I was offered a Lease in Township 8N Range 11E, Hughes County, Oklahoma

Hi, 1st time posting. I have the mineral rights for 10 acres of a 20 acre parcel and have been offered $500.00 per acre as a bonus and 3/16 royalty on a 3 year lease. I have no idea about any of this kind of thing and was wondering what you folks thought about this proposition. Thank you for your help.

I moved your question over to the Hughes County, OK Category where it should get more notice.

I always ask what they are offering for 1/5th. 3/15ths is rather low. If you are new to leasing, then read about the do’s and don’ts of leasing in the Mineral Help tab above. Also, you will need to negotiate several of the clauses on the first lease they send you as they will not be in your favor. You need to be really sure that you have no post production costs in the lease.

You didn’t say which section, but the poolings have ranged from about $500-600 for 3/16ths and slightly lower bonus values for 1/5th. I usually go for the lower bonus and the higher royalty as that usually pays out better over time.

M_Barnes,

I didn’t realize you sent me the 2nd response and I just sent you a email a moment ago, sorry. I am new to this and will follow your advice. The section is 24. Thank you for your help, Mike

Hi, sorry to bother you, but is the Mineral Help Tab the small green box that says Oklahoma Mineral Rights and the small gray box the says Hughes County, OK ? Now you know why I used no nothing as my username.Because I know nothing about this stuff Thank you for the help.

Look at the top of the home page and there is a blue bar that says HOME Mineral Help About and Advertise. If you don’t see that, then hit the flag icon on the left and it should reset. The Mineral Help tab has all sorts of useful information.

Read that and then come back with more questions. Nothing is stupid. We all had to learn by asking!

Also, use the magnifying glass at the top right and search the BLOGS category as it has some really good advice as well.

Thank you for your information and advice. We’re on vacation right now but I will be doing a lot of research as you suggested. I’m sure I’ll be getting back in contact with you the first week of October when I return home. I very much appreciate your help, thanks

Hi M_Barnes, Back from vacation and trying to make sense of this proposed lease. I do see where they want me to pay post-production costs out of the 3/16 royalty fund to cover gross production and severance taxes, gathering and transportation cost from wellhead to point of sale, treating, compression, processing, line loss/fuel, separating and dehydration.This seems like a loss of quite a bit of money. I inherited the 10 acre sub-surface mineral rights, no land involved, thru my dad who passed in 99’ which then went to my mother who passed in 2016 and my only sibling passed in 2016 also. The deed is still in my dad’s name and I don’t know were to start to get it into my name, any suggestions? The company who wants to do the lease said they would get it done for me. I ask in case this lease doesn’t happen. How does this work for them if we can’t make a deal? I need to have an attorney read this lease because it’s over my head. Thanks

M Barnes,

Don’t run away. I hang on to your every word of advice. I too have always been just mighty suspicious of these “post production cost”…to me the mineral owner it seems like an ideal opportunity to ‘skim $$$$ right off the top, and cover up the REAL post-production cost.’ Appears to I Leta, we can be hung out to dry over the so-called Exhibit A. part of the lease. Leta C.

If you inherited the property through a will, that will suffice to show the chain of title. If it was an OK will, then it was probably probated in the county of residence. You need to file the proper paperwork in Hughes to give them your address and which parcel of land. The county clerk can help you with the proper documents. “Sometimes”, an affidavit of heirship is sufficient, but a will is better.

Correct, you do not want to pay the PPC (Post Production Costs) The lease can be negotiated with a proper Ex A.
Seeing am attorney is wise.

Hi, you say the lease can be negotiated with proper EX A, what does the EX A mean and I was wondering what you could tell me about Section 24, Township 8N, Range 11E. Thank you

Question for M Barnes: How do I find a link to track the new four wells to be drilled on S21 & S28. My minerals are in S21/07N/10E. Trinity has been granted “RELIEF” to drill four new wells for increased density. Thank you. Leta C.

Bravo Arkoma LLC is the operator. Your leasing issue may have just been solved for you as the pooling order was posted as of October 4. You have 20 calendar days in which to pick your option. $500 3/16 or $300 1/5th.

The following documents have been filed on that section in the last 999 days. Got to the polling website and look them up. OAP

201705893 old Pooling from 2017

201704773

201704772

201704774

201806304 Pooling Important one

201807032

201807031

Check the new pooling one out and find your relative on the list. You need to send in your election before Oct 24. I send them as fast as possible, so they don’t get hung up in the mail. Send it certified return receipt. Be sure and send a W-9. And keep a copy of everything!

Here is the website from the OCC. Type 2107N10E in the location box.

http://imaging.occeweb.com/imaging/OGWellRecords.aspx

ID Form Legal_Location API Well_Name Operator_# Eff/Test_Date ScanDate
500714965 1001A 2107N10E SW SW SW NE 063248440000 DORA 3-21/28H 9/10/2018 10/3/2018
500714966 1001A 2107N10E SW SW SW NE 063248450000 DORA 2-21/28H 9/8/2018 10/3/2018
500705786 1000 2107N10E SW SW SW NE 06324845 DORA 2-21/28H 8/28/2018 8/28/2018
500705785 1000 2107N10E SW SW SW NE 06324844 DORA 3-21/28H 8/28/2018 8/28/2018
500702402 1001A 2107N10E SW NE SW NW 063248360000 DORA 5-21/28H 8/10/2018 8/16/2018
500702403 1001A 2107N10E SW NE SW NW 063248350000 DORA 4-21/28H 8/9/2018 8/16/2018
500695483 1000 2107N10E SW NE SW NW 06324836 DORA 5-21/28H 7/24/2018 7/24/2018
500695482 1000 2107N10E SW NE SW NW 06324835 DORA 4-21/28H 7/24/2018 7/24/2018

Form 1000 is the permit which has the planned tracks of the wells.

Form 1001A is the spud date (started drilling)

Form 1002A will be the completion

Form 1073 shows change of operator.

SURVEY shows the actual plat of the wells.

The new DORA wells have spud.