Received a lease offer and unsure how to evaluate it’s merits. There are 4 options, ranging from bonus of $1,500 per nma, and 1/8th royalty for 3 year paid up term to no cash and 1/4th royalty for 3 year paid up term. Also don’t understand pooling. Not sure how many net mineral acres in this tract. Sorry for newby questions. I am successor trustee and have not had to deal with this previously. Are there resources I could read or should I have an attorney review and advise? Any help appreciated.
Did you receive a pooling order or just a well proposal with offers to lease? If a pooling order you have 20 days from the date of the order to respond.
It does not mention pooling. It is a lease offer with four different options for bonus and royalty percentage.
89 Energy had that section and had wells planned. All were dismissed in late 2019. Interest is heating up again. Many of us would take the higher royalty choices-either 1/4th or 1/5th. You do not have to respond to the letter. You can either lease or wait for forced pooling. In general, the draft lease is mostly in the operator favor, not the mineral owners, so it is advisable to get an oil and gas attorney to review as the decisions may affect your family for decades. The Oklahoma Corporation Commission has a nice document explaining force pooling. Good to get familiar with their website. It is a wonderful resource for free.
Imagine the offer is from Potts Land as I got one too. Not sure who Potts is buying for.
Yes, the offer is from Potts Land. I read that the royalty would likely be lower if I wait for forced pooling. I agree the 1/4 or 1/5 royalty seems more attractive but a lease bonus seems like a good idea as well since there is no guarantee of production.
Thanks for recommending the article on forced pooling.
I am not sure how many net mineral acres we have, but seems this is important info in terms of evaluating whether the bonus and/ or royalties are being calculated and paid correctly. I am looking to see if it is listed somewhere in our papers.
Not sure where you read royalty might be less. In this area there will be a 1/4th royalty option when a well is formally proposed. Generally speaking, bonus offers greater than what’s offered under a pooling can be had from non-operators wanting in the unit, depending on who the operator is. You need to determine how many acres you own. You can do that through research at the county clerk’s office.
Todd, I asked Potts and Black Mesa is who they are representing. The article I read that mentioned a lower royalty with forced pooling was on a website offering various services including appraising mineral rights. I can’t recall the name right now but I’ll try to find it.
I’ve been looking at ok county records and finding some documents but am a bit puzzled. There are tracts of land we’ve had oil and gas leases on previously including this one, but it must be associated with my dad’s name through someone else, i.e., inheritance as I am not finding a link.
Also I’ve seen a reference to number of acres but not to our undivided interest so not sure where to locate that. Any ideas?
The online information only goes back so far so you have to get the rest of the information from the county clerk’s office or hire a land man to do the research.
If & when there is a pooling, there will be options similar to Potts’ letter.
Some of my acreage in this section is HBP and some is open to lease.