We own property and mineral rights in Section 30, 19N, Range 5 West. We received a lease offer from Jackfork Land, Inc. We inherited two properties in the area in the last 18 months. Question is: I know we are in a 'pooling" situation. What is the best lease or assign of our interest should we take.
1. Participate with your interest in the drilling of the proposed test well.
2. Lease or assign your interest to SCO (name of operator of the well) for cash consideration $xxxx per mineral acre reserving 1/8 royalty and delivering 87.50 net revenue interest.
3. Lease or assign your interest to SCO for cash consideration of $xxxx per mineral acre reserving 3/16th royalty and delivering 81.25% net revenue interest.
4. Lease or assign your interest to SCO for a cash consideration of $xxxx per net mineral acre reserving 1/5th royalty and delivering a 80% net revenue.
5. Lease or assign your interest to SCO for cash consideration of $0.00 per net mineral acre reserving 1/4th and delivering 75% net revenue interest.
We were forced into the pool, why is their no end or beginning date and what is the best option? I have to know pretty quick or we will be forced to take the lowest or cheapest to them, option. We have another royalty lease on another piece of property in that area and we were able to negotiate terms, length and price. Why is this one not negotiable and what is the best option.
I'm very new to this, so I would appreciate any information or opinions. Thank you in advance!