I have also received offer from Sanguine to drill in 5-3S-3W and 32-2S-3W in Carter County, Oklahoma, regardless of owners consent, with the approval of OK Corporation Commission. The mineral interest will pay for the well costs. How is this legal?
Welcome to the forum. What documents have you received? An offer to lease with Sanguine independently of the OCC mailings? Or is it the pre-pooling letter with about four options on it? Which one is important to the answer about who pays for what.
Martha, I received an offer to lease from RD Williams for Sanguine on 32-2S-3W and 5-3S-3W. It says lease/assign your interest. Lease not so good. Wondering if should wait to get pooled or go ahead and try to get changes done to the lease but they don’t let you do much changing. What phrase should I look for that is not good. It’s been a while since I’ve done a lease and the horizontals are difficult. I don’t have access to an attorney so have to wing it; any suggestions? Wait and get pooled?.
If you don’t want to have an attorney look at it and the company won’t work with you, then pooling in OK is a good option. The one phrase that does the most damage are the post production charges which will eat into your royalties. Other clauses can also cause harm. Draft leases are usually in the lessee’s favor not the mineral owner’s favor.
Well proposal TBD 1-4H5x32, section 32-2S-3W & 4 and 5-3S-3W, Carter county oklahoma,l. Sanguine Oil Company. OCC Cause CD No 202600208. Which is best for mineral rights owner, lease or sell? I have received selling price for $3500.00 per mineral acre from Plainview Oil Company. Is this a low offer? There are 4 options and a pooling offer given by Sanguine. Which is best for mineral rights owner, pooling or one of the four options?
Most offers generally tend to be below the value of the asset since the offering company wants to make a profit. Depends upon your needs. Short term upfront money with a sale and lose the potential for royalties for a long time or lease (or force pool) and get a longer payout on a successful well or wells.
Given that there are likely going to be multiple horizontal wells and that the pooling hearing is scheduled for June 9, I would sit back and take the highest royalty offered at the pooling. It will give a lower bonus, but that does not bother me. I would rather have a higher royalty over many years than a one time bonus for a lower royalty.
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