How would I find the landman. Would I be notified if a lease bonus were to happen, and what does the 25% rate mean. Sorry for all the questions trying understand all the terminology.
Eric, If you already have a lease, you cannot change it. You are held by the previous terms. What the 25% means is that when you lease, the operator takes the risk of drilling the well. They will keep 75% of the royalties and you get 25% of the royalties from the sales of the product. Whatever your original lease terms have will determine your royalties. If you have an old lease, it might be at 1/8th (12.5%) or 3/16ths (18.75%), etc.
On the landman question, not many companies have their own landmen any more. They contract them out to do the leasing and then they do not really know anything about the plans the companies have. In this case, with four wells already spud, EOG is serious about developing the area. I would not sell.
Great explanation – thanks! Is there a simple way (by calling McClain County?) of finding a copy of the original old lease by which a relative bought our McClain County mineral interests many (50+) years ago? Thanks!
McClain county clerk is crazy busy! You could try…
The digital files go back to the early 90’s online at www.okcountyrecords.com but that may not help you unless you look up the relative’s name and see if they have done anything since the 1990’s. May need to go in person or get a land man to help you.
Thanks once again for your helpful insights! All the best to you…