# Northern pottawatomie county, southern Lincoln
**URL:** https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837
**Category:** Pottowatomie County, OK
**Created:** [November 5, 2012, 8:20pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837 "2012-11-05T20:20:52Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 5, 2012, 8:20pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/1 "2012-11-05T20:20:52Z")
Are the many operating oil and gas wells around the area. What’s the best rate you’re getting for gas and oil leases? Of course, I got a lease not signed from Universal Land Services in Tulsa, about Calyx Energy wanting to drill. This is the only offer I’ve had.
This lease has multiple offers: 250 per acre - 1/8 royalty, 200 per acre - 3/16 royalty, 100 per acre - 1/5 royalty.
Which is the better offer, and can I get other offers that are better?
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 5, 2012, 9:23pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/2 "2012-11-05T21:23:57Z")
The different offers represent the different bonus prices they are willing to pay in order to get your lease. The best prices will come from the people who are going to drill the well, if you can figure that out.
The different bonus prices and the recommendation for which is best depends on your circumstances but basically, do you want more up front money and less royalty later, or less up front money and more royalty later.
One factor is how many acres do you own?
Another factor is when was the last time this section was drilled. And was that successful. If it was a long time ago and there have never been successful wells in the section, then more bonus and shorter lease term on the premise that they won’t get a well drilled in time before the lease expires and they have to lease you again.
Need Section Township and Range to answer some of those questions.
Good luck.
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### Author:  [@r\_w\_kennedy](https://www.mineralrightsforum.com/u/r_w_kennedy)
#### Post date: [November 5, 2012, 10:13pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/3 "2012-11-05T22:13:48Z")
Which is the better offer? If there is no oil under you the 1/8th and $250 per acre would be the correct choice because both 1/8th and 1/5th royalty of nothing is nothing. If there is a fair amount of oil under you, I would want $0 and 25% to 30% because the money is in the ground. The question now, is there oil under you? This you need to find out as best you can through research.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 5, 2012, 10:32pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/4 "2012-11-05T22:32:09Z")
Matthew… Calyx is the one drilling… so, is this paper from Universal Land Services, I’m guessing it is. They probably want a share of it also… somehow… I’ve been reading a lot on it…
160 acres plot or 80 is the actual acres I think… is the acres… Section 23-12N-3E… Lincoln County…
According to the Oklahoma commission stats… 2011 completions in Lincoln, Pottawatomie, and Oklahoma counties. None has been dry. Hitting oil and gas…
I’m now looking on OCCOG, Oklahoma Corporation Commission - oil and gas info about the wells in Lincoln County. Most are active and producing… it seems…
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 2:43pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/5 "2012-11-06T14:43:14Z")
Just looked at your deed. Yes, you have 80 acres that you own with two others. @26 1/3 net mineral acres each.
Calyx Energy is leasing.
Reagan Resources is leasing.
Take your current offer from Reagan Resources and ask them to beat it.
Then repeat that process with Calyx.
Make sure you get a depth clause. Also called a Pugh (Pew) clause. This says that all lands not producing after the primary term are not leased and you have the ability to lease those lands again someday or to someone else who wants to drill a deeper well to a different formation not reached during the primary term of your lease.
Make sure you get a Gross Proceeds Lease.
You have to read the fine print to be sure that it truly is a Gross Proceeds lease. In other words, no post production expenses are to be assessed to your royalty payments.
Ask for the shortest term possible. 2 years if you can get it. They will want you to sign for a 5 year lease. 3 Years with a Two year extension is acceptable as long as they pay bonus again if the three years comes up without a well.
Don’t sign the Warranty clause unless you are certain that you own the mineral interest they are leasing.
Good Luck.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 3:25pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/6 "2012-11-06T15:25:14Z")
That was a lot of information, Matthew, that’s awesome. What’s the best way to get a hold of Reagan Leasing, phone, person to person? I work in Tulsa, live in Claremore.
Depth clause. It has the depth on the well proposal, vertical at 5,100, and total of 9,500 feet or horizontally test the Woodford formation. Is that a clause?
What’s my bargaining? Did look up all of 2011 completed wells through Oklahoma Corporation Commission, and the area, Lincoln, Oklahoma, and Pottawatomie, there were 83 wells drilled, and none of them were dry.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 3:36pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/7 "2012-11-06T15:36:51Z")
What does the Gross Proceeds lease do?
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 5:20pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/8 "2012-11-06T17:20:41Z")
Gross proceeds means you will be paid based on what they pull out of the ground before marketing expenses.
I don’t have contact information for Reagan Leasing; I would look them up via Google search.
The important information regarding wells drilled in Lincoln County is not how many, but where. How many were drilled near you?
The depth clause that you want is only however deep they drill during the primary term. They may only drill to 5,100 feet during the first three years, in which case you would get to lease the 9,500 level again to someone else.
If I were leasing, I would want a high bonus and a minimum of a 3/16th royalty. You can ask for a favored nations clause which means if they pay anyone else a higher bonus, they have to come back and pay you the same bonus.
Ask the landman asking for the lease when he thinks the well will get drilled.
Ask the landman about wells in neighboring sections, how good they are, how deep they are, and how much they are producing.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 5:44pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/9 "2012-11-06T17:44:37Z")
Matthew, I checked on the OCCOG web page, typed in Section 23, 12N, and some wells popped up that were producing.
That must be close to the land… Oil and gas.
I did look up Reagan Resources. I can contact the leasing manager straight through email.
High bonus, meaning what? $200 per acre, 3/16th?
I have a phone number too, well, seems to be both Calyx and Universal Land Services.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 5:57pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/10 "2012-11-06T17:57:24Z")
Also, in the lease proposal, it says that Calyx will proceed with applications for the drilling of this well, including pooling and spacing at the Oklahoma Corporation Commission. Does this mean they have already started the process?
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 6:24pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/11 "2012-11-06T18:24:54Z")
Depends on if you are in the correct Range.
23-12N-3E.
The 12 and 3 represent a 6 square mile area with 36 sections in it.
Each Section is one square mile with 640 acres in it.
Section 23 is 3 miles to the South from Section 2 and 4 miles to the East of Section 19 but only one mile away from Section 13, 14, 15, 22, 27, 26, 25, and 24. What wells are producing in those sections and how good are they? Those sections are far more important than what might be happening in Range 4E.
Universal is probably Calyx’s leasing agent.
Try to get $300.00 per acre and a 3/16th.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 6:57pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/12 "2012-11-06T18:57:15Z")
So, how should I represent it to Reagan Leasing?
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 7:00pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/13 "2012-11-06T19:00:19Z")
The deed you looked up. Whose names were on there, what deed was it? My mom willed it to me and sister and brother, but they say his name isn’t on there. Only my mom, and her brother’s wife is still alive. How do we know if other kids’ names aren’t on the list?
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 7:27pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/14 "2012-11-06T19:27:06Z")
Should I email them, asking if they have an interest in drilling on it? How should I ask? What do I ask?
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 7:34pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/15 "2012-11-06T19:34:14Z")
Tell Reagan Resources the offer you have received and ask if they would like to make a better offer.
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 7:35pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/16 "2012-11-06T19:35:53Z")
Reagan Resources is probably not a driller and is just a leasing company. I don’t know that for a fact, just guessing. If they leased you, they would assign their lease to Calyx, which is why Calyx should be able to offer the best deal for you.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 7:37pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/17 "2012-11-06T19:37:22Z")
Are you saying I should ask Calyx directly? Leave the middleman out of this?
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### Author:  [@Matthew1](https://www.mineralrightsforum.com/u/Matthew1)
#### Post date: [November 6, 2012, 7:39pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/18 "2012-11-06T19:39:44Z")
Clyde, Grady, and Brenda.
October 2012 deed.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 7:40pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/19 "2012-11-06T19:40:00Z")
Matthew, thank you so much for taking your time to deal with me, someone who doesn’t know much but is willing to learn. You are very knowledgeable. I appreciated it so very much.
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### Author:  [@grady\_garrett](https://www.mineralrightsforum.com/u/grady_garrett)
#### Post date: [November 6, 2012, 7:43pm UTC](https://www.mineralrightsforum.com/t/northern-pottawatomie-county-southern-lincoln/19837/20 "2012-11-06T19:43:04Z")
Ok, that’s me and my siblings.
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