Best way to Market mineral rights/Leasing

Oil and Gas Leasing Help
1

What are the best ways to market one's unleased properties?

We (My brother, my sister and I =100%) have approximately 298 acres near Outlook Montana (Sections 19 and 30) T36N R53E, on which the current lease to Great Northern (apparently transferred to Flying J?) expired. When asked, they indicated they were not interested in re-Leasing. (Anyone know why they might say that?) Does anyone recommend filing something of record to let people know that a lease has expired? We can't have been pooled as we have not received anything from producing wells in the area, and there is no state pooling order for this area.

I see where Yates Petroleum recently (Dec.) leased in 36N 52E Section 36) for $100/acre from the state. This is just 2 section away.

Should one make offers directly to parties such as this? or wait for them to approach us?

We also have 360 acres in Section 12, 34N 54 E. These, to my knowledge have never been leased. Our mother inherited both of these properties from her parents who originally homesteaded them so the title is fairly short and sweet.

We were approached by a landman saying he was representing an outfit named "FoxTrot" a new LLC out of Colorado formed only in January. I suspect this is just a front , but am uncertain whether to deal with them since they seem implacable as to their terms which include requiring us to sign a lease on a promise to pay, even though the lease says we have paid. Has anyone heard of this group?

2

I think it’s safe to say that if you deal with a LLC that you need cash up front. Remember that you have the power of line item veto. You could strike the line that says you affirm that you have been paid even though you have not. It would be a good thing to do on any lease where you have not been paid yet. You may still have to sue if you do not demand payment up front, but at least it’s one hurdle out of the way when you do sue. Don’t ask me how I know. As for lack of interest, operators are going to be stung for awhile by lease expirations that they could have drilled if it weren’t for a bad winter with 100 inches of snow, the spring melt, torrential rains on top of the melt causing floods and the roads being in very poor order after the floods. In their place I wouldn’t be leasing anything I wasn’t sure I could get drilled before the lease expired. Search “bank draft” in these forums for ideas how to assure payment for your lease. You really don’t want a lease recorded without you being paid. Good luck.