Leasing in sect. 7, 18 & 5 - RedSky?


Please advise any leasing terms for sect. 7, 18 or 5 in McClain county. What do you know about RedSky?


What township and range are you looking to lease these sections in?


RedSky is a longtime non-op in the basin. Really good and honest guys.


Red Sky is usually leasing for someone else. They have been around a long time. If you give the Township and Range, it will enable a more accurate answer as to current pricing.
You still need to get a negotiated lease and not sign the first thing put in front of you. Depending upon their client, some are easier and some are harder to work with.


10 acres sect 18 T5N R1W McclAin Cty. Red Sky Offered $500/ 3/16. Just received notice of hearing. I have not signed a lease yet. Waiting on a reply from BP about a question I have. Suggestions for lease amount. I don’t want to be pooled.


Most recent poolings nearby have been in the 150-350 range @ 3/16. I suspect Red Sky is leasing for BP, they have in the past. BP is the one with the pooling application. If those things are correct, the pooling should be for $500 minimum.

I have to ask why are you against being force pooled?


Rick: good answers for those who inquire. I just posted (I think) an inquiry and would like your thoughts if possible. " I have received an offer from two agents working for Redsky who is leasing for BP in S11-T6N-R2W. BP has formally proposed drilling the Stark well in S11. They have offered $500 per acre and a 3/16 royalty. They say they are about to begin the force pooling process. All understandable. However they are silent when I ask what the pooling order will say about mineral owners who choose to go non-consent. What will the back-in penalty be (usually 300%). I have a small interest and have been in the business for 50 years and think taking the risk might be better than a small interest reduced even further when I lease. BP will amend the lease to contain earn to the depth drilled clause. they have said that the bonus being paid for leasing further to the west in McClain County are higher but 500 and a 3/16 is the market in the eastern part of the county? I figure the price might go up to avoid me going non-consent. They have sent a copy of the AFE and invited me to join in the drilling of a proposed $7 million well but haven’t sent the geology. any thoughts…thank you. David Hawk Boise Idaho but have been in allphases of the industry for almost 50 years.


Any of the carried participation I’ve been aware in Oklahoma has always been an agreement with the operator outside of the forced pooling states. I do know many other states have a non-consent process that allows that.
Here is a couple of recent sample pooling orders in offsets to yours.



Rick: thank you for the quick reply. A quick look at the pooling orders doeswn’t seem to confirm that BP has to show their seismicand geology for this particular well. i could see having to sign a non-disclosure and drawing a mutula area of agreement around the 640 but if a mineral owner wanted to participate rather than lease then BP should have to disclose more geology than an AFE for the well. Especialy if one of the standard pooling clauses is NOT the right to go non-consent and then back in after some percentage of payout. The non-consent clause in pookin orders is standard in a number of other stateswhich probably causes a number of wells not to be drilled. Colorado is even worse you can get a free look and then decide after the well is completed to pay your share and go heads up just like you took the risk even though you didn’t. Just thinking for a small interest it might be just the participation risk a mineral owner would want to take rather than just a few dollars and a tiny interest if the back in is not too high…ie 300%.
I appreciate your thoughts. Will we get noticce of the hearing for the force pooling when it is on the docket?


Every state is different. I have never seen a carried interest on a pooling application or order in Oklahoma, but I won’t rule that out. But we have a couple of properties that have documented “carried interest until payout plus 200% penalty” from the late 80s. I don’t remember seeing actual documentation on how that happened however.

Be careful what you ask for. What if the well produces just long enough for it to get past the penalty period and transfer 100% WI to you. Then you are on the hook for plugging operations??

Yes, you will get notice if you are found in ownership and they have current contact info for you. Make sure that county clerk records are up to date.