If you own the surface rights only and the operator has chosen a drilling site location on your land and the location is in compliance with OK Corporation Commission Regulations and the OK Surface Damages ACT for well locations you may have to take the case to court and rely on case law to support your position. The OK Corporation Commission lacks jurisdiction to make the determination.
Todd,
I think I have a farm just north of you close to Hiway 51. You have a lot to think about when you are signing a contract for a pad. What if your well goes dry, how long can the other wells be on your pad even if they aren’t producing? How is shut in taking care of on other wells. What will happen to the foot of stone they put down for the pad, will it be removed and where is it going to be put. My contract stating the stone goes to my roads. I can think of about 20 things that need to be in your contract without giving it much thought. Be sure to put something in so you an use the road and go into the pad if you need too. What about weeds, trees, etc and fences if this is pasture land.
Todd, Google surface use and damage agreements and you will find sample contract and info info like this Landowner Guidelines. http://www.lccdnet.org/wp-content/uploads/2011/07/oilandgaslandowne…
Correction: Judge Nikki Leach, I think I put the wrong name down. And his son is Shane Leach which is a very good attorney.
Todd,
How will be land be cleaned up? Take pictures. And when?
Do you have water to sell, put that in your pad contract that you have first choice on selling water.
Will the pad size be smaller once all the wells are drilled?
A good attorney will be able to help you on all the issues you need. I usually have at least one page added to the back of their contract.
Todd,
Is this White star drilling it?
Also, you may want to see if you can put a clause that the pad be smaller when the well is completed as 2.4 A can be cut down in size.
Todd,
I think that is about all they are paying in Logan Co for a pad. Have they offered to pay for damages to the crop? That is where you may be able to get a little more, maybe a couple thousand as it does take the pasture or crop land put of production for several years. Is this for 1 pad, be sure to put addition cost for each pad. What about restoring the property when the pad is not in uses? Where does the gravel go, etc? Take pictures before they start. What happens if the pad is built and not used? Sounds like the attorney’s are telling you right, OCC does rule on this. Good luck, hope you get another good well.
Todd,
I think White Star is a good company and will work with the property owners. One of the problems is that oil prices are still down, so their profit just isn’t their. Things are starting to turn around, so hopefully oil prices will go up, but so will gas prices at the pump. No win situation.
This is a good site regarding who White Star was.
http://www.wstr.com/content/WSTRPressRelease-April202016.pdf
So your hear say is right.
And I am glad that the oil field jobs are coming back as these work very hard for their money. Good luck on your new well.
Mr. Wilson, I have to admit that your posts are thought provoking.
Has anyone missed me and my “outrageous predictions?” Well, it is pretty obvious, to mois, that nothing is outrageous in this world, 5 years ago, everyone scoffed that we, the USA would even be close to energy freedom from the rest of the petrol cut-throat world. But here we are, huh? Only 10 days ago, I read of a new oil mineral discovery in West Texas, that is supposed to be the bigges discovery in the USA. I done predicted that a coupla years back, and I also predicted, and still predict, there is this much and more right under our noses in Logans County, Oklahoma. We will see tens of thousands of bbl wells, and that is a fact. And the clean energy crap is just that, it will not solve anything, and no amount of clean energy will EVER develop into the by-products that come from oil. None. This market will only continue to grow and it is growing more every day. So take heart, my childy’s, hang on to your Mineral rights, and do not sell them to anyone for any amount. Hang in there.
My family is ready to sell our gas and mineral rights. The money will be for my mothers care. She has 60 acres in NW/4 sec28 15N 2W in Logan County. The offer was for 300 an acre. Theres no well , no lease, basically goat pasture… So 18k is something she’d never get in her lifetime from that section. Just need to know if that offer is a fair, legitimate offer. i’m trying to keep my Mom in her home, rather than placing her , in a home… Thank you
Lisa, 300 per ac. Is not acceptable. You can do better. I will send you a friend request and we can talk about the going rate
Thanks for you input, I appreciate that. Here’s the thing I need to consider… There’s nothing out there, no well , my mom gets no income from that sec. The final offer is for 20k. In her remaining years, she would never get that amount of money. And when she passes, its going to be a nightmare for me, to deal with family members splitting this up. Do you still think I shouldn’t sell? I’d rather have her get 20k, , and keep her in her home, than to not get anything at all… Thanks for your comments
Thank you all for your comments… I have a question… If my mom is not getting any income from this section, its not leased or even has a well on it, what advantage is it to keep. Its basically cow pasture… nothing happing in that area… I realize 20k is low for 60 acres, but at what point do you stop waiting for something to happen. I mean, she wont get any income from that area in her lifetime… isn’t 20k better than nothing?
300 per acre sounds more like a lease bonus than a purchase price per acre. I would never sell for 300 per acre.
Lisa, I never advise selling minerals and you sure don’t want to sell for 300 per acre. I would add a zero on the end to get closer to the actual selling price per acre.
Just curious, how much per acre did they offer? And, a lawyer should not cost more than $500 to be the go between. Personally, I would not use anyone other than a well known attorney.
Can someone please advise me, on what is the best way to make a sale of mineral rights, without going through a lawyer. The Last time we sold , we used a lawyer, which ended up being a bit costly. I’m in a position to sell again, and would rather not use a lawyer , if I don’t have to. I know never to send the deed, until the money is wired into your bank account. The position I’m in, is that I contacted a site, that will list your mineral rights for free, help you find buyers, and will help negotiate a fair price. They get a commission, but not out of your offer price. I did get an offer, now hers my question… The guy wanting to buy, doesn’t feel comfortable depositing the money into my account, and I will certainly not send the deed without the check. I’m using the listing site, Mineral Hub, and have been talking to Mick, who has been very helpful. He said, one option is for him to be the middle man, and then have the buyer send him the money. He would than deposit it into his account. I would then send the deed to him, as well, then he would send me the money, and the buyer the deed. Is this way of doing a transaction, a common way to do it? I want to be trusting, but I’m not so sure … this makes me nervous. Thanks again for any advice
Hello Martha,
Long time no hear. Could you email me at brianrm2358@earthlink.net? I am revisiting the issue that so concerned me before with the design of the surface facilities. I would like to talk with you.
Regards,
Rob Brian