# Lease Negotiations
**URL:** https://www.mineralrightsforum.com/t/lease-negotiations/37508
**Category:** McClain County, OK
**Created:** [November 27, 2018, 8:46pm UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508 "2018-11-27T20:46:26Z")
**Posts on this page:** 6
**Page:** 1
### Author:  [@Peg\_Valouch](https://www.mineralrightsforum.com/u/Peg_Valouch)
#### Post date: [November 27, 2018, 8:46pm UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/1 "2018-11-27T20:46:26Z")
Can someone please explain why a company enters into negotiations with a mineral owner and then decides to “shut down leasing efforts?” What is the purpose of the exercise? I’ve been negotiating with Native Exploration for 3 months only to get to the point where I’m ready to sign, and then receive an email ending it all. I’m confused.
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### Author:  [@TODD\_M\_Baker](https://www.mineralrightsforum.com/u/TODD_M_Baker)
#### Post date: [November 27, 2018, 11:14pm UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/2 "2018-11-27T23:14:40Z")
Peg:
Strange things happen in the oil patch when the price of the product drops 30% in a couple of weeks. Companies in these shale plays depend on revenue to drill the next well, and when that is significantly reduced, the first thing to stop is the leasing.
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### Author:  [@Peg\_Valouch](https://www.mineralrightsforum.com/u/Peg_Valouch)
#### Post date: [November 28, 2018, 12:44am UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/3 "2018-11-28T00:44:01Z")
Thanks for the information, Todd. It helps to understand. After all the research I’ve done, I’ll be ready the next time!
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### Author:  [@nhunley](https://www.mineralrightsforum.com/u/nhunley)
#### Post date: [November 28, 2018, 4:16am UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/4 "2018-11-28T04:16:08Z")
Todd’s right, lots of things can lead to this. It may be that the operator has enough acreage signed in the Section to pool it and they want to save broker/acquisition costs from obtaining any more acreage, especially if the mineral owners may be attempting to negotiate higher bonuses. It could also be that they had results come in from a test well that they didn’t like and they’re cutting their losses. It could be a hundred other things and a mix of them. Once you’ve determined that you like a particular offer, the sooner it’s executed, the better, so there is a lower likelihood of something unforeseen happening.
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### Author:  [@Joyce\_Sills](https://www.mineralrightsforum.com/u/Joyce_Sills)
#### Post date: [November 29, 2018, 12:30am UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/5 "2018-11-29T00:30:19Z")
Where are your minerals located (Section, Township and Range)? My family has minerals in Section 30, Township 6 North, Range 3 West, and Native Exploration has an application to drill there but it’s been dragging on with OCC because there’s a couple of protests from other companies. I’m just curious about them as a company and whether your minerals are close to ours.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 6:04pm UTC](https://www.mineralrightsforum.com/t/lease-negotiations/37508/6 "2025-01-11T18:04:09Z")