McClain County mineral rights

I have mineral rights in McClain Co. i have been contacted by a landman offering to lease in an effort to force pool.

What is the legal description, Section, Township, & Range?

Section 13-7N-4W McClain Co. OK
Proposed TBD 13-7N-4W


Newfield Mid Continent recently completed a two-mile long horizontal well that terminated in the Section to the south of you. It was competed in what is considered an oil rich shale zone. Newfield et al. force pooled that well which is the norm for horizontal wells drilled in the area. I speculate that Newfield will apply for a drilling permit that includes Section 13 in the next 1-3 years (depending on elections).

I would hold off leasing for a while and determine the bonus amount demanded by the OCD before determining whether to lease or bet pooled. If your are dead set on a lease, my advice assuming you have at least 40 net mineral acres, is to only lease to Newfield and get the highest royalty you can negotiate, especially if you have any inkling of selling your production rights in the future. Of course there are many other lease terms you may want in a lease but make sure its a good lease for you because I don't think there will be many chances in the foreseeable future.

You are in a good spot. Make the most of it and do what is right for you.

Gary L Hutchinson

Minerals Managment

The company,Citizen Energy IL,LLC is offering 750.00$ per net acre and a 1/5 royalty. As an 80% net revenue
Intrest. With a requirements to to participate in persuant to the terms if the “force pooling order”. Actual
Survey is SE/4 of 13-7N-4W section 13-7N-4W.

750 is dirt cheap for that area. Going rate for anything of size in that area has been 3 to 4 times that amount. The "pre-pooling letters always go out way cheaper than they are willing to pay. We recently leased some really close by for just over 3K an acre at 1/5th royalty.

Be cautious of landman friending you on here to "help" You can go back a few months to see who offers the best unbiased help. I know Tom and Hutch have all been regulars over the years that offer great unbiased help/assistance.

My advice out here is to swamp checks for an OGL. Don't sign a copy to send in for their "title packet". You will be surprised at the last minute offers you receive when you have been put on a respondent list for Coproration Commission activity. I have made that mistake a few years ago and haven't done it since, so only trying to help from my past experience. They did have a binding agreement, since I sent in a signed copy and I missed out on a lot of extra money, by doing what I thought was "standard practice"

Don't forget the operators are a tenant subject to the rental/lease agreement on your property (mineral rights) that you provide. Make sure your lease protects you incase you need to evict that tenant in the future.

It sounds like just doi g nothing right now might be the right thing to do.