I leased to ELA when NFX drilled the Williams 1-19 in 2/3. I have also leased to Jackfork for Continental, but $500 is far below any amt I have been offered since activity picked up in this area.
My experience is Energy Leasing leased ours for Newfield and Jackfork leased ours for Continental. They seem to be the two companies that are doing the most drilling in these parts. Both gave us $650. an acre before we were aware of action down here.
The Co.s drilling and leasing the most are the ones who have the most to gain by keeping the amounts paid for leases down. They may be leasing several hundred acres per section and when they raise it for one that can affect what they are ordered to offer in the pooling which will increase their cost for that section and the sections around it. If I was trying to lease 5 acres or so to take a working interest with I would not have a problem paying a little more for the lease . Income from a well is where I hope to make my money, not by saving a few hundred on a small lease. If I was leasing a few hundred acres it might make a difference. Taking a W.I. with an operator that keeps the cost down would save me more then saving a few hundred on a lease. Also if I was to pay more for a lease what I paid could be used to help set the bonus elections offered in the pooling for the section which would help the royalty owners . So get your best offer where you can and donāt rush into it would be my advice . Continental just started leasing in 1-3 in Jan.
Charla, Blatant solicting is a no no but there is certainly nothing wrong with making a friend request in order to have a private conversation.
R.W. as you know I am often the first to object to unethical behavior. I have a pretty good feeling about Darlaās integrity.
Just to clarify: My remarks are as always opinion only and do not represent this forum.
Well said Robert, you are a Gentleman as always.
Has anyone scene any activity on sec.7, 3N, 4W? There was a hearing last Monday. Was told a well should start in the next month or 2. Was wondering if there is already a pad?
I was just asked to lease my mineral rights in sec 7, 3N, 4W. I only have 1.11 net mineral acre in this section. Offer was $2000 per net acre at 3/16th, or $900 at 1/5th. I usually try to get no money upfront and 1/4th, but Iām not being offered that here. Any thoughts?
James,
Most but not all of the pooling orders in 3N-4W the last year have offered a 1/4.
I guess my biggest question would be, why lease at a 1/4 and tie up the rights for 3 years with no bonus. Why not wait on it to get pooled and then take the 1/4 election and it is like a 6 month lease. It would also release formations above and below producing formation in the pooling order. Iām not sure you can get a lease better than the pooling order provisions, but I could be wrong.
The pooling application has started and the hearing date is 4-8-2013. Iād go to the hearing and ask for a 1/4 if nothing else.
Rick, there was some type of hearing on 3/25. Do you know what this was?
Usually shortly after the pooling order is issued. However they may delay asking for it if they donāt have a rig commited.
Thanks, Rickā¦slowly learning.
James, we leased ours last year for $2500/ac. So your offer is in the ball park. I spoke with the Jackfork landman last week and he said a well should start in a month or so.
I donāt see your name on the pooling order.
Are you a heir on rights that have not been probated?
Who is the lease offer from? They may not be representing Marathon. The may be looking to flip the lease for a quick buck.
You might even call the attorney listed on the application and ask if a 1/4 is being placed on the table.
You can also call the the OCC. Number is 405-521-2613 Case number is 201301851 and ask.
Here is the application
http://imaging.occeweb.com/AP/CaseFiles/OCC4357870.PDF
If it is not in your name, Iām not sure what rights you will have in the election period. Regardless you can still lease during the election period regardless. (20 days after the order)
The location exception and spacing cases appear to have been heard on 25 March.
Ahh. Gotcha. We got a huge packet from attorneys, but wasnāt sure what it was. Thanks. So when will the permit be issuedā¦after this pooling hearing?
Rick, I donāt live in the area, so going to the hearing is out. Is there another way to get in on the pooling other than going to the hearing? Thanks, Jim
Chris, It is rather difficult to participate in a hearing by phone. I believe you would need to send a letter for an entry of appearance and then they call you from the hearing and you say what you want to say. Then the lawyers/judge may ask you a few questions and then your disconnected. I have never been to a hearing where you were able to listen in for the entire hearing, but I have testified by phone and that was how it was done. Some of the hearings are in Oklahoma City and some in Tulsa, so I only appear in person if they are in Oklahoma City. Your best bet would be to contact a lawyer that does Commission work and have him/her file what needs to be filed on your behalf and to make sure you are called when you need to be. There is a lawyer out of Norman that I use who used to be a judge at the commission during the 70ās. Let me know if you would like his name.
Iām with Rick, once the operator has filed for pooling, I generally go with the pooling rather than sign a lease because the terms of the pooling are about as favorable as you will get & the bonus options are generally as favorable as were paid to anyone who signed a lease, so you are getting the same bonus for a 6-12 month pooling that others got for a 3+ year lease (I gather not always but generally).
Also, it is my understanding that you can request to participate in the hearing by phone. I made one attempt at this recently and was unsuccessful ā the attorney never responded to my request which probably means you need to make the request in some formal way so they have to respond.
Just to report back to the forumā¦ The lease offer was withdrawn since our minerals are held by production already which what I suspected (section 1 - Garvin). Thanks for the information however.