Received a call and subsequent follow up email (sample lease and general info) regarding a request for us to sign a Brine Lease (Blaine,OK). This new lease request is in a current producing oil and gas section we own and have leased and have division orders for. The person who contacted us stated they process waste water from the producing well(s) and extract Iodine and which we would receive royalties and it has no effect on the current producing oil and gas lease & division order(s). They also stated generally the royalties are not massive.
Questions:
- Any general advice about this type of lease? Typically we would opt out of the bonus for a higher % royalties. Is this still true and any other advice/guidance?
- Following the advice of this forum, we have stopped signing division orders for O/G. Is this the same if we get a DO for a Brine lease?
Thanks in advance for any insight.
Van Manager Deaner & Co