I am one of a group of heirs to some mineral rights at the above property, we received a letter from Hal Smith and Associates in Norman regarding a lease agreement. It is only a letter offering the following terms:
$250.00 per net mineral acre with a 3 year primary term, and a 2 year option at $250.00 per acre.
a 3/16 royalty as a share of production.
I don't remember how many acres are involved and the one cousin whose contact information I had readily available didn't remember either. The last time someone leased the property, there was a much more formal lease. I am assuming this is just preliminary inquiry to see if we are interested and the formal lease would be sent later.
My questions are these: Is there new drilling starting up in the area and is this a reasonable offer? I plan to read up on the depth clause and the no deductions clause before signing a formal lease. Is there anything else I should double check?
Janice Di Marco