We use a consultant who charges 1/2 of what an attorney does and knows 100 times more; We used BLACK GOLD CONSULTING in Sidney for all of our leases!! Even tho attornies are cheap in Montana compared to many states, most don't have oil contract knowledge!!
Cookie Gartner said:
I would never ever sign a lease without an attorney. They work for a percentage, so you have no upfront costs.
Good luck!
The 1/8 is 12.5% of production attributed to your acres whether they be 1/2 acre or 500 acres. I think many people who lease for 20% probably only pocket 12.5% after taxes and deductions that the operator is allowed [or better yet, not expressly forbidden to take ] from your royalty. If you have 12.5% royalty (1/8) to begin with and they take anything out, which they will even if it's just taxes, your lease is earnings challenged from the beginning. Most, almost all, relatively speaking, leases are for production attributed to acres of yours contributing to the unit, for which you receive your royalty, large or small. Given the choice, I would choose large.
ronald von wilson said:
Leasing I sort of comprehendez, but it is in the royalties where it gets kinda sticky. 20? My own lease reads 1/8 while I see others reading 3/16, but what is that really about? 20% of what gets pumped up is yours in royalties? I have my doubts. More than likely it is a total percentage, and I believe Oklahma has at least 18% by law??? But then that 20% the lease expresses is divided by 139 other people who also share in it? I do not know the answer to it, but I do know this, the Oil Company is going to make it as evasive as they possibly can for you, and any attorney is going to make it as complicated and full of loophoses as they can. If you have a thousand acres plus of minerals, sure, it would probably pay you to consult the best minerals attorney you can afford with up front money or put on a credit card. But if the minerals have passed down 3 or 4 generations, and there are 117 great grand children splitting what comes up, and most of them own half an acre or even less of minerals, if it was me, I would just let it ride and not make it so easy for the attorneys and the oil companies to rip me off, because that is what they do best, allah time.
Hey Charles,
I have accessed the well several times and really appreciate that information but recently I have not been able to click on the area of the well. It will not narrow down the search. Do you have any idea why or any other way to view the information?
Thanks
LD
charles s mallory said:
Linda:
You can pull up the Montana Map as follows: Google "Montana Oil and Gas"; Click on "On - Line Data"; Click on "Live Data Access"; Click on GIS at top; a map of MT will appear; use your cursor to click on the area where your minerals are located (hint: you may have to try several time before you find your exact T/R/S area; click several times to magnify; once you locate your area, click on the "i" in circle at top; now click on the individual dots (which are wells) and identify the well operator, etc. Hope this helps.
Linda Downey said:Thanks Charles for the information and here is the exact location: Township 23 North, Range 54 East of the M.P.M.(what does M.P.M. mean?) Section 22: N 1/2. Also how can I see where the drilling is taking place?
Thanks again Charles!
charles s mallory said:Linda:
You didn't specify the exact location of these minerals (Township/Range/Section) or the total net mineral acres involved but if plans are in the works to drill soon, I would think that you would be in line to get a very good lease. Of the four choices you stated, I would lean towards leasing your minerals as the other involves factors that you may not fully understand. You can read posts on this forum dealing with participating in a well but familiarize yourself fully before engaging in this type action. I would counter this $500/acre with $1000/acre and see what they say. The 20% is norm and the 3 year agreement is good. Again, it also depends where your minerals are located in Richland County and more important, the wells within the proximity of your area. If you have some good producers close to your area, your negotiating power is much greater but if your are is somewhat undrilled (risky) then the oppostite applies. Good luck in your negotiations.
Linda:
The Montana website was working ok as of yesterday but a small problem on the site is not out of the question. Keep trying as you should be able to get the system to operate properly soon.
Linda Downey said:
Hey Charles,
I have accessed the well several times and really appreciate that information but recently I have not been able to click on the area of the well. It will not narrow down the search. Do you have any idea why or any other way to view the information?
Thanks
LD
charles s mallory said:Linda:
You can pull up the Montana Map as follows: Google "Montana Oil and Gas"; Click on "On - Line Data"; Click on "Live Data Access"; Click on GIS at top; a map of MT will appear; use your cursor to click on the area where your minerals are located (hint: you may have to try several time before you find your exact T/R/S area; click several times to magnify; once you locate your area, click on the "i" in circle at top; now click on the individual dots (which are wells) and identify the well operator, etc. Hope this helps.
Linda Downey said:Thanks Charles for the information and here is the exact location: Township 23 North, Range 54 East of the M.P.M.(what does M.P.M. mean?) Section 22: N 1/2. Also how can I see where the drilling is taking place?
Thanks again Charles!
charles s mallory said:Linda:
You didn't specify the exact location of these minerals (Township/Range/Section) or the total net mineral acres involved but if plans are in the works to drill soon, I would think that you would be in line to get a very good lease. Of the four choices you stated, I would lean towards leasing your minerals as the other involves factors that you may not fully understand. You can read posts on this forum dealing with participating in a well but familiarize yourself fully before engaging in this type action. I would counter this $500/acre with $1000/acre and see what they say. The 20% is norm and the 3 year agreement is good. Again, it also depends where your minerals are located in Richland County and more important, the wells within the proximity of your area. If you have some good producers close to your area, your negotiating power is much greater but if your are is somewhat undrilled (risky) then the oppostite applies. Good luck in your negotiations.