I have been offered a lease by American Mineral Partners for my minerals located NW/4 of Section 12, Township 10 North, Range 5 West in Canadian County. The offer is for $1250.00 per net mineral acre with a 1/8th royalty. I do not know if this is a fair offer or not. Please help.
Richard,
Do you know if you have been force pooled or if there is production including your land?
At the per acre price, the other terms of the lease are extremely important such as term length, cost sharing and point of measurement for payment.
I own only minerals. The lease term is for 3 years but extends if there is work currently in progress. I do not know about force pooling. I was offered three leases. $1250.00 with a 1/8 royalty, $1000.00 with a 3/16 royalty and $750.00 with a 1/5th royalty, per net mineral acre.
I would be forced pooled and take 1/5th. The other formations will not be pooled and be open if not already producing.
Hi Tom, I'm afraid I don't know what forced pooling means. I am 100% novice even tho I'm 74. LOL.
Hi Tom, I have been reading about forced pooling so I now understand what it is and I do not believe I am being forced pooled at this time. I am interested in leasing as I could use some money now and it sounds like I would need to wait to be forced pooled. American Minerals is anxious for me to sign a lease but did not seem willing to go above the $1250.00. I think they have someone wanting to drill but I don't know that for a fact. On the other hand, I'm not going to act hastily and should probably just wait awhile. Thanks, Richard
I own 36 acres.
Richard,
Basics of Forced Pooling,
The State of Oklahoma can allow an exploration company to drill on your mineral rights without your permission but the State regularly agency sets out your rights that the exploration company must pay you for a lease right and production royalty if wells produce from the permitted formations. Comprehensive terms for both parties are established by the regulators for both the mineral owners and the exploration company. The mineral owner is given options combining lease payment and royalty to choose from. If the mineral owner doesn't choose in writing by a certain date, the highest lease payment and lowest royalty are the option chosen by default. It is a good guess that you have been force pooled and received no notification from the State because they don't know you exist, title is not in your name, or you have no address on the exploration companies records.
The best long term option, if you can still take it ,is as stated by Tom Ed More. If you have no documentation from the state, ask the offering company for the source of its offer to you. It could be that the State order has not been finalized as yet. Feel free to send me a personal message and I will try to help you through this morass as i have many others in the past.
Gary, Thank you, this is very helpful. My mothers will was not probated and stepsisters have been sent a quit claim deed. This is originally the Parkins family farm and my mother left me her interests. I will be in touch and thanks again.
Richard
American Minerals has received the quit claim deeds from my siblings so that part is complete. I have requested they email me copies of them. I also received in the mail today an offer from Redstone Resources to purchase the minerals for $3000.00 per acre or about $108,000.00. Does this seem to be the going rate?
I suspect that you and your sisters are being taken advantage of as a result of your lack of knowledge of a cut throat business. Find a lawyer with oil and gas experience and ask that the attorney help you with a purchase and sale agreement. It may be too late for your sisters if they signed the QC deeds. This is not a retail business. All petroleum deposits are different and in Canadian County you may be involved in multiple formation potential.
Question: If you and your sisters had inherited a big house would you accept an offer without getting it appraised? That seems to be what you are doing.
If you need the name of a mineral attorney near Hurst, let me know. I'll give you names. Answer my "friend request" on MRF if you want to communicate directly
Thanks Gary, Good advise. The reason for the quit claim deeds is that the sisters had no real claim to the property as this was my mothers before her marriage to the father of the sisters. I would appreciate the name of an attorney in the business as I admittedly don't know what I'm doing or what I should do. And yes, I would imagine an appraisal would be an intelligent thing to do. Is this something an attorney does or is this something you do?