The BIA in Osage County has a clear mandate by Federal Law to work for the benefit of the shareholders of the Osage Mineral Estate. Since 2014 this has clearly not been the case. In FACT; the “non-CO2 daily oil production in Osage County has fallen from 14,266 BOPD to 8,279 BOPD”, a 42% decline in production”. Even when including the CO2 oil production, which has been a bright spot in this storm, total daily oil production has dropped to just over 10,000 BOPD., an approximate 28.5% decline in overall production.
A major cause of this decline in oil production is the failure of the BIA to issue new drilling permits in a timely fashion. Before 2014, the average of new permits per year was 200. Since then, there have been fewer than 100 issued. This inaction will continue hurt oil production in the future for many decades to come.
These facts show that the BIA in Osage County is evidently not working for, or in the best interest of the shareholders of the Osage Mineral Estate. Who then is the BIA in Osage County working for? The data shows that the BIA in Osage County is working in the best interest of the surface land owners, some of who are Osage. All of the above actions that have caused the decline in daily and future oil production have come since a meritless law suit was filed against the BIA and Osage County oil producers on behalf of surface land owners in 2014. Even though this suit was dismissed in 2018, the BIA has continued to delay issuing new permits and created new road blocks, such as locking up well records that were previously available to producers for over 100 years. Producers cannot and will not drill new wells without this information. This shows a continuing pattern by the BIA of placing the interest of the surface landowners above the interest of the shareholders of the Osage Mineral Estate. In addition to hurting the shareholders, the decline in oil production has hurt the economy of Osage County. If you are concerned about this sad situation, please go to http://www.angelfire.com/tx/braindanceink/EISINFO.html to see how you can help.
— Jim Ryan