In October 2022 I received a lease offer on my mineral interest from Jess Harris III on behalf of Sequel Resources. I did not accept the lease offer because we could not agree on the terms although all my relatives did sign. Thursday I received a certified letter from R.D. Williams (excerpt attached) on behalf of Sanguine Gas Exploration. This offer is $200 less per net acre from the original offer plus it lists a lot of expenses that I don’t understand If I remember correctly I have read that it is better to be force pooled. Is that correct in this instance? What should my next steps be? Thank you for any advice you can provide.
This is a standard “courtesy” letter that is sent out before drilling. I file them, but never reply to them as I do not want my signature floating around out there when I have not signed a lease or pooling. You can either choose to lease or to wait for pooling. If you want to lease, get a good oil and gas attorney to review the draft lease as it will not be in your favor and needs edits. If you lease, you do not want any post production charges-among many of the clauses that need changes. If you only have a small amount of acreage and do not want to get an attorney, then many of us wait for pooling and select the highest royalty at that time. Pooling has some advantages of its own.
0_The Pooling Process in Oklahoma.pdf (340.4 KB)
You cannot really compare lease offers three years apart as the competition is completely different from year to year.
Thank you for your reply