Question regarding oil leases in SE Kiowa County

Oil and Gas Leasing Help
1

My family owns land in eastern Kiowa County, southeast of Sheridan Lake. We have a lease offer of $150 per acre plus 15% royalty. We are curious to know if this is close to what other owners have been offered. Thanks in advance for any information you can give us.

2

I have MR south of Sheridan Lake, and in area around central Kiowa County. I had offer of $150/A with 15% RI; in trying to make changes in the lease–through an attorney–they withdrew the offer. This was with McDonald Land Leasing. May I ask who is the leasing company you are dealing with? Thanks.

E W Schwartz

3

Hi, the company that contacted us was McDonald Land Leasing. May I ask what changes you wanted to make in your lease? We have heard from others that McDonald’s lease terms are onerous. Thanks.

e w schwartz said:

I have mineral rights south of Sheridan Lake, and in area around central Kiowa County. I had offer of $150 per acre with 15% royalty interest; in trying to make changes in the lease—through an attorney—they withdrew the offer. This was with McDonald Land Leasing. May I ask who is the leasing company you are dealing with? Thanks.

E W Schwartz

4

My objections to McDonald lease form are as follows:

  1. ASSIGNMENT OF LEASEHOLD INTEREST–Permitted, however, lessee is to be released from liability as to the leasehold rights in the assigned acreage only.

  2. POOLING OF ACREAGE–only from producing zone.

  3. WARRANTY OF TITLE–can warrant title to only those acres owned by lessor.

  4. TOP LEASING–I can not agree to top leasing; the way this clause is constructed in the lease makes the lessor liable for failure to notify McDonald of other top leasing offers.

I would recommend that you ask for a copy of the McDonald lease form. Have it reviewed by your attorney.

My attorney is Gary W. Davis, Eads, CO. His phone is 719-438-5861, should you want to consult with him.

E W Schwartz

Kiowa Lilly said:

Hi, The company that contacted us was McDonald Land Leasing. May I ask what changes you wanted to make in your lease? We have heard from others that McDonald’s lease terms are onerous. Thanks.

e w schwartz said:

I have MR south of Sheridan Lake, and in area around central Kiowa Co. I had offer of $150/A with 15% RI; in trying to make changes in the lease–through an attorney–they withdrew the offer. This was with McDonald Land Leasing. May I ask who is the leasing company you are dealing with? Thanks.

E W Schwartz