I would like to know if anyone else is getting Mineral Leases for Section 6-14N-16W in Custer County? We just got a call last week and offering to lease for 3 years for $1000 per acre. The last 3 year lease was in 2018 for $1500 an acre. Also want to know if there is any activity for oil/gas wells, etc. going on in Section 6-14N-16W. Our family is researching this info before we decide what we do. Thank you for your help!
There is extensive leasing in that township. It is a good idea to ask what they are offering at 1/5th and higher royalties. 3/16ths would be the minimum. Past lease offers are not particularly relevant to the competition level for today. I see leases filed at up to 25% in the area.
There is a new Cherokee shale play that has horizontal drilling in two-three section wells. Permits are already filed all around your acreage.
If you have not leased in a while, it would be a good idea to invest in a good oil and gas attorney to help you negotiate the lease. The draft lease is not in the mineral owner’s favor and needs significant edits to be more fair. Also, do not hand over a signed lease without getting paid the same day. A neutral third party such as an attorney or accountant can hold the signed lease until payment is received. You might get more than one offer as there are several companies leasing in there. You can also wait for forced pooling which has its own advantages.
Martha: Thank you so much for this information. It was very helpful. This lease info we have for now is in an email with 3/16 royalty. We haven’t gotten a formal offer yet in writing. It was good to know about negotiating the royalty amount. Didn’t realize that was an option. We don’t own the land, only the mineral rights. When my Dad sold the property way back in the 60’s he kept some of the mineral rights and we inherited them. So over the years we have had some leases for 3 or 5 years. It’s always a surprise when someone is actually interested in leasing them again since nothing has ever happened in the area. I guess it’s a different ball game now with the horizontal drilling. I’ve searched for oil/gas lease attorneys in Clinton, OK, and found one attorney firm which one of the members in my family has used in the past. Thanks again for all this information, and if I or my family has any further questions, I will let you know. I’m so glad I found this Mineral Rights Forum! Thanks! Gayla M.
My grandparents grew up in Clinton. Always loved going to visit the relatives there!