Any lease offers being negotiated?
There were just a few before the pooling (and all last year), so not much active competition. At this point, you only have a few days left int which to answer the pooling, so better to just to do that. Only 20 calendar days from the date of the pooling in which to make your selection and mail by certified return receipt letter. Many of us prefer to take the highest royalty and the lowest bonus as that usually pays off better in the long run. You only get the bonus once, but the royalty will be used for every well in that horizon held by the pooling.
If you make no selection, you will automatically be awarded the highest bonus with the worst royalty (1/8) . I agree with Martha, take a long view since the order may be in place for decades and decades to come. In addition to mailing the oil company, I file the election with OCC. Don’t wait.
Thank you for your reply. Your answer concerning prior lease agreements and the urgency in completing the election before the 20 days expire brings to my mind another question. Does the election take the place of a lease agreement contract?
Thank you for your reply. I had not considered sending the election to OCC. Would, Amanda Payne Legal Secretary Judicial & Legislative Services Division P.O. Box 52000 Oklahoma City, OK 73152-2000 (405) 522-0279 Office (405) 521-4150 Fax email@example.com, be an appropriate party to send it to?
Yes, the pooling order is a replacement for a lease contract. It is in essence a very short term lease for six months to a year and is only for the reservoirs named.
Thank you again, I cannot thank you enough for sharing your expertise.
I followed yours and Martha’s advice. The Pooling Order was signed on April 2; the first certified receipt was never signed so I sent it again and it was signed as received on 4-22 and the OCC filing date was 4-15. As I read the Pooling Order, the Applicant, Red Bluff Resources, has thirty five days from April 2 to mail out the bonus payment. Did I read that correctly? It has been 35 days so I emailed them and got no response; I called and left them a voice mail and have not been called back. Any suggestions of a course of action to consider?
A certified letter may be in order. They may be verifying title. If non-payment persists, then some more creative approach may be in order.
I’ll give that a try, thank you Mr. Winblad.