Section 34-2S-2W

Oklahoma Mineral Rights Carter County, OK
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Does anyone know anything about section 34-2S-2W? I have had multiple offers to sell and am currently in negotiations with Ace energy but just not sure if I should sell

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Any time I get multiple offers to sell, a whole bunch of people know something I don’t know and they are pretty sure they are going to make a profit off of me, so I slow down and find out what is going on. You are smart to ask questions. There is quite a bit of interest in portions of Carter county right now due to planned horizontal wells into the Woodford. There has been quite a bit of leasing in your section and surrounding ones in the last year which is another indicator that folks know something. Personally, I would rather lease at 1/4 or 1/5 and hang on and see what is going to happen.

Ace is not an end buyer. They are most likely going to flip to someone else for a higher price than they are offering you. That is how this mineral buying game works. No problem with that, but you should know it and act accordingly.

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Thank you for the info.

4

Great response.

I will say though, in this area, provided that your minerals are not already held at 1/8th, you will be hard pressed to find any new lease beyond 22.5% royalty. Best spot for both bonus and royalty is going to be 1/5. The days of the 1/4 royalty are pretty much over due to the economic environment we’ve been in since 2014.

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Eight leases filed at 1/4 in the last year in 36. Looks like a private deal, but they are there. 26 leases at 1/5th filed in the last year. The rest are at 3/16ths.

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Hello, Ive been reading a new lease for my approval and wondered what are the do’s and dont’s on some of these better leases for horizontals? It seems they are all different! And, I feel like I am going to over look something that is real important and not realize until I have already signed.

  1. It talks about all the additional cost and fees and of course I want gross proceeds. No deduction from the well head. Is that how I should as for it? And then later, it states that the leasee has the right to use free of cost, gas, oil, and water. Can I strike that line? Is that too much?
  2. Then I have a big concern about unitizing and holding on to your lease even if it is not in the unit and then having the option to extend at 125% of the primary for any part of the lease or any part that is not unitize. Do you have a good exhibit A to cut thru all this? Futher more, after 68 years of owning and leasing we are being told that we do not have an interest in a 30 acre tract in 26 2s2w. Ive been thru a stack of documents and I just dont see it! Ive asked for evidence and all that was offered was legal jargon but nothing that is proof. So I do not believe it came from a title attorney more likely a landman… Where to turn in Ardmore…thinking that closer to court house is less costly in the long run… Thanks for any advise or direction you can send me.
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  1. You will be charged the taxes. Most of us want no post production charges whatsoever. That is part of the royalty clause that may need to be negotiated.

The second clause is one that I strike completely. I do not allow them the right to use any of my gas, oil or water without paying. Haven’t had that clause in a lease in years.

  1. I am not clear on the second question. You would need to quote the phrase.

Most Exhibit A’s are made for purpose depending upon the lease at hand.

Legal jargon may well have the answer lying within it. Ask for the paragraph from the title opinion that explains the logic.