SandRidge Mississippian Trust I (Trust), a statutory trust, holds royalty interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant, and Woods counties in Oklahoma (the Underlying Properties). The royalty interests conveyed by SandRidge from its interests in certain properties in the Mississippian formation in Oklahoma and held by the company are referred to as the Royalty Interests.
The Royalty Interests entitle the company to rece...
SandRidge Mississippian Trust I (Trust), a statutory trust, holds royalty interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant, and Woods counties in Oklahoma (the Underlying Properties). The royalty interests conveyed by SandRidge from its interests in certain properties in the Mississippian formation in Oklahoma and held by the company are referred to as the Royalty Interests.
The Royalty Interests entitle the company to receive 90% of the proceeds from the sale of oil, natural gas and NGL (natural gas liquids, such as ethane, propane, butanes and natural gasolines that are extracted from natural gas production streams) production attributable to SandRidge’s (SandRidge Energy, Inc.) net revenue interest in 36 wells producing as of December 31, 2010, and one additional well undergoing completion operations at that time (together, the Initial Wells); and 50% of the proceeds from the sale of oil, natural gas and NGL production attributable to SandRidge’s net revenue interest in 123 development wells drilled (the Trust Development Wells) within an area of mutual interest (AMI) between January 1, 2011, the effective date of the conveyances, and June 30, 2013. As of December 31, 2020, SandRidge owned 7,528,063 Trust units, or approximately 26.9% of all Trust units.
Properties
As of December 31, 2020, the company’s properties consisted of Royalty Interests in the Initial Wells and 121 additional wells (equivalent to approximately 124 Trust Development Wells under the development agreement) that were drilled and perforated for completion between December 31, 2010 and June 30, 2013. SandRidge was credited for having drilled one full Trust Development Well if a well was drilled and perforated for completion with a minimum perforated length of 2,500 feet and SandRidge’s net revenue interest in the well is equal to 57.0%. For wells with a perforated length of less than 2,500 feet and for wells in which SandRidge had a net revenue interest greater or less than 57.0%, SandRidge received proportionate credit for such well. The Royalty Interests are in properties producing from the Mississippian formation in Oklahoma. The company’s proved reserves were 1,128 thousand barrels of oil equivalent (MBoe) as of December 31, 2020.
Marketing and Customers
SandRidge has the responsibility to market, or cause to be marketed, the oil, natural gas and natural gas liquids production attributable to the Underlying Properties. SandRidge sells oil, natural gas and NGL from the Underlying Properties to a variety of customers, including oil and natural gas companies, and trading and energy marketing companies. For the year ended December 31, 2020, SandRidge’s major customers for the production from the Underlying Properties included Targa Pipeline Mid-Continent West OK LLC and Plains All American, Inc.
Regulation
The significant existing and proposed environmental and occupational safety and health laws and regulations, as amended from time to time, to which SandRidge business operations are subject include the federal Comprehensive Environmental Response, Compensation and Liability Act; the federal Resource Conservation and Recovery Act (RCRA) and comparable state statutes and implementing regulations; the federal Clean Air Act and comparable state laws and regulations; the federal Clean Water Act and analogous state laws and implementing regulations; and the federal Endangered Species Act.
SandRidge has developed and implemented spill prevention, control and countermeasure plans for the Underlying Properties as required under the federal Clean Water Act.
SandRidge is an active participant on various agency and industry committees that are developing or addressing various federal Endangered Species Act and other federal and state agency programs to minimize potential impacts to its business and the Underlying Properties.
The operations of SandRidge are subject to a number of federal and state laws and regulations, including the federal Occupational Safety and Health Act (OSHA) and comparable state statutes. Underground injection operations performed by SandRidge are subject to the Safe Drinking Water Act (SDWA), as well as analogous state laws and regulations. SandRidge and other operators of the Underlying Properties generate wastes that are subject to the requirements of the federal Resource Conservation and Recovery Act (RCRA) and comparable state statutes.
History
SandRidge Mississippian Trust I was founded in 2010 under the Delaware Statutory Trust Act. The company was incorporated in 2010.
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