Leasing Mineral Interests in T6N-R9E-Sec 2

A few months back I was in negotiations with McDonald Land Services (Corterra) and United Land Co. (Silver Creek) over bonus payment and lease terms then after my last submission for terms they stopped communicating with me. I have now received two notices of continuance for Corporation Commission cases one for pooling and one for Horizontal drilling and spacing in Section 2, township 6 north and range 9 east. Has anyone else receives notice of the continuances and if you are still negotiating with either land company? If so can you tell me the going rate per acre for bonus money and royalty. The last offer I received was $400 per acre at 3/16ths royalty. If forced pooled are lease terms still negotiable? If not who sets the lease terms? I would appreciate any information regarding these issues, thank you.

Virgil R. Barksdale

Would you mind sharing what they offered in this section?

The last offer was $400.00 with 3/16ths royalty.

In a forced pooling, the OCC sets the terms based upon the offers in the eight sections contiguous to yours over the last 12 months. No negotiating on those terms. However, you have from now until about 10 days after the pooling order is posted to negotiate with anyone else who is interested in leasing. The pooling order gives you 20 calendar days to make your selection of lease/bonus pairs. If pooled, I usually take the highest royalty and the lowest bonus as it usually turns out better in the long run if there are multiple wells.

There are several companies leasing in that section, so if you only have one offer, there are more to be investigated. Corterra, Silver Creek and Antioch seem to be active.

Thank you for the information on forced pooling. As stated in my post above we had come to agreement on bonus and we were discussing lease terms as I did not care for their lease agreement as it was too broad and ambiguous in its language without specific details or time limits. They would not agree to "No Post-Production Costs". I found a Texas lease agreement (https://www.earthworksaction.org/files/publications/Texas-Sample-Model-Gas-Lease_201106.pdf) that is very specific in its language and addresses all issues that need to be considered. I was told I could not use that agreement in Oklahoma. I would ask someone with more experience in mineral leasing agreements to review the lease agreement website and explain why that lease agreement can't be used in Oklahoma. I understand that there may be some clauses that may be contrary to Oklahoma law, however a simple statement in the agreement can state that: "Oklahoma law controls the lease terms and if any clause or language within this lease agreement is ruled invalid or void such invalid or void clause, provision or provisions shall not affect the whole of this instrument, but the balance of the provisions shall remain operative in full force and effect." My concern is not so much in the bonus paid as I am in protecting my rights and interests with the lease terms regarding drilling and production and royalties. Maybe if we as mineral interest owners form a group, construct our own lease agreement, and demand that lessee's use our agreement. I appreciate any and all information regarding this matter.

Nice concept but it will not work. The law in Texas and Oklahoma is completely different, interpreted through completely different lenses and that language would cause all sorts of trouble.

Every lease is potentially different, so a group lease is a nice idea, but would not suit everyone.

If you want help on a better lease than what you have been offered, friend me with the blue icon and we can chat.