Greetings, I am new to the forum. My family owns mineral rights in section 21 and 22 in Canadian County and we are being approached by a company, offering us a new lease with a $1750/acre bonus payment and 3/16 royalty. We’re trying to find out who exactly holds the lease at this time (rights handed down from family member and is not clear). Are these the going rates and does anyone know how to search for county records to verify who is leasing the rights at this time and prior history? Anything else we should know?
Thanks, JN
You will need to give the Township and Range as well as the Section numbers for anyone to advise you. However, I think that’s a low offer for anywhere in Canadian County. You would want a minimum of 1/5 and might be able to get 1/4. Also, the bonus is most likely too low.
Please read a lot of the postings on this forum to educate yourself as to lease language. I would also recommend the post for Inexperienced Mineral Owners and check out the NARO link for Mineral Management 101.
Thanks, A Monty. Much appreciated. Will read the posts you recommend.
JN
ngilmore (aka JN)
I moved your message over to the Canadian County Category in Oklahoma where you will be more likely to get a reply.
You need to add the township and range to your 21 & 22 as there are quite a few townships in Canadian with those section numbers. The geology changes quite a bit, so the bonus amounts will change as well. When you add that piece of info, I can help you out a bit more.
If you are being offered a lease right now, then “no one” holds a lease as the previous lease expired.
The companies that are leasing in 14N-5W are Griffith Land Services, Red Bluff Resources Operating. Griffith may be leasing for Red Bluff.
Do not sign the first lease they give you as it will not be in your favor. Do a lot of reading in the Canadian County forum and the Mineral Help tab above. You will need to negotiate for better terms and have an Exhibit A which will have clauses that better protect you. Ask for at least 1/5th and see if they are offering 1/4. Judging from the drilling around you, Red Bluffs may be working on a horizontal well soon.
Since they pooled Sec 16 near you on August 22, 2018, at $2500 3/16ths, $2250 1/5, your current offer is too low and should start closer to the pooling amounts.
We are trying to find out if our lease has expired or is due to expire. We are being offered a lease from Alvarado, Master Oil and Gas, and Haggard Land Co. Neither of the 2 you mentioned have contacted us.
JN
We just leased 20 nma in 14-14-5 CAnadian County with Antelope for 2200 & 1/5
Just a note, be sure that your Exhibit A includes a specific clause regarding injection wells. Their standard lease states that they may use the well for any purpose they want. Also make sure that in the clauses that affect you, the word may is changed to SHALL… I hope you have a good oil & gas attorney to advise you. I do and her advice has been worth 50 times her fee.
Thanks for the information, Cecil. Are you interested in sharing the name of your attorney?
Brenda (Wendy) Huff 405-843-9779. Sometimes hard to make contact. Leave a Message or talk to Ed Simmons a t same phone number. they are both very good. My apologies for taking so long to respond I have been waiting on Atlink Wifi to connect. The worst possible internet service available…
Cecil Bearden
Thanks Cecil. I’ll look into contacting her.
JN
They want your oil. Hold out for 25% royalty, the standard rate for decades. Some owners sell themselves short by taking the immediate per acreage bonus payment ($1,750 in your case?), and then later they discover that 3/16 royalty was a terrible deal. All I can say is that when I was adamant about receiving 25% as my royalty, and the oil company took it.
Thanks, John. Appreciated the feedback.
we have been contacted by American Mineral partners w/ 3/16 and !000.00 an acre is this fair value… sect 13 10 N 05 W
Is this an offer to buy or an offer to lease? Probably quite low if an offer to buy. Even too low for leasing based upon nearby pooling.
This is an offer to lease
Always ask for what they are offering for 1/5th and 1/4.