Anything new going on in Stephens county, section 8, T2N, R5W??
No new leasing in the last 24 months. No new OCC cases in the last 24 months. Two very old dry holes.
That section is located between two older gas horizontals completed back in 2016. Warwick just drilled some horizontals just to the NE, so time will tell if anyone moves your direction.
Lincoln Land just dumped a pile of leases in 16 &21 2N-5W! @Bethiej you might have some action coming your way soon!
How can I see what the terms of the leases are? I’m sure I’m being lowballed, but don’t have much experience in this and I live in Colorado. I did make them add an addendum to my lease with Pugh clause, no deductions and depth clause. offered $700 per acre and 1/8.
Do not take a 1/8th royalty!!! I would not take anything that Lincoln land is offering at this point.
I would wait for regulatory activity to start on your property. Make sure your address is up to date in the courthouse. File an affidavit of address change in Stephens county if you feel like it is not. This way all the leasing folks can find you quick.
If you’re wanting to just lease and get it over with Lincoln is probably reputable. Make them give you atleast a 3/16th or a 1/5th. But if you’re not in a hurry I would wait for the pooling application to be filed with the OCC (if address is up to date you’ll get the pooling notice via certified mail).
DO NOT TAKE A 1/8TH LEASE!!!
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What if it doesn’t go to pooling. I’m in section 8. There has been no activity there for me in 46 years except for leasing. Please help me. I have the lease signed and notarized. Why do I feel like I’m making a big bet in Las Vegas??
If you have not turned over the lease to them, then they don’t have it to file. 1/8th is the lowest royalty. Read that lease again and see if it has post production charges in it. It probably does. I would be tempted to tear it up and start over since I hate bad leases. If you really need the bonus money, then you can hand it over, but realize that might be all you get and if they drill down the line you will lose money on the post production charges. The attorneys can speak to whether a verbal promise to sign is binding or not.
It does have post production costs, but I made them put in a no deductions amendment. Is that good enough. Also a Pugh clause and a depth clause. Any thoughts. Please help
Just because the header might say it is a no deductions amendment, the wording is of the clause may put those deductions right back in. One little word after a semicolon, such as “however” can change the whole meaning of the clause.
We cannot give legal advice on the forum. It really would be wise to invest in an attorney to read the lease as a whole and point out the clauses that need to be struck, the clauses that need to be amended and the clauses that need to be added. I have a feeling there are remaining clauses that you need to be concerned about.