Lease Terms

Anyone dealing with United Land Company regarding lease terms for mineral interests in Section 2, T6N, R9E in Hughes County. They have filed with the Corporation Commission to force pool Section 2. If we can't agree on lease terms I'm sure I will be forced to lease. My questions is if I am forced pooled can I use the lease form I want or will I have to use United's lease agreement? I appreciate any information regarding this issue, thank you.

Virgil Barksdale.

P.S. I've attached a lease form I would like to use.Oklahoma%20Oil%20and%20Gas%20Lease%202016.doc

Virgil, great question. If you are force-pooled the terms are governed by what’s been set out by OCC. It does protect your deep rights but other favorable royalty owner protections are not covered. Use your own lease with favorable terms for you if at all possible. I just received 2 certified return receipt lease offers from McDonsld today and had earlier calls from Corterra. I guess I better get
on it if pooling is near.

Thank you for your response Stephanie. Silver Creek Oil & Gas filed an application seeking Horizontal Drilling and spacing units for Section 2, T6N, R9E on April 25, 2017 and the hearing will be held on May 23, 2017. My understanding is that once the application for the drilling and spacing unit is granted and the applicant has failed to lease all interests in the spacing unit the next step will be to force pool the hold-out mineral interest owners. Is that correct?

That is correct. Once the pooling notice is posted, you had better hustle if you want your own terms. Make sure you get NO POST PRODUCTION costs. You do not want any lease terms that charges you for any marketing, transportation, compression, dehydration, etc.