My family has received an offer to lease its interest (13 acres) in 36-10N-19W. The offer provides four elections: 1) $700 w/ 1/8th royalty and 3 yr term; 2) $600 w/ 3/16th royalty and 3 yr term; 3) $500 w/ 1/5th royalty and 3 year term; and 4) participation. I’ve read we shouldn’t participate but any advice as to elections 1-3? Thanks
Personally, I would go for the 1/5 royalty. Make sure that you have a solid no-deductions clause too. Some companies issue drafts that make you wait to get your money, don’t let them.
Thanks for the advice. I was leaning towards the 1/5th.
Actually don’t settle for their first offer. Always ask for more. Never good to be the first horse out of the gate. Ask when they are going to drill, who are they leading for, when will pooling be? Get no deductions whatsoever, not “enhanced”, depth clause, limit shut in, commencement of drilling. No top lease, no extension of lease. Lots of operator-friendly but not mineral owner-friendly clauses are likely to be in there. The first lease you see from them will need a lot of negotiations.
Thanks very much
Definitely not #1.
For the minimal difference in the amount of Bonus Money, I would choose option 3 with the highest royalty available if it were me. If you get a decent producing well, you will make up the difference before long.
Congratulations John. You should know that there are currently several actions in process for 36-10N-19W IM.
FourPoint Energy is planning two 10,000' Horizontal wells crossing both sections 36 and 25. All signs point to these being significant wells!
Here is a list:
Case Order# Order#800064028 167827800064029 169051200708116 548816 564312200803736 557793200805371 559585201802263201802264201802265201802266201802267201802269201802809 Filed 04/09/2018
Terry, any chance you’re a relation of Opal Shinn? She was my Great Aunt. And thanks for your input.
Yep! Mom passed in 2001 leaving a great legacy...
I met her a couple of times at least, which means I’ve probably met you. There was a reunion circa 1970 and then I was out there after Addie passed. My Dad always spoke fondly of your Mom and Dad. I’ll let the rest of my family know I heard from you.
First royalty check arrived yesterday (May 4, 2019) from: FLORENCE 25X36-10-19 3HB FLORENCE 25X36-10-19 2HA Still waiting on the production data by mail. Terry
Thanks Terry. We’re still trying to work out title issues with Four Points, but its good to know what’s going on.
Good afternoon all - is anyone aware of any activity near 4/11/19W ? I live out of state and never get to take a drive to look around