Risks with leasing to 3rd party, not directly to operator? (Oklahoma)

Oil and Gas Leasing Help
1

Has anyone done much digging into the risks associated with leasing to someone other than the operator on these recent big wells?

It seems common when NFX, CLR or other majors start leasing and especially when they get closer to drilling doing spacing and pooling orders, that these 3rd party lease offers come in (i.e., JP Drilling, Greenstar, Stamps Brothers, etc.). Often the lease offers are much better than the operator will give even in pooling -- I'm seeing significant bonus and 1/4 royalty pretty frequently.

I'd like to take these offers in some cases but I worry that this introduces some real risk. If the 3rd party plans to participate, it all works as our 1/4 royalty is factored into all that. But, if they default on the pooling order at any point (first well, operation costs, subsequent wells, water injection wells, etc.) then it seems like the 3rd party may be put in a situation where the operator is paying less than 1/4 so they make no money and where does my royalty come from?

I realize my scenario in the above paragraph is a little all over the place. And I may be just making up a problem that is not real. I'm just trying to get a sense whether others here have thoughts or experience on this front. I'm going to talk with a couple of attorneys about it but always find your input helpful before those discussions.

2

There isn't much of a risk if any in Oklahoma. The lease will be pooled in with the designated operator no matter the lessee.

3

Thanks Jordan. So, my lease, terms and all gets pooled -- so even if I sign a 1/4 royalty lease and they don't offer that in the pooling, the operator that does the pooling pays the 1/4? No risk introduced by the party I originally leased to? That is very reassuring if so.

4

How many acres do you plan on leasing?

5

Most of the privates will participate. No problem.

6

Kitchen, I've got this going on in a bunch of tracts and acreage varies a lot, always single or double digits though so far from controlling a big spacing.