I’m looking over an oil\gas lease for a friend and am unfamiliar with Oklahoma leases. Property resides in Custer County, 15N-19W. What is the going rate on royalty and bonus on a 3 year primary term lease? Also, within the lease they would have the right to maintain control of the acreage even after the primary term and no production on a yearly basis with the payment of $1 per net royalty acre without a time limit. Is this common in Oklahoma.
Welcome to the forum. Royalty rates in that section range from 3/16ths to 1/4. Bonus rates are not public.
If you have never leased in OK, it is wise to get an attorney to help with editing the draft lease. You can adjust the time frame to be specific on that clause. You really need to be concerned about the post production charges and about ten other clauses.
Thanks for the reply and tip on post production charges\atty. Are leases recorded in OK or just memorandum of lease. My friend is out of state owner but the 40 acres next to her just leased and the instrument # is online…
In OK, it depends… It is better for the mineral owner to have the lease filed so that landmen can find it. Especially if there are depth clauses. If the grantee only files a memorandum of lease, the grantor can file the lease themselves. Always keep a copy of the lease for your heirs.
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