Continued on TODCO

In addition to my last post, to clarify, this is only an acre in McClain, Sec 5, Township 6 North, Range 3 West and Section 32, Township 7 North, Range 3 West. Thank you!

We lost the context. Could you ask your question again. I am assuming it goes with your leasing question. The 1/4th royalty is the best. Todco is a legitimate company but they are leasing for someone. Do not lease two sections on the same lease. First offers may be low to later offers. You might get some others. The clauses in the lease are much more important than the bonus amounts. If this is your first time to lease, you probably need to get a good oil & gas attorney to take a look at the lease as the draft they send you will not be in the mineral owner’s favor. It will need some negotiation.

Hi Ms. Barnes,

Thank you very much for the tips. I do not have the income to hire an attorney, so I have to go it alone. If I should decline this TODCO offer, you indicated there may be better offers to come. How do I know that there will be better offers? Yes, I do not care about the bonus as much as I do the higher royalty payments. How do I negotiate on my own…Just say, “Are you open to negotiation?” Thank you in advance. Janet

Do you have an acre split between those two sections or just in one of the sections?

You do not have to lease. No guarantee that they will get to a pooling hearing, but you can also wait for pooling and that is another good option. With only an acre, you don’t have as much bargaining power as someone with 20 acres. You don’t know if there will be better offers, only time will tell.

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