Got an offer to sell mineral rights, we just have 5 acres but they said Paloma is a big outfit and planning to drill? My question if we sold since we live on the acreage could they have us move or anything? We love our home and don’t want any issue with that. Offering $8800 an acre that sounded good but it’s to actually sell. 19-13N-6W
And Paloma not the one doing the offer it’s a company out of Tulsa but they told me about Paloma’s activity in the area.
Given that the section to the north of you has five horizontal wells, you may not want to sell. Paloma has an application for a horizontal well with 19 & 30. You should have gotten the OCC mailings on it if your name and address are properly filed in the county courthouse. The well will be located ~330’ from the east line of the section with the surface location in sec. 30, so not close to your home. The name of the well is supposed to be Kexico 30_19-13N-6W 2MHX. This may not be the only well as they have left room for about four more wells.
You will probably make a lot more money off of the horizontals than the buy offer. Do you have any current royalties or do you have an offer to lease? If you have an offer to lease, then pick the highest royalty and get some legal advice to get a better lease than the draft that they are offering. You do not want post production charges (among other things).
The mineral rights are dominant over the surface rights in most cases. However, depending upon the state, there are some protections for the surface owner. Some language says that operators cannot drill within about 200 feet from a barn or house. (Some states have much larger easements.)
Thank you! I just looked and sec 30 is south so yes not near my house. I just noticed a lot of letters in the past month about buying. The company with the offer called and sent letter. I may have gotten something from OCC but could it have been months ago? I greatly appreciate your advice, especially about the postproduction charges and just to get my own legal advice so I have a better lease. I checked the county website, and our address is correct. I know 2017 or 2018 they attempted to force pool. But I can’t remember.
Offers to buy frequently “chase the bit” because the buyers want your royalties. And they plan to make a profit. Some buyers do, some don’t. Our family likes to keep our royalties…
I have no problem with force pooling. In fact, I prefer it if I cannot get a good solid fair lease with an operator. If you cannot find an attorney quickly, then pooling is a good option. Be very watchful of a pooling order because you only have 20 days in which to respond after the order date. Otherwise you get the lowest royalty and most folks really want the highest.
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