I am new to this forum and to mineral rights leases. As background I have been contacted about leasing mineral rights in McClain County, OK. It appears that I have a 1/3 interest in mineral rights on 120 acres. As far as I can tell the property is physically located in section 28 and 33, twp 7N, R 4W and section 32, twp 8N, R 4W.
I have done some research but do not know anything about the shale formation (name), fair lease value, etc. I have heard about $500 per acre plus 3/16 or $100 per acre plus 1/4 but do not know what these mean.
Any information clarifying these initial questions would be appreciated.
John, on the home page, go to groups, pick all groups, then search “McClain County, Oklahoma” and join those groups. Those people will be able to help you more, being more in touch with what’s going on in that area. The “$500/ac plus 3/16” means a lease bonus of $500 per acre for however many years the primary lease is, usually three years. And the 3/16% is the percentage you will be paid if they drill a well and there is production. Same with the $100 and 25%. So they’re saying they’ll pay you more up front in the form of a lease payment and less percentage of production of oil, OR, less on the lease and more on the production of oil. Is there any discussion of extensions on the lease offer? You need to learn about that also, very important. Forgive me, I’m not great at explaining things! If I were you, I’d join those groups in Oklahoma and find out what the going rate is in the area. I would not sign anything until I did my homework and understood the terms of the lease and what the norm is in that area right now. Hope this helps. Linton
Thank you Kitchen and Linton Tomlin. I actually thought I was in the McClain County Group but that is what happens to me when I start fumbling around something new.
Thanks again. I really appreciate the information.