Several months ago, we declined the offer from Sanquine on the above and decided to be force pooled. My family thought the offer should at least match the previous lease we’d had which was from Echo. Now we have an offer from a landman that does match the bonus of the old Echo lease and I believe the landsman has said said they’ll accept our Addendum A (which I got from Martha some time back as an example of a good Addendum A.). Oil is now worth more, is there a way for us to take advantage of that? Will the amount we get from the forced pooling be based on the price that was negotiated a few months ago? We now have a "notice of hearing motion to set cause on docket. What’s that about?
Oil & Gas Lease values are ONLY based on competition. For data purposes, poolings are supposed to reflect the testified value of verifiable arms length transactions in the 9 surrounding section within the last year. If you sign a lease, you won’t get any bonus money under a pooling as that is what was paid for the consideration of the lease.
If you have an old addendum from me, it was only an example and is now out of date and never to be construed as legal advice. Recommend that you have an oil and gas attorney review any lease and recommend a new addendum.
No, the offers do not correlate to the price of oil, only competition in the area, just like real estate-location, location, location.
If you lease, then you will not be allowed to participate in the force pooling. You can choose to lease or to answer the pooling, but not both. The leasing agent from a third party may be able to offer a slight bit more, but generally, they know the market and it is just about the same as the pooling options.
The notice that you received is giving a timing for the case on the court docket. If you pick the pooling, be sure to answer within 20 days. Send by certified mail.
Thanks. I think I understand.
Thanks. I keep trying to learn.