UDX Canadian Valley LLC

General Mineral Rights Discussion
1

Hi everyone,

Very new to all of this... inherited mineral rights from my father when he passed away last year, located mostly in Seminole County, OK. We had some existing deals going with New Dominion LLC and so far the most I've had to deal with is pooling requests and signing bonuses for new wells.

Last week I received a request by mail from UDX Canadian Valley LLC to do a 3D survey of a piece of land in Township 9N Range 6E in Seminole County. It specifically asks for "a term of 2 years from the date first mentioned above, including the right of ingress, egress, and across the mineral interests owned or leased by you. If at the expiration of the 2 year term provided for herein, Contractor is permitting, surveying, or conducting seismic operations with the Canadian Valley 3D survey then this Permit shall continue and be in force for as long thereafter as is necessary to complete all permitting and geophysical operations of whosever nature."

First, I have never dealt with the company before and searches online haven't yielded anything, so I have no idea whether they are legit or not. Two, if they are legit, are these terms reasonable? I'm not sure whether it is normal for there to be some sort of financial compensation for allowing them on the property to do their surveying. If not, should I just sign this and let them do their surveying, or wait for a "better" offer from another company?

Any help or advice would be greatly appreciated.

2

Michael,

You will likely gain from geophysical operations across your minerals eventually. In your approval, guard against liabilities that may be created by the geophysical operations, make it clear that you are not committing any mineral rights you may have nor are you expanding on any rights provided through inheritance, set a time limit or strike the "for so long" clause and you shall be held harmless for any actions resulting from the survey. If you minerals are currently under lease, you may not have the right to grant permission, having given away that right through the tens of the lease. If you suspect the motives of the surveyors, don't agree or ask them for enough money to have your lawyer look over the contract for your protection.

3

I, too received a form permit from UDX Canadian Valley for rights I hold as Trustee in Seminole County. I called the name and number on the form and the response I got was they were not going to offer compensation unless they did not get a majority of the forms executed without offering anything. I saw no up-side to executing this form and I do not know the reputation of this company so I rejected it and filed it away.