Talking to Continental Resources about an OGL in Garvin County, OK

I received an offer to Lease using AOH in Garvin Co. 19-01N-03W. I read comments that sounded unfavorable concerning Continental Resources. This is all very new to me.

This Mineral Interest has been in the family for many years. My parents were born in OK., but moved to Texas. Both died in Texas. Mom probated Dad’s Will in Texas, but not OK. I am in the process of probating Mom’s Will in Texas. This Spring I was talking to Echo about this area, but they won’t deal with me until Mom and Dad’s Wills are probated in OK.
I am open for suggestions on any of this…beginning with Continental’s reputation. Thanks

Hi Carmen:

I leased my acreage in this section for $2000/acre & 1/4th royalty. You should be able to get the same.

Continental is a good operator & knows “how” to complete these formations. However, I believe ECHO will be the operator of this section. Just get yourself a very good lease form to protect your future interests, regardless of to whom you decide to lease your interests with.

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It was right under 20 acres when my parents had it. Now it will be split with my sister…so just under 10 acres. I’ve been trying to understand the Clauses on their Exhibit (Depth, Pugh, Gross Proceeds Gas Enhancement & Shut In). Any tips on what to look for specifically would be appreciated.

Thanks for the information on your acreage!

Continental really know what they are doing in the oil business Carmen but every oil company will look out for it’s own best interest. You may be referring to the class action suit that Continental just went through and had to pay some of their royalty owners a settlement. I’m not sure what it was all about but I believe they were taking more out of the royalty owner’s checks than they were supposed to. Our check was a nice surprise.

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I (and my father and uncle before me) have found Continental very good to work with, responsive to questions and fair and up-front about leases, etc.

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D…I’ve found what you said about Continental to be true also.

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That is a semester long class in law school. Lots of great resources online,

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Most every clause in a lease “can” be negotiated, but depending upon the operator, you may have more luck with one than another in getting favorable terms for you. You do not want a top lease, or an option to extend. You do not want to warrant your title. You need a no post production charges clause, not one with “enhanced” payments. You need a good depth clause, a commencement of drilling clause, limited shut in time, etc. Not giving legal advice, just experience. You do need to finish the probate.

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Linda, A very late THANKS for the information about Continental!

D_Davis, I appreciate this information! It really helps a newbie!

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M_Barnes, you are amazing to share your experiences as you do! Thank you so much for the information!