Hello all...I am also a newbie both to this forum and to the whole oil/gas leasing business. I am looking at various tracts that my mother-in-law owns in Williams County. She just received a lease extension offer from Bakken Oil (for XTO Energy). Location of the tracts are 159N-96W sections 26 (2.5 net acres) and 27 (7 net acres). There is an existing lease in place from XTO for this tract that expires in January 2012 and they wish to extend the lease for another 3 years for $1,200/acre with 1/6th royalty. Here are my questions:
1. How do I know if these tracts belong to same spacing unit or not? Is there some website or public place to identify the spacing units?
2. Assuming each belongs to separate spacing units, it is my understanding that it is best to obtain separate leases for each tract (Section). Correct?
3. Is the offer of $1,200/acre seem reasonable for this area? As for royalty, reading the forum would suggest I should go for 20% (1/5th) instead of 1/6. Correct?
4. Does anyone have experience dealing with Bakken Oil /XTO on lease terms? Since this is an extension, what are odds of being able to negotiate better terms?
5. The lease includes a pooling clause. I'm not familiar with how pooling works, but what little investigation I've done, it appears that pooling is not to the advantage of the MR owner and such clauses should be deleted. Is this correct? Are there any circumstances in which pooling also is to benefit of MR owner?
6. Lease also includes a warranty clause whereby lessor agrees to defend the title, etc. My understanding is that this should also be deleted from lease.
7. Can anyone recommend a good attorney in Williams County (or point me in right direction) who is truly an expert in Mineral Rights leases specific to Williams county area?