Hello- another new person ;)
I have read a lot of great stuff on this forum and want to just Thank everyone for being so supportive.
I inherited some mineral rights and have no idea how many acres or what percent. I literally got oddly two letters from the same company (B&W Exploration, Inc) stating the exact same thing.
They did the typical offer of $350 with 1/8th, $250 with 3/16th and $200 for 1/5th. I didn't get any information regarding length of the lease however.
I did get an AFE- which seemed to be pretty expensive to just drill a hole to see if there is oil in this location. Almost 3 million I guess would indicate that they feel positive oil might be in the location? Unless that is chump change for these companies.
Another thing- I called the company and nobody answers. No website and the company has an operator that has the same name- which just seems a little shady.
I have heard that you never sign the lease without talking to them. I tried calling like I said and nobody answers - not even a PBX to allow me to enter the guys extension.
I understand they probably don't want to hear from people and just want you to sign and send back. If I don't sign I understand they have to pool.
I also know that other family members got the same offer- so I think that its because we all inherited from the same source (duh).
I can even find any information about this specific area. Any words of wisdom from you "pro's" let me know.
Thank you!!!
Jon,
Would you mind posting the name of the company wanting to lease your minerals?
Clint Liles
Jon,
Apparently B & W is at least legit enough to have filed application for Spacing on that section. Have you received a copy of the Spacing App. I saw a couple of Evans's but not Jon. If you need a copy I can pull you one off the OCC website. Actually $3mil. is chump change compared to the $10mil or so being spent on horizontal wells.
From what I could gather from the Spacing App. they are planning a verticle well on 160 acre spacing.
I would follow my instincts on this, I personally would not sign a lease with someone I can't locate and talk to.
Jon, the lease clauses are as important - actually more so - than the bonus, and there are many to scrutinize before signing.
Also, don't let them insert any language to the effect the lease includes "any contiguous, or adjoining minerals, or any minerals in that section, or any minerals in that county". That would allow them to pay you for some minerals and possibly get other minerals you own without paying you.
Jon,
I think that you are in the process of being force pooled based on Michael's research and have been given choices from participation (AFE) to various royalty and bonus scenarios. The terms offered have most likely been approved by the OCC as well as the "standard" lease terms. The fact that you were not offered a term of lease indicates that the well may already be drilling or that drilling is eminent. Perhaps the well has been drilled and the offer to lease is a requirement of the OCC and a division order title opinion. You and your family must have some small acreage in the unit so you need to do some further research with the OCC to determine your rights then choose an option based on your risk aversely.
Sorry Jon a second look did reveal your name as a respondent to the application to establish Drilling and Spacing units. So I assume you do have a copy of the app.
Jon and Gary, The application for Spacing is the only thing on the docket at this time, so forced pooling is several months into the future, if at all. There have been no OCC rulings to date, I believe you have plenty of time to do your research and negotiate a lease. The only advantage to signing a lease now would be to make some quick cash in the event the deal falls through before it even gets to pooling. Good Luck!
Yes, Gary may be right because of the AFE. Since Michael saw a spacing request it seems there also should have been a pooling request. I have not checked OCC.
Such an interesting family story. My great, great Grandfather and Grandmother (could be another great I am missing lol) got this land in the land run apparently (well it was taken from the Indians right). Apparently there were children of my grandparents who couldn't have children and adopted two Indian children and they were bequeathed this property back along with my Grandmother. I am not wording this exactly as It probably happened cause I am just learning about all of this. I had always heard about my Grandmothers family as a kid and loved hearing her tell all of the stories. Apparently the "Greats" owned three farms- one of which had cherry wood that was burned by neighbors during the depression to keep warm. The Great grandfather died young and left the property to his wife who ended up loosing it to one of my great (not keeping track of all the greats here lol) Aunt who in turn left it to my grandmother and her two Indian children. The male child was killed in Oklahoma tragically by his gay lover and in turn the property came back to the remaining Indian- now woman who has sold the mineral rights years back (the percentage she had) cause of tax and lack of significant earnings.
But Grams who passed away about 12 years ago of course left the mineral rights to Gramps who passed away about six months ago. Leaving 50 whole acres (only mineral rights) to his surviving children one of which was my father. Since my father passed away- there are four kids who have 1/4 of 1/4 of 50 acres-lol.
Apparently My Uncle has been working with Daniel Bui who has negotiated (for his piece which I have determined is 12.5 acres) $6000 with 3/16 royalties for a 3 year lease.
They have not drilled yet but I believe they are expecting to any day. My Uncle is suggesting that we sign as well and it seems like a pretty decent deal.
He got a higher acre rate and middle road royalty.
Now- my Aunt spoke to the "Indian" woman) and she said that there was a oil well close by that someone was drilling into from another "area" which I have heard is a no no- and that could be indicative of why there is a flurry of activity.
So- to you all. It seems like Mr. Bui has done a great job working with my Uncle- I think that is cool. If there is oil- would 3/16 be decent royalty?
BTW- please forgive grammar and all that- just wanted to get this out (just editing it a bit- this is not meant to sound racist or anything like that- just cool facts I thought I would throw out there)
Also the best thing about this is the history - I love being connected to my family this way. I think its so cool to have mineral rights- even if its 1/4 of 1/4 lol. I love it!
Also not sure if the lease is just for gas or oil. I will make sure that no other rights are included? How would that be worded in the contract? Suggestions.
Jon,
That is quite an interesting story. Besides the obvious oil and gas angle, I am an adoptive parent, my daughter is not American Indian she is Vietnamese. Her birth name was Nguyen the most common name in Vietnam and Bui is probably next.
As far as lease terms 3/16 is a normal royalty and as Ann mentioned above the lease terms are the most important part. I assume Mr. Bui is an attorney or has some expertise in the oil and gas business and can take care of those details for you.
I would not assume that drilling will take place anytime soon. The Spacing Order is the first step in the process, with several more legal hurdles to jump.
In all likelihood there will be oil and gas both along with natural gas liquids that contain several marketable by products. All of this should be spelled out in your lease.