Received a phone call a two months ago that my mother - dead now 18 years - was the owner of mineral rights to property in Oklahoma. Called my brother in MA and he didnt know anything about this either. Now this RDT Properties has sent me a lease to sign, him too, but it is so confusing. The guy who called said we own the mineral rights, but the lease talks about placement of pipes, use of water, gas, oil free of cost, placement of the well 200 feet from the house or barn now on said premises...etc. Should I get a lawyer - this is for 2.428 acres each - not exactly a fortune that would pay some huge legal bill! What about the poor folks that own this land and their home and barn - what gives me the right to let an oil company come and drill 200 feet from their house - can't they sue me?
I live in Florida and this is somewhere in Oklahoma!
Help! I have been reading and rereading this for a month! They want to pay me $243.00 then $1 a year for a 3 year lease with 3/16 royalty. I know nothing and sure could use a bit of knowlege - any would be appreciated!
Ask them for 500 per net mineral acre and a paid up Oil & Gas Lease and no less then 22% Royalty. The 3year lease is normal. Obivously a landman is contacting you and your brother because you do own the minerals. Its ok. They did their homework, researched title, court records, probates, etc to find out the correct ownership. And no the surface owner Can NOT sue you. They unfortunately bought the property subject to prior mineral reservations. And it doesnt necessarily mean they are going to drill 200 feet from their house. The 200 ft clause in the lease is very common. It simply means if they do drill they have to say 200 feet away from all structures. Also the Free Royalty clause in your lease is good. No its not a scam. Remeber the money is in the ground not the lease bonus!!!
Eric
Thank you so much for your reply! I cannot tell you how much better I slept thanks to you!
Will proceed with caution, but not with guilt!
Eric Wayneright said:
Ask them for 500 per net mineral acre and a paid up Oil & Gas Lease and no less then 22% Royalty. The 3year lease is normal. Obivously a landman is contacting you and your brother because you do own the minerals. Its ok. They did their homework, researched title, court records, probates, etc to find out the correct ownership. And no the surface owner Can NOT sue you. They unfortunately bought the property subject to prior mineral reservations. And it doesnt necessarily mean they are going to drill 200 feet from their house. The 200 ft clause in the lease is very common. It simply means if they do drill they have to say 200 feet away from all structures. Also the Free Royalty clause in your lease is good. No its not a scam. Remeber the money is in the ground not the lease bonus!!!!
Eric