I've inherited mineral rights and am learning. One of the areas is Grady County OK 3-6N-5W. Recently recvd letter from Continental that they propose to drilling the Hansell 1-3XH well horizontal well in 3-T6N-R5W and 34-T7N-R5W. Letter is asking to select an Option either 1/8th, 3/16th or 1/4th (each with a cash bonus). There is no term indicated. When I handled my fathers estate he would get actual leases to sign which spelled out the terms. Would someone explain who Continental is and how they can ask to select an option without providing the terms (how long the lease is for). Also, if I don't select an Option will I be forced pool?, and would the forced pooling provide a better rate? Would I be better off to sign or be pooled? Thanks for your comments and I AM learning by continually reading all the comments posted.
CLR is very big and Active...Vickie upon review of your minerals I would say you are better off waiting for the pooling and select the 1/4 royalty and and no bonus......By doing this you dont have to worry about a depth clause as your minerals will be pooled for the formation , which the are drilling...In this instance it will be the Woodford Shale....Also you are not tied into a 3 year lease and if drilling does not occour you still have all your optioins on the table. If the probate is correct I viewed you have 1.00 Net Mineral Acres split 7 ways....To small to really bargin with in my opinion...I have been taking leases in this section for $100.00 more than CLRs going rate on the 3/16th offer...I also own acrage in 34-7-5 10 ,3-6-5...Hope this Helps........
Vickie After you select an option they will send you a copy of the lease. If you don't like it tell them what you don't like. If you can't work it out wait for the Pooling. Does the 1/4th have a cash bonus? The Pooling will provide the same options as leases in and around your section.
Thank you, this is all very helpful. So if I do not respond to the letter I will automatically be pooled?
Let me know if I understand correctly, when you are forced pooled you are not under a lease? (I also have mineral rights in Dewey Co 5-16N-14W of which I was forced pooled. I've received a Division Order from Devon, does this mean I may/will receive a lease?) (The 1/4th royalty does not have a cash bonus.) Thanks again
Vickie Did you elect an option under the Pooling in Dewey Co?
I did, it was cash bonus $1500 per acre + 3/16 royalty. I have not received anything since receiving the Division Order.
Ron McKenzie said:
Vickie Did you elect an option under the Pooling in Dewey Co?
Vickie Did you sign and return the Div. Order? On small interest I would look real close at 1/4th which would really pay off if they put more then one well per section.
Yes, I did sign and return the Division Order.
Vickie The Oil Co. has six months from the date of first production to send you a check, which should be for more then one month. Yes you will be pooled if you don't answer the letter,and will be under the pooling order.
Thank you for your help and explanations. I'm sure my questions are very basic but I am learning and understanding. Thanks again for your help.