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Kiowa County lease

My husband and I just received an offer from McDonald for $150 per net mineral acre, 15% royalty, 5 yr primary term with a renew of 4 years. Our mineral right is located in the SW part of Kiowa County. We live in NE and not have had to deal with anything like this. What kind of drilling are they proposing in CO? What are other mineral right owners being offered? Is this a good offer or should we wait before signing a lease. We contacted a lawyer in Brush (robert chapin) last fall about other mineral right concerns and he was very helpful. Does anybody know anything else about him (good or bad). Does all mineral right owners and land owners have to sign a lease before an oil company can start to drill? Any other information about leasing would be helpful??

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Permalink Reply by charles s mallory on February 7, 2012 at 8:31pm

Elaine:

You might want to also post under the "Groups" section at the top of the page. Click on Groups and go to Colorado; then to Kiowa County. I think there is 30+ members on that site.

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Permalink Reply by Jordan stevens frazier on February 8, 2012 at 7:02pm

hello Elaine, off hand i did some digging in our area. looking at roughly 2000 drilling permits but the area is short of the type of rigs they will need to drilling the 5,000-6,000 ft pay zones that are est to be around 600 ft thick of unconventional and conventional zones. Rigs will need to e moved in from kansas. Im in the oil business here in HSouton and we own minerals in Cheyenne for more than 50 years or so. The geology here is similar to the Utica on a depth, pay zone, clay content and vintrinite reflectance Ro%, etc in our area and very promising. all in all, we are in the early stages of the leasing and and all the big fish have been caught into 2012. Hope this helps....

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Permalink Reply by Jordan stevens frazier on February 14, 2012 at 1:30pm

here is an overview of the leasing that occured in Cheyenne in parts of Kiowa county to date, this is a bit delayed....