My family has been contacted to lease our mineral rights. The letter says they represent a subsidiary of Occidental Petroleum Corp.
I don't believe what this company is offering is fair market value and not sure who the company is. How can I find out.
Flora,
Lease terms are not public information, so it is difficult to know if an offer is competitive. You might start by posting what you were offered and where your minerals are located; State, county, and legal description.
Some folks on this site might be able to offer an opinion based on their location. Good Luck.
Thank you I posted the terms they sent me so far.
Eastern MT said:
Flora,
Lease terms are not , so it is difficult to know if an is competitive. You might start by posting what you were offered and where your minerals are located; State, county, and legal description.
Some folks on this site might be able to offer an opinion based on their location. Good Luck.
Occidental is an old line company.
Would look for alternate producers. OXY swings and misses when others in the same fields seem to get better than average.
But try to make sure that you end up leasing to somebody who will actually drill the well and not just hang on to your lease hoping to "flip" it to a real producer. In Texas, one can go to the Railroad Commission Web site and query all the wells that a particular producer has drilled, with a time frame (for example, "in the last three years"). When I was leasing in one part of Texas, I was getting resistance from one community, who kept regaling me about the high bonus offers that a competitor was offering. I had never heard of that company before, so I went to the Railroad Commission Web site. Sure enough, this other company had NEVER drilled a well in the play, and had only been in existence for about a year and a half. Armed with this information, I was able to persuade many Lessors to sign with me because my base client, a large, established producer, had an extensive track record of drilling successful wells in that play.
Flora,
Can you tell us where you posted the offer you received? I don't see it here is why I'm asking.
Wes Luke