Got a call wanting us to top lease, throw the other lease out and give us more acres as a result/higher percentage, on a well that’s not producing. They are hoping to drill a new gas well there. Offered us $450 mineral acre in Sect 29-22N-18W. Does anyone know the current leasing price and disadvantages on this (we don’t see any at this point). We were told if this fails the well stays as it is.
Has you current lease terminated for the lack of production or is the well not producing because it is shut in but otherwise capable of producing?
She said lack of production or shut in, we get a minimal check at end of year. I haven’t been on OCC well site to look, they changed their page and it’s not as simple as a few years ago to look things up. She called it no longer commercial use. The lease has not terminated. She wants a top lease.
Whatever she tells you and/or promises, and whatever you agree to ... get it ALL in writing.
Good luck,
Pat
Susie, it's hard to spot a gotcha from a distance and without having all the pertinent facts, and a lot of facts that aren't pertinent but you don't know they aren't until you have them.
There are too many possibilities. If the lease bonus for your unleased acres value is double the $450 signing bonus it could even be an attempt to get them cheap. All they would need is a proportionate reduction clause and pay you only for the acres that are not already held under lease. Would be just one.
Susie,
Think Obama Care. Here is a chance to repeal and replace a lease on terms agreeable to you. If you are also the surface owner, you can get that cleaned up as well. It takes a new lease and written agreement between the parties but everybody is happy in the end. The lessee retains control of all of your minerals but on your terms.
This appears to be a good honest solution to fighting over HBP questions. Get some legal help to make sure its fair for both sides.
Thinking more about this, maybe they just want to hold more acreage with the existing well. If the old well will hold acreage, there is no limit to the amount of acreage the well can hold, if they get you to agree to it. I would make certain that there will be a new well in the lease. Just because they say there will be doesn't make it a contractual obligation.
At this moment, I think Ms. Malone's advise is the pick of the litter. Get everything in writing, including the new well.
The land lady said there would be an increase of acres from current 4 acres on the present lease, to 8 acres on the top lease if it goes through, I suppose the company would let go of part of their acres to get this signed. In the past, the bonus was just the per acre price signing contract, are you talking about another bonus too?
We are in favor of replacing, no we don’t own surface in Woodward. Here in Lincoln County we do own surface too. My question was how much per acre is that area of Woodward County leasing for at the time of signing? Legal description is above.
They can’t show us there will be a new gas well now. We think replacing a dead lease is wise, they are releasing more acreage to us, present lease is 4 acres and we are offered 8 acres on the new top lease if it goes through. Details are being mailed to us, but, what is the going price per acre in Woidward County near this section? And that’s the bonus isn’t it? Or is the bonus something else?