Currently, I have an offer to lease my minerals in Payne county, Oklahoma. These minerals have been leased consecutively by different landmen/oil companies over the past 6 years. I know there is drilling activity nearby and they are producing oil. So, since I have this current offer is it okay for me to solicit another landman to bid his best bid and see who offers the higher and/or better lease?
Pam, yes it's not only appropriate to solicit other lease offers, sometimes that competition will earn you significantly higher lease terms. You want to compile a list of companies who have shown an interest in your area. I don't have an interest in OK so I'm unfamiliar with the specific layout of their state O&G website but this would be the general approach for your research. Go to the state site to seek the following (some will likely be via links from the State's site);
A) Find your minerals on their map. Note all companies who permited or drilled near yours.
B) Find 2011/2012 State Lease sales. Again note all companies who leased in your area (& rates).
C) Look up Federal Lease sales (BLM) again noting those who leased in your area (& rates).
D) Then start calling those companies to ask if they are interested in leasing your open minerals.
Have your legal description in hand, including your net & gross acre amounts. Be prepared for some telephone tag as company receptionists pass you around to find the proper party. This approach may require a day or two in effort, yet it may generate one or more additional offer for you. Good Luck.
Thank you very much, Eastern MT. I have no problem with researching these. I just didn't know if getting a competing bid was normal. Thanks again, Pam.
I have an interest in the NW/4 less 55 in SE corner of Section 35, T18N, R6E in Payne. Does anyone know of any action on this area?
Pam, I don't know if getting a competing bid is "normal". I suspect it is not something most mineral owners ever do. In fact, the typical M.O. probably just takes whatever first offer is shown them, without even attempting to negotiate better terms with that company.
Seeking competing bids is certainly an acceptable practice. It is frequently done, though only by a minority of mineral owners. Once you've received any offer to lease I'd encourage all mineral owners to do it. If you can list five or six companies already active in your area there is an excellent chance to generate at least one (if not more) competing offers. This is not guaranteed. Yet competition is your friend and will probably result in better terms. Good luck with the project, hope you get a great deal.