Just received a rqst to lease the above to Quanah. $300 acre 3/16 royalty. This is the first offer but the leasing agent (with Paramount Services) said this is the most they have been offering. Land agent said they are planing to drill 4- 5 well.
I have asked for the following (thanks to this forum!):
Depth clause
Shut in clause
Warranty clause
No Deduction clause
Land agent said not an issue for the clauses.
I looked at the Quanah information thread from November last year.
Any guidance on if this price is good? I am thinking as I have seen here to ask for the 1/5 royalty with a lesser payment but what would that payment level be?
Thanks in advance for any help.
Bryan
Same offer from Paramount for Canyon Creek in section 25 1 south 9 east. I was told Quanah sold their interest in that area to Canyon Creek. Quanah also tried about a year ago to lease same offer through Paramount
Anyone know what is happening in that section 25 keep getting court cases on a pooing in a multi unit on several sections connected to 25
I was holding out on Quanah’s general offer myself because no specific drilling was discussed and only a lease. Then, I found out, that Canyon Creek was drilling anyway and it started in February via horizontal drilling. I received a letter specifically from Canyon Creek telling me about the actual oil drill costs. We have a friend who is involved in oil leases in Texas and they mentioned that we should negotiate for the best offer possible, so I countered Canyon Creek with 1/5 and 400 per acre. Then, surprisingly, Quanah responded to my letter to Canyon Creek telling me they were drilling already. I mentioned that I had never said no to any offer and simply wanted to negotiate. Which seemed very appropriate to me since I never signed the original lease in the first place. From what I’ve read, the oil and gas industry is enjoying the exploits of forced pooling where they can get a court order to drill on your property whether you like it or not.
But also, you “should” be able to negotiate which company you want to do the drilling. AND, should you not sign anything at all because you don’t like their terms, you will get 1/8 mandated by the state of OK(via a forced pool), versus the 3/8 they originally offered. But, I also, “am told” that 3/8 and 300 is the highest offer in the Coal County mineral rights I own. So, don’t wait too long. Canyon Creek as been going to court lately to get the authority the need to continue their drilling prospects.
Currently, I’m not comfortable with the oil and gas industry and the many ways they’ve given little or no royalties to owners while reaping the prophets. I’m not saying it’s happening here, but I’m very aware of their bad track record. Just google it. I’m certainly not an expert in all this doing research, I might buy some books, and I might get a lawyer.
Mark, Thanks for the information / insight.
Not sure what I am going to do yet.