Anyone else getting offers in the mail for these sections? I’ve received several with the last one for $700/nma for 1/5th royalty. Anyone seeing more? Also, is it worth the time & expense (attorney fees) to actually do a lease or is it typically better to wait for pooling? This is the first time I’ve had to deal with this as I’m a relatively new owner. Any advice would be greatly appreciated. Thanks!
Lease bonus offers are private unless someone else shares. I always ask for what is being offered for 1/4th (25%). Several leases have been already filed for that bonus in those sections. I would rather have a higher royalty as the bonus amount is rather insignificant compared to the increased value of the royalties.
I am a firm believer in getting good legal advice on leasing. The draft leases are usually in the operator’s favor and need some significant edits. Investing in good legal advice before signing a legal document that can hold my family years has paid off in significant upside in royalties. If I cannot get a reasonable lease, then I have no problem going with pooling as it has its own advantages.
Here is in OK handout on pooling so you can understand it better.
0_The Pooling Process in Oklahoma.pdf (340.4 KB)
I received a verbal offer for $600/acrewith 1/4 royalty for three separate areas in section 26 Roger Mills county. I’m not sure why the land man ghosted me after that exactly. He told me his agency was representing Mewbourne and I asked him to show me some verification, and then heard nothing back. Supposedly, another lease procurement agency Rock Creek, is the only company working with Mewbourne directly for acquiring western Oklahoma leases, which is why I asked him. I contacted Rock Creek and they said Mewbourne was concerned that another agency was claiming they represented them, some sneaky stuff going on.
Buford, I’m curious to know what company(s) contacted you? I’ve had other offers at 1/4 royalty for section 26 so I agree with M_Barnes, go for 1/4.
M_Barnes, you mentioned several leases have already been filed in section 26, what are the lease bonus and royalties that you’ve seen, and is that something that is available to the public? It is my understanding that if it gets to force pooling, the NMA and royalty is based on the highest bonus offer at each royalty fraction of a lease signed. Meaning if the highest lease signed at 1/4 royalty was $600/nma, then that would be the force pooling bonus offer for 1/4 royalty. Is that true?
The lease bonus amounts are not public. My understanding is that the pooling bonus amounts are based upon the operator’s highest bonus offers in the section of interest and the eight contiguous sections around it within the last year. The operator only knows their own offers.
Thank you for the information and willingness to share your knowledge with others on this site! You are a blessing to many, especially to newbies like me. Sparkle - The offer was from Kunu. Walker Energy just contacted me about 22.
What are pooling bonuses, please?
If you are not leased and your interest is “pooled”, you are given options with royalty & corresponding bonus($$$/per acre). You must choose or the Order chooses a default option for you that is generally most money & less royalty.
If you are pooled (and are not leased by then), you have 20 days in which to answer the pooling. Send your response by certified return receipt mail and keep a copy of everything. If you have leased and it is very close to the pooling, then it is a good idea to respond to the pooling anyway and say that you have leased with Company X for Y royalty so that they have it in their records.