I am seeking any information about Brine Well offers by Summit Land Co. on behalf of Woodward Iodine Company (WIC) in Dewey Co., Okla. My mother rec’d an offer of $2.50/acre “bonus” offer and then 3% of profits of sold iodine. We have a Landman in the family who lives in that area and he says he doesn’t think they are offering enough, but if no other companies are offering, then the only comparison is $0, so holding out awhile in hopes of a better offer might make sense and be a good strategy, but there’s also the variable of whether someone is 95 y/o vs. 50 y/o as to whether it makes sense to accept the offer that’s on the current table. Curious about thoughts, insights and other information re: this offer and if brine well drilling is going to be more prevalent, therefore becoming more competitive in this area with more offers likely in the future.
Thank you!
Hi Apache,
We received the exact same offer from Summit Land Company also regarding Dewey County. I don’t know if forced pooling will apply for this situation but I’m thinking that might nudge the dollars up a little bit. I don’t know for sure. I may call the agent to see if we can get a little bit better deal. I’ll report back if I do.
Take care!
Thanks for your response John. I had also planned to contact the rep. Obviously they won’t be objective but I thought I might learn a bit more to give me context and help me help my mom with her decision. I will let you know what I learn too and I appreciate in advance anything you can learn and share with me!
Exclude lithium from the lease. They may be hoping to extract more than what they are saying OR, is this a brine disposal well? In other words, they will pump waste water down some older wells no longer producing? perhaps while recirculating fluids to extract?
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Thanks for the tip Terrel. I don’t recall lithium being mentioned, but will re-read. Or, are you saying it may purposefully be left out of the verbiage and we should proactively request that exclusion be written in?