Charter and Capstone have contacted me about leasing mineral interest in S23-T7N-R3W. They are offering $150 per net acre with 3/16th gross proceeds royalty & 3 years OR $175 per net acre with 1/8th gross proceeds royalty & 3 year term. Most of this is greek to me. Does anyone know of any activity in that area? Also, are these amounts about the going rate for this area?
Teddie,
You may have been force pooled. Was there an offer to participate? Were there two separate offers? Don't be in a rush to sign a lease before you know what is really going on no matter how small your acreage may be.
Thanks for responding.... Yes, I did receive an offer to participate... would be more money than I have! There has been no forced pooling. There was one letter from Capstone - options were:
$150 - 3/16th - 3 year
$175 - 1/8th - 3 years OR
Participate in the drilling of the proposed well by paying in advance my proportionate share of the estimated completion cost of the well - and they provided and Authority for Expenditure for the cost of the well. My sister, cousins and I have 10 acres of mineral rights.
Gary L. Hutchinson said:
Teddie,
You may have been force pooled. Was there an offer to participate? Were there two separate offers? Don't be in a rush to sign a lease before you know what is really going on no matter how small your acreage may be.
Gary L Hutchinson
Minerals Management
Teddie, I would do nothing. You should get a better offer on pooling. I was sent an AFE and a lowball offer in 7N 4W over a year ago. It was pooled much better than that. The initial AFE was bullshit.
Tom,
What was the pooling bonus? Do you remember? You are right about the AFE
It appears that Charter/Capstone is starting from scratch for a leasing attempt but does have one permit in the Section, another reentry.
Gary Hutchinson
Tom Ed Moore said:
Teddie,
I would do nothing. You should get a better offer on pooling. I was sent an AFE and a lowball offer in 7N 4W over a year ago. It was pooled much better than that. The initial AFE was bullshit.
Gary/Tom -
Ed Cranwell, who represents Charter Oaks, said they would be having a "hearing" in 3 weeks....not sure exactly what the hearing was for...
Teddie
Gary L. Hutchinson said:
Tom,
What was the pooling bonus? Do you remember? You are right about the AFE
It appears that Charter/Capstone is starting from scratch for a leasing attempt but does have one permit in the Section, another reentry.
Gary Hutchinson
Tom Ed Moore said:Teddie,
I would do nothing. You should get a better offer on pooling. I was sent an AFE and a lowball offer in 7N 4W over a year ago. It was pooled much better than that. The initial AFE was bullshit.
They have already pooled the N/2 NW/4, it is already ordered, so you must be talking about another tract in that section which there is nothing filed so I don't know why he says there will be a hearing in a few weeks as even an emergency order takes longer than 3 weeks. If you put off leasing you take a chance on losing out on getting a bonus as they stop leasing in areas as quick as they start, many people hold out too long and end up with nothing. If they do want to end up drilling someday and you haven't leased you'll get pooled and you'll miss the opportunity to have a good lease with various clauses, etc., not very smart normally. You do not want either of these to happen to you, it would be a poor decision you made more than likely. It maybe years before one knows what is going on and how well it plays out. The best advice one can give you is to negotiate to get better terms like bonus and make certain you get a good lease with all the terms or clauses they will go for. To say don't lease or hold out is just plain wrong and their pooling is about the same terms they are offering you but with no clauses and I bet you could negotiate a better deal.
Yes, this is a different area. Last December I was contacted about the NW 1/4 of Section 23. Two 80 acre drilling and spacing units were established by order 607274 in January 2013. Since I had no mineral interest in that area, I don't know what has happened since then. The mineral interest I have that Capstone/Charter Oak has contacted me about is in the South 1/2 of the SW 1/4 of Section 23. One of the documents sent to me with regard to the NW 1/4 says Order #98011 established 80 acre drilling and spacing units for the Hart common source of supply underlying the W 1/2 of Section 23... this would include the S 1/2 of the SW 1/4... I think.... And it is certainly possible that I don't understand what it says! So does another Order have to go to the Oklahoma Corporation Commission? I have not received any paperwork regarding any new Order.... Be that as it may.... I appreciate your advice. Except I don't know what clauses or terms should be included that would be beneficial to me and what ones I should watch for that would not be beneficial to me. Can you tell me more about clauses or terms I should include? Thank you so much for your advice...
Mineral Joe said:
They have already pooled the N/2 NW/4, it is already ordered, so you must be talking about another tract in that section which there is nothing filed so I don't know why he says there will be a hearing in a few weeks as even an emergency order takes longer than 3 weeks. If you put off leasing you take a chance on losing out on getting a bonus as they stop leasing in areas as quick as they start, many people hold out too long and end up with nothing. If they do want to end up drilling someday and you haven't leased you'll get pooled and you'll miss the opportunity to have a good lease with various clauses, etc., not very smart normally. You do not want either of these to happen to you, it would be a poor decision you made more than likely. It maybe years before one knows what is going on and how well it plays out. The best advice one can give you is to negotiate to get better terms like bonus and make certain you get a good lease with all the terms or clauses they will go for. To say don't lease or hold out is just plain wrong and their pooling is about the same terms they are offering you but with no clauses and I bet you could negotiate a better deal.
I didn't look at the spacing order, I just looked at the pooling order. The spacing order may establish 80 acre spacing for Hart common source and they probably included more than the 80 they've leased just to save time and money with the thought of leasing the entire W/2 but there is no pooling order that includes any of the South 1/2 and it takes some time to do a pooling as they have to place notices in the newspaper 2 or 3 times and then court hearings, I believe an emergency pooling can be done in like 2 or 3 weeks but they haven't even filed one yet.
OK - Thanks... that shows what I know.... I should have figured out that what I have is a spacing order... not a pooling order. The next time I talk to the representative for Charter Oaks, I will ask him what 'Order' deadline he is referring to.... I can't see where this could be considered an 'emergency pooling.' If that is the case, then I need to make up my mind soon whether to accept the existing offer or go with a pooling..... Thanks, again!
Mineral Joe said:
I didn't look at the spacing order, I just looked at the pooling order. The spacing order may establish 80 acre spacing for Hart common source and they probably included more than the 80 they've leased just to save time and money with the thought of leasing the entire W/2 but there is no pooling order that includes any of the South 1/2 and it takes some time to do a pooling as they have to place notices in the newspaper 2 or 3 times and then court hearings, I believe an emergency pooling can be done in like 2 or 3 weeks but they haven't even filed one yet.