Hi buckskinman, I am guessing the options in the pooling application will be the same as what is in the previous pooling order #719517.
$1,000 per mineral acre for a 1/8th royalty interest.
$750 per mineral acre for a 3/16th royalty interest.
$500 per mineral acre for a 1/5th royalty interest.
All of the amounts are well below what they were a couple of years ago. Given the choice between that lease offer and the pooling, I would choose the pooling. But that’s just me.
One more note. I was able to negotiate a little better bonus amount and royalty percentage with them (Red Wolf at that time) through a Pre-Pooling Letter Agreement (PPLA) ahead of the first pooling. Never actually spoke with anyone more than once. It was all done through emails. Many emails.
Section 14 just pooled with Camino in May 2021. $500 1/8th, $400 3/16th, $350 1/5, $200 1/4th or individual breakouts by reservoir. Personally, I would take the 1/4th as the royalties far outweigh the one time bonus, especially if there are multiple wells down the line. The nearby recent wells have been quite promising.
1/4 was not an option in the section 12 pooling last year. The reason for one brother being dismissed from that pooling. Hope it gets added as an option in this pooling.
If you are new to pooling, remember that you only have 20 days in which to answer. I try to send my answer in at about 10 days to make sure I don’t miss the deadline. And I send by certified mail return receipt. (Have had to use that a few times to get paid.) Many folks also send a copy to the OCC. Put your name, contact information, Case number and spell out the option that you are taking very clearly, description of acreage.
If you do nothing they Pool you and you get the lowest Royalty – 1/8 ---- could someone verify this - Please…
That is correct. No answer, they put you at the lowest royalty. And they hold the bonus because they assume your address is incorrect. Then you have to ask for the bonus. Big hassle. So much better to answer the pooling and get the option you want and verify your address! Also, send them a W-9 and get that out of the way at the same time.
Timely election is vital. I also like to timely file my election in the case itself and not rely upon the operator’s receipt of the item.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
@Diesel @Jimbo_Jonas Latest activity… putting a cage around the Tyler well’s Christmas tree… Section 13-6N-7W … location for the ROBERTS 0607 12-1-1MXH
Don, this is not Section 13-6N-7W … location for the ROBERTS 0607 12-1-1MXH ?
When did they get the rig?
Thank ya much my friend.
Kooool as breakfast by the pooool
