Tim,
I hope you meant that you got $1,000 per acre for a lease and not your minerals.
I have used several attorneys in OK City and have always been happy.
He also got me $1,000 an acre on my minerals in Kingfisher County!
Debbie,
I wish I had been as smart as you are in asking questions before I signed a lease. I would have the gross production clause in there for sure. I would have language that all the oil and gas from the “mouth of the well” be metered or measured by industry standards before it is commingled with any other production. I would include language that gives you access to your lease with the landowner’s permission. I would include language that gives you access to all production information from your well. I would include language to have your well site, (if it is on your land) inspected by the SP001 standard. Then of course, I would try to get the highest percentage of bonus, 20% is the highest I have heard of with somewhere around 300 to 500 per acre depending on how close good wells are.
I feel overwhelmed trying to get the best lease I can. I am going to talk to one of the land men tomorrow but I feel like I don’t understand everything well enough to get the best bonus and terms. I wonder if there is a sample of a lease that I could follow. I ordered the book that Rick suggested. My cousin used to do the leases for the family but he passed away and it has fallen to me. Oh dear.
Robert,
One more thing that we need to add to gross production clause is that our oil/gas cannot be sold to a sister company for a lower rate. I have seen some of my oil being sold for as much as $10 bbl. lower than others on land joined it, but by a different company. When I ask why, it must be the grade, when I tell them it wasn’t they couldn’t tell me. After a lot of checking, I found out it’s a sister company buying it. Didn’t put anything in my lease about that as it’s an old lease.
Also, the oil should be graded at the wellhead, not after it goes into the lines. I already have 3 pages of addendum and now the oil companies are just drilling around my farm. Yet, I am being told they can only drain from 150 ft each side of the perforated pipe. Yet in ND, they are drilling 640 feet in order to drain. Sometimes it is wrong. But, as mineral owners, we are getting the shaft each day and not much we can do. I’m really tired of taking oil companies to court in order to get what my lease says.
Debbie,
You may want to turn it over to an oil & gas attorney to get you the best deal if you haven’t done this before. I have been leasing for years and I always have my oil & gas attorney look over it to make sure I didn’t miss something. Once you sign it, it may be for life. And there are lots of big mistakes made daily. I just got a check where the oil company took out over $900 for deduction, yet my lease said, no deduction, so they are going to send me a check. That would add up over the year. It has always paid to have my attorney look at it. Don’t use a general attorney, there are a lot of good ones, but an oil & gas attorney is like going to a spec doctor who only works on the heart. There are also some good people on this site that are land managers. I haven’t used any, but they do sound like they know what is going on and do keep in touch with the going rate in the area. I wish you the best.
Debbie, I second what Virginia said. It will be well worth the money. I use Ralph Harrison at Harrison/Mecklenburg in Kingfisher. He negotiates leases every day and all the land men know him. He will get you the best deal, make sure the lease is solid, and you will be paid very quickly. His number is 405-375-6484 http://www.hmlawoffice.com/ Tell Ralph I sent you. He has done work for several folks on this site.
Here’s University of TX and Michigan State leases some of you might like.
http://www.utlands.utsystem.edu/forms/pdfs/LeaseAgreement44.pdf
and a lease primer.
and this is very long, but very educational.
Logan: Devon Energy Production Co., LP; Brian 4-18N-3W No. 1MH Well; SW1/4 SE1/4 SE1/4 SE1/4 (SL) of 04-18N-03W; 604 barrels oil per day, 520,000 cu-ft gas per day; TD 10,240.
Devon Energy Production Co., LP; Brian 9-18N-3W No. 1WH Well; SW1/4 SE1/4 SE1/4 SE1/4 (SL) of 04-18N-03W; 244 barrels oil per day, 429,000 cu-ft gas per day; TD 10,996.
Oops, yes, $1000 for the lease. I would be kicking myself hard if I sold minerals for $1,000 an acre!
Sir Ron Von, I concur.
Wow I haven’t heard “I concur…” since my days on board of a US Navy Destroyer that went all over and around the Persian Gulf, Indian Ocean, in and out of the Suez Canal, all ports of East and North Africa, all over East and West Mediterranean ports and all the Greek, Italian, and Spanish Islands. What was my favorite? Well, I was single, young and full of piss and vinegar and so I have to admit it was Barcelona. Concur? I forgot all about that word, Martha, until you just wrote it.
Nothing in particular for 7-17N-2W but the general area is running about $725 3/16 a little to the south. A horizontal well is planed in section 28.
At this point it should be reminded that the very worst thing anyone can do is to come in here and say they are newbies or do not know anything about mineral rights.
Been under the weather for a long time. What are the lease bonuses or poolings going for in the 7-17N-2W? I would appreciate any help.
To All,
Just found out a while ago from one of the Devon Landmen that Section 36, 19N, 2W well in Logan County that was drilled from a pad in Payne Section 6, 18N, 1W is initially producing between 200-300 BOPD and gas.
Does anybody have a good Logan County sec/township map they could post a link to?
Larry,
Do you know of any activity, present or future, in Logan 32-19N-3W in the SW/4? Thanks-Arthur.
Here you go Todd. This Logan County Platt Map has worked pretty well for me. Wish it were a bit larger though.
Logan County Platt Map T - R - S.pdf
If this link doesn’t take you to the right place, just do a Google search for the same and click images and there you’ll have it.