New to this, need help!

General Mineral Rights Discussion
1

Hello all,

My wife has received two certified letters from Bearcat Land Inc. on behalf of Continental Resources Inc., regarding two separate well proposals:

Tiffee 1-4H Section 4-3S-2W

Seiffert 1-14 Section 14-3S-2W both in Carter County OK.

They are offering 4 options on both proposals:

1) Pay our share of the drilling costs and participate to the full extent of our interest.

2) Lease for $1000/acre with 1/8 royalty.

3) Lease for $800/acre with 3/16 royalty.

4) Lease for $200/acre with 1/5 royalty.

My wife inherited the mineral rights from her mother but did not file any legal notice on the mineral rights in OK. when her mother passed away. In order for us to make an informed decision on the above options where can we find information on the above listed well proposals potential and who do we contact to file papers regarding putting my wife's name on the mineral rights? We live in Michigan and travelling to OK. is not an option at this time. Thanks in advance for any info that will point us in the right direction, David Kapa

2

David, go up to the top of the page where it says groups and join the Carter County, OK group and also ask your question there. I’m going to let someone more knowledgeable than I answer the rest of your questions. But, if it were me, I’d counter offer asking for $800/nma and 1/4 royalty. Doesn’t hurt to ask! Those with mineral rights in those areas may know more about what the going rate is in those areas and it could warrant more than we’re discussing! It’s also important to get the right language and terms in your lease agreement. And most here will tell you the bonus is less important than the royalty percentage. Hope this helps, and welcome to the site, others will respond soon, I’m sure. Linton

3


Thanks for the reply Linton. I thought I was in the Carter County group when I posted my questions. I'll give that try.


Linton Tomlin said:

David, go up to the top of the page where it says groups and join the Carter County, OK group and also ask your question there. I'm going to let someone more knowledgeable than I answer the rest of your questions. But, if it were me, I'd counter offer asking for $800/nma and 1/4 royalty. Doesn't hurt to ask! Those with mineral rights in those areas may know more about what the going rate is in those areas and it could warrant more than we're discussing! It's also important to get the right language and terms in your lease agreement. And most here will tell you the bonus is less important than the royalty percentage. Hope this helps, and welcome to the site, others will respond soon, I'm sure. Linton
4

It’s good for you to be here, too! Linton

5

David, Linton gives good advice. Yes, if you had gone directly to Carter County Group we would not have seen your inquiry.

To help you understand mineral ownership, including current developments in Oklahoma, download and print “Basic Information for the Oklahoma Royalty Owner” Last Revision - September 2012, (Oklahoma Corporation Commission) found at http://www.occeweb.com/cs/RoyaltyOwners10-4-13.pdf . This 37 page + cover guide is excellent - lots of good information!

Newcomers to the forum often want to know about activity on or near their property.

For LEASING ACTIVITY, join and post to a county group forum. Members are the best source of information, so ask, making sure to give your legals with at least section, township and range. Please remember to share what you know when others ask. Also, you may be fortunate enough to own in a county with free online access to County Clerk documents. Occasionally you may find a filed lease with addenda/exhibit modifying the standard form lease with more favorable terms. Bonus amounts are not included on leases. Call the County Clerk for information to determine online accessability and login instructions.

For O&G COMPANY ACTIVITY, open this OCC Well Records link http://imaging.occeweb.com/imaging/OGWellRecords.aspx . Begin by entering the Legal Location. Next check the box Exclude ECM (unless your minerals are in the Panhandle). Click Search, to see EVERYTHING in the OCC imaging system that has been scanned for that section. You may wish to limit the search to a more recent date if the section has been heavily developed over the years. Drop down to Scan Date, enter a beginning date and use today's date in the last field. These are documents that the O&G companies NEVER send mineral owners.

As you begin researching your minerals, leave the Form # blank. Later you may want to limit your search to specific documents. Some of these are: Form 1000, Permit to Drill, Recomplete or Reenter; 1001A Spud Notice; 1002A Completion Report; and 1073 Transfer of Operator. There are other forms, but these will probably be of most interest. IMPORTANT - because surface location for horizontal drilling is often in an adjacent section, be sure to search all 9 sections! One additional tip using the Well Records link - if you use %, the wildcard symbol, instead of the section number, you will pull up all documents for the entire township, especially timesaving if your section is in the interior of the township. This is a case to limit to Permit to Drill or Completion Report. See page 32 of the Basic Information document above for an explanation of the United States Land Survey System used in Oklahoma.

Also check out the National Association of Royalty Owners website http://www.naro-us.org/ , especially the Oklahoma Chapter page. Information on Unclaimed Property indexed in the Mineral Owners Escrow Account (MOEA) or by the State Treasurer, and much more.

6

Wow! Looks like we have ton to learn. Thanks so much for the information and enjoy the Holidays!



Wesley Skinner said:

David, Linton gives good advice. Yes, if you had gone directly to Carter County Group we would not have seen your inquiry.

To help you understand mineral ownership, including current developments in Oklahoma, download and print “Basic Information for the Oklahoma Royalty Owner” Last Revision - September 2012, (Oklahoma Corporation Commission) found at http://www.occeweb.com/cs/RoyaltyOwners10-4-13.pdf . This 37 page + cover guide is excellent - lots of good information!

Newcomers to the forum often want to know about activity on or near their property.

For LEASING ACTIVITY, join and post to a county group forum. Members are the best source of information, so ask, making sure to give your legals with at least section, township and range. Please remember to share what you know when others ask. Also, you may be fortunate enough to own in a county with free online access to County Clerk documents. Occasionally you may find a filed lease with addenda/exhibit modifying the standard form lease with more favorable terms. Bonus amounts are not included on leases. Call the County Clerk for information to determine online accessability and login instructions.

For O&G COMPANY ACTIVITY, open this OCC Well Records link http://imaging.occeweb.com/imaging/OGWellRecords.aspx . Begin by entering the Legal Location. Next check the box Exclude ECM (unless your minerals are in the Panhandle). Click Search, to see EVERYTHING in the OCC imaging system that has been scanned for that section. You may wish to limit the search to a more recent date if the section has been heavily developed over the years. Drop down to Scan Date, enter a beginning date and use today's date in the last field. These are documents that the O&G companies NEVER send mineral owners.

As you begin researching your minerals, leave the Form # blank. Later you may want to limit your search to specific documents. Some of these are: Form 1000, Permit to Drill, Recomplete or Reenter; 1001A Spud Notice; 1002A Completion Report; and 1073 Transfer of Operator. There are other forms, but these will probably be of most interest. IMPORTANT - because surface location for horizontal drilling is often in an adjacent section, be sure to search all 9 sections! One additional tip using the Well Records link - if you use %, the wildcard symbol, instead of the section number, you will pull up all documents for the entire township, especially timesaving if your section is in the interior of the township. This is a case to limit to Permit to Drill or Completion Report. See page 32 of the Basic Information document above for an explanation of the United States Land Survey System used in Oklahoma.

Also check out the National Association of Royalty Owners website http://www.naro-us.org/ , especially the Oklahoma Chapter page. Information on Unclaimed Property indexed in the Mineral Owners Escrow Account (MOEA) or by the State Treasurer, and much more.