My sister and I were contacted by a landman in the past couple of days about minerals interest that is not currently leased. Verbal offer via phone was 3/16 with $1200/acre bonus (3 years) or 1/5 with $900 per acre. I asked about 1/4 and was told that has not been authorized. Don't yet have the written offer. Apparently this is planned to be horizontal well. Anybody have advice for us? I remember reading on this site about depth clauses, and a few other clauses that might be beneficial to us. I just cannot seem to find them now.
In general, the first offers are lower to the final offers, but not always. You do need to be careful about the lease clauses. You want to make sure you have no post production charges, a depth clause, limits on the shut in time, a commencement of drilling clause, and striking a few clauses they might try to put in there. Once you get a written offer, you can ask for help. Always get offers in writing.
Well I have a written offer of 1/5 with $900 per acre bonus. Also had offer over phone, but never received follow-up written offer of 1/4 with $300 per acre, or 1/5 with $1000 or 3/16 with $1500. Oddly enough, when I attempted to call what I believed to be the phone number associated with that call, I get the message that the number is not a working number.
Perhaps it's time to seek out a good oil and gas attorney. Any recommendations for the Purcell, OK area?
Eagle Exploration just filed the Location and Horizontal cases with the OCC. 201700795 and 201700794. Pooling will be shortly, so you need to get a good lease hammered out now or wait for the pooling. Pros and cons to each.
Friend me if you want to walk through the clauses. Time is short. The offer they send first will need some negotiation.
Was it Eagle exploration out of Tulsa.And if so, was the land company RK Pinson.The reason I am asking is I received the exact same offer today In Sec-2-6N--4W.I
Just curious.This is my first offer,so I will be waiting for better offers.
With leasing, you get exactly the clauses you want, but you can generally only get a deeper depth clauses, not a shallower one. The time frame is usually three years, but that can be changed. The important clause in the lease is the "no deductions" clause. Be careful that they don't put a "however" back in it because that will open the floodgates for deductions. You do not know if you are getting the "highest" offers in the area.
For pooling, the time frame is quite short-either 180 days to drill or 365. If they do not drill in that time frame, then you will be free to lease again, or they will have to pay a second bonus if you are lucky. The pooling has a very definite set of zones listed, so essentially and upper and lower depth clause. You can lease outside of those covered zones. Theoretically, you are supposed to get the highest offer by that particular company within the eight contiguous spacing units. (However, they do not have to tell the judge if they made multi-tract deals which are usually higher, and third party lessees may be making higher offers.) Until recently, force poolings were gross proceeds. It is pretty fuzzy on that now. Seems like I am getting deductions taken out on some leases. The legislature needs to clarify that or some lawsuit. No shut in clauses on a force pool, so that is pretty fuzzy as well in my mind. Pooling is not all that bad. Many of the trust companies have that as their standard choice. Just make sure you answer in the 20 time limit or you will be assigned the most onerous of the bonus/royalty pairs.
My family also owns mineral rights in Sec 2 McClain County, 8 acres. We recently received a written offer to lease for $800 for 3 years and 3/16. We only have a few days to review the contract, Iām hoping to hear some advice from some of my neighbors in that area.
I own mineral rights in Sec 2 R6n3w that current lease expires on 4/18. Was told by ACE energy (in Dallas & in OKC) that they would give me same terms as those in 22 I just leased to them. My offer from ACE for 3/16 was $1500/acre, $1000 for 1/5. I prefer 1/4 for the long term payout usually, if possible. Of course, little or no production would mean larger bonus would seem preferable. Want a phone number for Chase Lake with ACE?
Carol, we need the whole section-township and range. I am assuming you meant 6N-3W, but we don't know and your offer is so different from the one from ACE, we can't help as efficiently. Don't sweat the time frame too much. Scare tactic.