930's most Indians left the Osage Reservation for t b e Military such as there was no work..then you couple with the fact that there is no communication with the Shareholders by the Council or Nation..no accident there. Yet when there is a settlement the DOI can get a hold of you..
DeleteSorry. Big housekeeping day today with laundry and shopping included. To clarify, the statistics indicate the number of individuals who visit the site per web page on a daily basis. It does not include the IP addresses which are retained by Google that is the company that makes this blog venue available. Even if the IP addresses were listed it wouldn't give out the names of those who are assigned to each IP address. Only the individual Internet Service Providers have that information and it is privacy protected. That aside, we have had 21 separate web pages dedicated to Shareholder Matters since this blog was started roughly two years ago. This Google blog does not offer polls as part of its functionality. You will have to pursue such a company that offers this product on your own and do the work yourself gratis for the Shareholders to set one up like we do in making this blog site available. We do what we can and encourage others to offer other online features that we don't offer here. We do make anonymous posting available on the Osage Blog that is not always available on other web site bulletin boards and blogs in the cyberspace marketplace. Best of luck on the poll idea that is a brilliant one and when you make it available, you are more than welcome to come back and post the URL to it here for the benefit of the Shareholders.
DeleteI am very surprised to learn that there are only 5,000 total Shareholders, that's barely two Shareholders per headright; I would have expected the distribution or lineage of the headright to be much greater. As to the fact that only one percent of the Shareholders reside in Osage County is insignificant. The non-Osage residents are suffering the same fate as the locals. It doesn't matter where they live, as they could travel for such an important matter and could also voice their opinions by writing letters and even making a small financial contribution to organizations such as the Producers Association Defense Fund mentioned in earlier posts. They should have flooded the Osage Mineral Council's office with correspondence voicing their opinion as to what they would like their representatives to do on their behalf. The OMC has finally filed their lawsuit; however, if they had more pressure from the Shareholders, maybe the OMC would have been more pro-active earlier in the fight; although, better late than never. I was very disappointed that the OMC did not take to the floor during the DOI/BIA instructional meetings and stand up to the members of the panel as did Mr. Red Eagle, Jr. and a couple of Osage Shareholders, all of whom received standing ovations from the Osage producers in attendance.
DeleteI'm sure glad you know peoples financial situations some of are on a strict budget..writing a letter would at this point do no good...especially when you don't have trust for your Tribe..we would not be in this predicament had there been people with great management skills...
DeleteSome clarifications regarding headright holders and number of shares:
Delete~ 2229 original shares
~ Approximately 1/3 or 743 shares are owned by non-Osages i.e., Churches, Corporations, Lawyers and persons of non-Indian blood.
~ Approximately 2/3 or 1486 shares are owned by Osages.
~ There are some number of shares owned by individuals who belong to other tribes though I don't know or have forgotten that number.
~ As of the last election their were, I think, 4006 shareholders eligible to vote.
~ Depending on the day and who is reporting it there are 16,000 to 18,000 enrolled Osages.
The OMC has no support from the Osage Nation, many of the Nation's constituents or the Osage News that the Nation publishes. Beyond quiet contempt, or whatever they feel, the Nation actively pursues at seemingly every turn another opportunity to subjugate, make irrelevant the OMC or sue council members into financial ruin. Many in the Nation have voiced their support for the new CFRs, though they seemed to have gone quiet here of late.
It seems, for whatever short sighted, hare-brained reason the Nation wishes to be in the oil business. They haven't made any greater return off the casino than the first day it opened. They've poured millions into failed business ventures which haven't panned out. They built a casinos incurring a 1/3 cost overrun without batting an eye. Currently they can't even grown any corn in their community garden or whatever it is. Yet they think they have the expertize to enter one of the most complicated business on earth. ...I digress.
Sorry if this is disjointed it was written over several hours will working on other things.
I would suggest in addition to pressuring the minerals council people should be pressuring the Osage nation to quit fighting and trying to take over the mineral estate with their MOUs and lawsuits. Let the shareholders deal with the minerals, the nation can go play government and lose more money at something else.
DeleteThat was music to my ears! Someone out there REALLY sees things for what they are and how its been and evidently always will be. I've said many times that the Shareholders better take ownership of their assets and get ahold of this situation. Excellent Job to poster at 9:44 AM.
DeleteActually, that figure is 19,000 total enrolled members of the Osage Nation as so published last year in the Osage News.
DeleteRauk Friend, as I recall, didn't you offer polls with your web site a number of years ago when Kent Radcliff's OSA Blog was active and on the internet?
Delete" As to the fact that only one percent of the Shareholders reside in Osage County is insignificant." While I agree with you 100% in sentiment, I think, in fact it is very significant. Many (not all, but many) of the Osage expats are only mildly engaged in tribal affairs and when they are they turn, as naturally anyone would, to the chief and his representatives. And I don't think he is on the side of the shareholders. But he has the title and again, as most people would do, they are going to trust the title before anything said by a blog, group, or even the OMC.
DeleteNonsense. They trust blogs and FB pages and message board and they have for years. These venues speak truth to power a lot of the time and don't think they don't and don't for a second think the Osage Shareholders and Osage Members don't know it because they do.
DeleteNew article --->>>
ReplyDeletehttp://www.indianz.com/News/2015/018081.asp
Osage News has an article too -->> http://osagenews.org/en/article/2015/07/06/osage-minerals-council-suing-department-interior-over-new-regulations/
DeleteDocket for Chief Judge Frizzell: TOMORROW, Wednesday, July 8th, 2015!
3:00pm -- 15-cv-367-GKF-PJC Consolidated Osage Producers Asso, et al vs US Dept. of Interior, et al Mot. for TRO Hrg.
What I would like to know what does Abbott, Crum, Yates and John McClain why he has not printed his opinion on what is going on at this point with the Law Suits and the outcome they hope for? Has their opinions changed?
ReplyDeleteI believe the name is Ray McClain and it's not very likely. Ray does valuable work in publishing information about what is going on with the Minerals Estate but he is firmly and absolutely entrenched as being for the new CFRs. He has made that clearly known on other web sites as well. http://www.osages-you-need-to-know.com
DeleteIn my opinion those guys are vested in the Nation. They only care about what the Nation thinks is good for the Nation and, I think, the Nation would like nothing more than to see the producers leave under some pie in the sky delusional assumption that they can somehow, via TERO or something, step in and become THE oil producer in the Osage.
DeleteI believe it's a TERA --->>> http://teeic.indianaffairs.gov/abouttera/
DeleteTero, see suits being filed if thats the case.
DeleteSomeone needs to CALL and QUICK like a little bunny, OST Head, Vince Logan, Osage, and let him know how well "Trust Reform" is going for the Headright owners and the Osage Mineral Estate before he testifies before the Senate Indian Affairs Committee tomorrow afternoon! See http://www.indianz.com/News/2015/018087.asp and http://www.indianz.com/News/2015/018081.asp
ReplyDeleteThis thread is now closed. Go to: http://osageblog.blogspot.com/2015/07/osage-shareholder-matters-july-2015.htm
ReplyDelete