Hi — We were recently offered a lease in Section 5, Township 1 North, Range 2 West, Garvin County, Oklahoma. Is there a resource showing lease bonus rates in this section? I checked Oklahoma Mineral Registry; however, there are no definitive lease bonus rates available. Also, are there any general opinions if it’s better to go with 1/5 or 1/4 royalty? In the past, we have signed leases where no active drilling has happened in the lease period, so we generally go with 1/5 royalty and smaller bonus as a hedge. We have 16 net mineral acres in this area. Thanks!
Lease bonus amounts are not generally public. The closest that you can get is a pooling order in the eight contiguous sections within the last year (if there is one, not in this case).
Ok Mineral Registry is a for-profit group, the landmen use the county courthouse for their records.
My personal opinion (for what it is worth) is that I prefer a 1/4th royalty in an active area because that gives 5% more in royalties over the life of the well or wells. That can add up nicely over time. If the area is totally wildcat, then I might go with 1/5th. The bonus is a one time event-royalties can be for decades.
There are at least four agents leasing in that section. 1/5th is the highest royalty that I can see filed so far. Some areas do not warrant a 1/4th. It can depend upon if the operator is drilling a conventional well or a horizontal well. Good question to ask the leasing agent-who will be the operator and what type of well.
I have been contacted about purchasing my mineral rights, Section 8 , Sectin 6, Section 28. Are these active areas?