Muliple signed leases on same mineral rights

Dewey County

Apple Creek

Tapestone & Devon


160 total acer’s w/3 joint mineral rights owners (all family members)

Divided 30/30/60

Lease number OK16812.003

My question is about any complications of having two different leasing companies on the tract – the two mentioned above. I understand an agreement is required between the two. Such as when to drill, where to place drill heads, etc. And that one company can "contest" a problem with the other.

I’d like to be aware of any problems or concerns that may come up in this type of relationship. A problem could stop any drilling in its tracks. Are problems rare or more frequent that we know? Some background:

My brother and I signed a lease with Tapstone for 30 acers apiece @ $325.00/acer bonus and 3/16th. My cousin (Power of Attorney for his father) was delayed 4 or 5 months signing their paperwork. He received a different offer in the meantime and will sign a contract with Devon for $850.00/acer @ 3/16th.

Yes, I have a lot of other questions. But it is what it is. All of a sudden the bonuses shot up out of nowhere. We are all getting offers to sell our portion of the mineral rights as well. Offers up to $2500.00 acer so far – that’s without negotiating. We have contracts being mailed to us so we can have a critical look at them. Some give you 3 weeks or the deal is off – I know, we won’t be coerced by a limited time offer.

My cousin and I want to keep the mineral rights but my brother is entertaining a sell. I know the 40-year old ban on exporting U.S. domestic oil has been lifted but can’t explain all the interest in our mineral rights! And there is a lot it.

I’ve tried to keep this a brief as possible without leaving out too much. Any help would be appreciated.


It is best to let the oil companies, leasees, to bid on your minerals for lease to get the most out of them. For until they have a chance at bidding on them you never know what they are worth. I have listed my minerals for lease with a new auction site to obtain the very best deal for my minerals. You can find this site online at . I recommend to all mineral rights owners to list with this site or any mineral lease auction sites to get the most out of your minerals. For further info friend me.

Happy Holidays!

Chris: You do not need to concern yourself with leases to different companies. It happens all the time in Oklahoma and the Oklahoma law on forced pooling is designed to resolve any issues between companies and people who didn't sign leases to keep those matters from preventing drilling.

As to people wanting to buy your minerals, that means something is going on in the area and the buyers are aware of it. They want to buy low (from you), and sell high to someone else.

We are getting offers to sell our mineral rights ( that are presently leased) our offer is LOW @ $725 on acre ! SE /4 Of 10 - 18 N - 20 W !! Dewey County Oklahoma ! Does this seem like a FAIR price! A reply will b appreciated!!


For any given section of land, there may be multiple oil & gas lessees who acquired leases from the various mineral owners. As far as drilling, they all have to work together to get a well drilled. Generally, one party will propose the drilling of a well to all the other parties, and they typically are able to work things out. You needn't concern yourself with those issues. As far as prices offered as bonus consideration, it's an age-old issue for mineral owners, and timing is everything. Prices rise and fall and some lease their minerals at the peak of activity, meaning they generally will receive a higher bonus. Generally speaking, your brother can sell his mineral rights without affecting your interest. As far as deciding whether to sell your mineral rights, there are a number of factors. It's the age-old theory of a bird in the hand vs. two in the bush. If you accept a "fair" price for your minerals, you have a bird in the hand. If an operator drills a dry hole, it turns out that it was a good decision to sell. However, if a prolific producer is drilled, over time you could make several times the amount that was offered to buy your minerals. It's helpful to determine what activity has been taking place in your county and especially in your specific area. Let me know if you need help in finding out about recent activity in your area. Gary Beard - 972-955-9255 Petroleum Landman School, LLC and Institute of Energy Development, Inc.

There has been quite a bit of leasing in that township in the last few months. I suspect that the offer is quite low and someone is trying to buy up acreage before drilling activity starts. Common ploy. Personally, I would not sell.

Thanks Bonnie, I've familiarized myself with some of the pooling laws. And yes, there is activity in the area creating interest.

Hi Emily, as mentioned that does sound low. We have had productive wells on our acreage back in the 80s which may increase the value somewhat. It at least helps in negotiating with a potential buyer in the case of my brother and his sale. Personally I've decided to retain my mineral rights. If oil prices go up in the future so should the offer amounts and future lease negotiations. If you do decide to sell be prepared for a roller coaster ride. My brother had contracts canceled at the last minute. Some would come back with a lessor offer only to cancel again. Watch the contract wording very closely. Some are really over-the-top with all kinds of stipulations on the seller. Others were straight forward and reasonable. Best to have an attorney look them over.



Thanks for the reply Gary. There was a small operator back in the 80s with a couple of small, vertical wells that were productive. I believe that operator went bankrupt and there was no further activity. This in part is why I want to retain my rights. I understand Tapstone is a major player in this area. My cousin had a pretty good lease offer from Devon but before the contract was signed the deal fell apart because of Devon's financial woes. I had him contact Tapstone and they signed at a slightly higher bonus amount than my deal with them. Thanks again for the information - I will in all probability contact you in the near future. Chris


With Tapstone, did you accept the two year option in the lease?

In my opinion, two year options are not a good idea. There is risk either way, but I don't like being tied down for five years. Recently, I know of cases where folks are trapped by the two year option and have to take half of what the market is offering on new leases. I prefer to only take three year leases or less and re-lease at current market conditions rather than older ones. Sometimes you win, sometimes you lose.

Thanks for your reply, M Barnes. I absolutely agree. I have been negotiating this lease for six months now; the bonus has gone up but they will not drop the two year option. The landman said Tapstone is firm on the option and hasn't signed a lease without it, so I was just wondering if anyone else was able to negotiate the option out.

Hi Lauren

In a word, yes. Ideally, not entering an agreement for 5 years is better. However, with the energy prices so low and the oil companies struggling it becomes difficult to negotiate a "better deal". If you choose not to accept the 2 year option you may have to wait until the market turns around. Tapstone does have a high interest in the area and appears they have strong intentions on drilling here. From what I gather Tapstone isn't having the same level of financial difficulties as noted in the press. It is a gamble but I'm hoping Tapstone will be in a position to drill sooner than others. Devon as I mentioned earlier, was another interested party in this area, just starting laying off hundreds and selling off productive wells and other assets. Just my thoughts........

There was a productive well in the 80's and the energy companies are now back grabbing up leases. This allowed for some negotiation. I've heard about the CEO. My guess is attorneys bringing everyone they can into the mix. Tsmith was a past CEO of one of the co.'s involved in the lawsuit. From what I gather he was and is a respected oil guy. Personally, I'm not really concerned about the current litigation but time will tell. If he doesn't drill in about the next two years I'll look for a new lease and maybe the bonuses will be better.

Ms. Porter, if I couldn't negotiate a two year option away, I would go the other direction. Straight up 5 year lease for 66% more money than the 3 year lease. If they get the option and they still have not drilled but want to, they will pick up the option so there will be no difference but time value of money (which would be in your favor), you get 5 years bonus now instead of 3 years then two years bonus 3 years later. If they don't want the lease or nobody wants the lease 3 years from now, you have 2 years bonus that you wouldn't have had. Stand the deal on it's head and look at it...if they will not drop the option. Bearing the above in mind, what would you have to lose by countering with a 5 year lease?

I know it's unconventional, but I think it makes sense.