Just got a call from a “landman” about mineral rights that my great grandmother purchased. Section 15 (16N, 1E) 3.3 acres. He offered me 100 per acre & 1/6 royalty with 3 yr lease. He works for striker. This is all new to me & I dont know which way to turn. Is this a fair price? What about striker, any info on them?
Brooke The Horizontal drilling is new to Logan Co. I think I would wait a little but if you must lease get some help on the forum with your lease agreement.
Brooke
They would give you $330.00 for the lease and they get 3 years to drill a well . If they drill a well you get 1/6 of the income for your 3.3 acres. If they don’t drill a well within the 3 years you can lease it again. How much the royalty payment would be depends on how big the tract was they drilled( spacing) and how good the well was. For the most part royalty is paid once a month if they get a well. I don’t know it will be horiz. but that is were the interest is and what would make the price go up.
Kaye 640 1 section some are 1280 or 2 sections.
Brooke, I would also keep in mind that it looks like most people are doing well to keep 60% of what their royalty payment would have been without the operator making marketing deductions and taxes production and severance, state income tax (oklahoma and your state if any) and federal income tax. If you only get to keep half anyway, make the best deal you can.
thankyou Ron. How do you know it is horizontal? because of location? How do royalties work? Is this a yearly payment? Lets say they offer 1/6. How much would that be?
Brook you need to get at least 3/16 for you royalties or ask for a 1/4. I would think that with 3/16 the average price in that area has been $150 per acrea. At the top of this page is a area called minerl help, need to read about mineral leasing and you wll benefit from it. No need to get in a hurry to sign the lease, take time and get the clauses in your lease that will benefit you not the oil company. Keep asking questions on the forum, many knowlegable people to help you.
Have a Question: If a horizontal well is drilled how many acres do they normally drill under?
Thankyou guys!! Very helpful information! 
Kaye Were is your tract ?
Pam No they do not need to have all of the leases to drill a well. The operator will file a force pooling and the third party broker or anyone who has not yet leased to the operator will have to make an election to take a working interest with some or all of their interest and pay their share of the drilling cost for that interest and get their full share of the proceeds 8/8 for that interest in the well or elect to turn their interest they do not take a working interest in over to the operator and take one of the royalty options offered in the pooling and get that fraction for that interest. If you want to elaborate or have more questions let me know.
Thanks Ron, I just received the order in the mail today. Previously, I tried looking it up, but could only find the affidavit, but now I see where you said, the order was signed on the 22nd.
I read over the order and from my understanding Section 21 had a previous order approving a 80 acre spacing, but then vacated that order to increase the spacing to 640 acres which, includes the section I’m in. I realize that I don’t know the entire concept of how things proceed, but I’m confused if this is for a new well they might be thinking about drilling or if this is an existing well that’s already producing that they want to take further out horizontally or if that is ever done?
Or, maybe I’m just so tired I’m dreaming “Oil” and it might be a good idea for me to get some sleep and start all over again when I wake up! Lol
Ron thanks again, for your help!
Ron, Thanks! I had no idea how many sections a horizontal well could cover! Devon already had a spacing order as of last October for the section adjacent to me, but as of last month filed another motion to set the October motion aside and include the section I’m in. Since, I’ve seen other motions filed pooling, etc., but no permit. Don’t know if that’s a good sign or not!
Ron, I’m in 22 19N 3W
Kaye they have a spacing order for your section for a horiz. well dated 8/22/12. No pooling filed yet.
ok so as I said before I have land at Section 15 (16N, 1E) 3.3 acres. How would I find out who my neighbors are? Also, who would I contact to get a copy of the deed on the mineral rights as we have no record of it.
If an operator wants to drill a horizontal well in a section, does the operator need to acquire all leases in that section? Even if there are other third party brokers who’ve bought the leases in hopes of flipping them to the operator?
Let me know if you need me to elaborate. Thank you!
Brooke Do you have the land and the minerals or just the minerals.
Kaye Now you wait. If they had it all leased they would not need to file for a pooling.
Brooke What name could the interest be under ?