Received an offer from Chisholm Oil and Gas Co. (Zenergy Inc) out of Tulsa, Ok regarding an offer for drilling of Gas and Oil on the above listed property. They had their attorney send out a pooling order. Any info available about this parcel?? Understand they want to construct a drill by Aug, 2018.
Also, how can I find out how I was deeded or who left the rights to me without paying an arm and a leg??
Drilling by Aug 2018 is a bit optimistic considering they haven’t filed the pooling application yet. They just filed spacing and location exceptions. Historically 3-5 months for them to have an order issued after the application. Then another 5-7 months for them to Spud a well after a pooling order is issued. That is based on wells in the same township.
Based on surrounding poolings, it looks like it should pool for about $1500 and 3/16 if that helps.
Sometimes the leasing landman will give you the most resent transaction making you the owner.
You might make a deal in your lease with them giving you the title chain info that directly affects your property. That would be the cheapest way. They already have that information so it would not “cost” them anything. They may not want to release it right now, but you can place it in your lease to be released on Well Spud. This information might be valuable enough for you to take a few $ less with a company willing to give it to you.
Based on what you have stated in your question, it sounds like you might not have marketable title. I’d strongly suggest putting back some money to cure any potential title issues from any lease bonus money you obtain. It could be needed to place you in pay status when the well starts producing.
Thank you for valuable insight and information. They did offer $1600.00 and 3/16ths. I will try to negotiate the title chain with them because I would like to know how and by whom it was passed on to me’ Not sure what a marketable title would be. Land ownership or mineral ownership. Thank you again
Basically when you say you don’t know who left you the rights or how it was deeded, it was likely not actually deeded to you. Or it was not actually passed to you through the probate process.
Marketable title is a title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer.
Mineral rights are simply one piece of the entire property (commonly called fee simple). Any part of the rights can be sold/transferred separately. It is common to sever the surface rights from the mineral rights, but it can be much more complicated than that.
See http://www.mineralweb.com/surface-rights-vs-mineral-rights-in-oil-gas-leasing.
I realize you are not trying to sell it, but you can pretty much use “defensible” in place of 'marketable". http://www.okbar.org/members/BarJournal/archive2011/MarArchive11/obj828Epperson.aspx
I’m not an attorney but I have seen many instances where someone is in the same situation where you seem to be. They are contacted wanting to lease property they did not know about. They lease the property, spend the money. Then when the well starts producing, they are placed in suspense until they cure the title issues. Or worse yet, occasionally the final title opinion shows they don’t actually own an interest, it was all a mistake and now they want the money back.
It is possible that you can do things to your advantage BEFORE signing the lease. Once the ink is on the lease, you are bound by it. Even if you didn’t understand what you were agreeing to.
Again great advice and good reading. If ownership is verified, could their be a possibility of other mineral rights in different locations that I might have rights too?? Again would be nice to find out where this first offer came from. Again Thanks
I also want to caution you to at least find out more about your ownership before entering into a lease. They should give you enough information so you know you are the correct recipient of the ownership. They may be crediting the wrong unlocatable “John Doe” who happens to be your grandfather. Or it is the correct “John Doe” , but you are the wrong “Jane Doe Jones” and “John Doe” was not your grandfather.
Ask questions, they should provide some answers.
I was offered 3000.00 per acre to sell my minerals in 7-20N-6w 6 days ago. I was sent a W-9 form to send back for a pooling signing bonus of $32,000.00 for my 40 acres in 8-20N-6W. I had a prior lease for a Horizontal well that was to expire on 6-17-18 if they hadn’t started to drill. I think they started around 6-1-18.
Correction 12-20N-7W instead of 7-20N-6W
In my opinion, all first offers are too low. They just want to see if someone will bite.
Chaparral permitted the Spyglass 2007 1LMH-12 well on 6-26-18. If they did not spud by the expiration of your lease, then you are free to lease again. I see not spud report for that well yet (since the permit is today!) Depending upon where your acreage is, are you held by the Stutz 1 well? If it were me, I would not sell.
Find out who the landman is who did the title search and ask for a detailed chain of title that he used for the title opinion.I had one do this for me on a place where I have minerals and he sent me what I was after.It will show your interest in the property in question regarding minerals.If you have other properties, they will have to be researched at the courthouse to check mineral interests.I helped a fellow out last year that lived out of state who didn’t know where to go.Let me know if I can be of further help.Bob bhunter772@gmail.com
I went to the court house and found my the deed where my grandmother and grandfather were deeded the rights. The rights were passed onto my mother and aunt when they died. My mother passed away and passed the rights to my sister and I. However, I couldn’t find a deed with my sister’s name and mine. I have the death decrees of grandma giving my mother and aunt the rights . I have my mothers will giving my sister and i the rights. Is that good enough?? I did get copies at the registar of deeds.
Each company has their own policy, but the probate is usually sufficient. However… if she lived out of OK and her will was probated in another state, then you have to have the will probated in OK for it to be accepted.
Thank you!! She was in oklahoma