Anyone familiar with US Mineral Exchange with offices in the Tulsa area? For a fee they will help get your property leased. I have 2 parcels in Grant County Oklahoma
Patrick, you can't talk a lessor into leasing land that they didn't already have interest in unless you had enough land yourself to form the drill spacing, or nearly, and at that you would have to offer them a sweet deal. It still wouldn't work if they don't think there is something there.
Insted of paying someone, I would make sure my contact information was current with the county recorders office for my minerals and then I would let it be known that I have the minerals for lease with a good legal description. You might add any other information you have such as there are wells around my minerals, if there are any. You can do that for free on this site if you go to the home page and scroll down to listings.
Patrick:
I agree with rw kennedy in that listing your minerals for free on this site and marketing them yourself will save lots of money in the long run. As rw says, make sure the contact info is current at the County Clerk's office and if an operator is interested in the area, most likely some landman will contact you. Good luck.
rw how many years experience in leasing do you have behind your answer and what experience is it that you actually have in oil and gas? Do you work as a senior landman or own an oil & gas exploration company?
Patrick,
If Jeff or one of the others at US Mineral Exchange agree to only charge you if they do get your minerals leased then what do you have to lose as long as you have the right to not accept an unacceptable lease offer. From experience (many times over), you can lease your minerals to a lessee (you would be the lessor not them) even though they are not actively pursuing or already have interest in leases in your tract. There are also those who are willing to lease on speculation. Just because you get your minerals leased it doesn't mean you'll get a well drilled but many times you may be the only one in your section to receive a lease bonus over many years.
Like the old saying goes…NOTHING is free. If you have activity in your area they will contact you…like stated before…make sure your info in the county clerks office is up to date with your information…right now I get offers daily in the mail and phone calls wanting me to sell my minerals. If you do get ready to sign the dotted line just make sure you read about all the pitfalls they put into your lease. As for me I hired an oil and gas attorney to review my lease before I signed…Saved my back side big time! There were just a few words in mine that were easy to look over but those few words made a big difference. Remmeber they are writing the lease to FAVOR THEM not you. If you dont understand a word or phrase make sure you look it up. You can also add things in the lease…example if they drill a water well have them leave it after they are done…if you have a water source make them pay you for use of your water. There are tons of tips here so sit back and crack a cold one and read all you can.
Sorry Tim, I only have ownership in 15 wells in 8 separate legal drill spacings, I guess I am underqualified. I'm not a senior landman, I just correct them frequently. I could have given you Daniel Daytons reply to me when I corrected him, "Who are you that I have to answer to you?" But I am more polite than that. Mr. Dayton also said I lack humility after I proved that he was giving false information. In general he was wrong, but in that particular instance he was absolutely correct, I do not have humility when dealing with landmen. Have a great day.
Tim Metz said:
rw how many years experience in leasing do you have behind your answer and what experience is it that you actually have in oil and gas? Do you work as a senior landman or own an oil & gas exploration company?
Patrick,
If Jeff or one of the others at US Mineral Exchange agree to only charge you if they do get your minerals leased then what do you have to lose as long as you have the right to not accept an unacceptable lease offer. From experience (many times over), you can lease your minerals to a lessee (you would be the lessor not them) even though they are not actively pursuing or already have interest in leases in your tract. There are also those who are willing to lease on speculation. Just because you get your minerals leased it doesn't mean you'll get a well drilled but many times you may be the only one in your section to receive a lease bonus over many years.
I did err and write lessor when I meant to say lessee, it happens, I'm not the first and I won't be the last, I'm sure. My apollogies.
Suppose that one has some acres that are unknowns, no nearby drilling activity, no seismic testing, a pig in a poke that the buyer is going to be buying blindfolded, just exactly how much do you think someone would pay to lease such acres? I know people who will gamble on anything and I'm sure that there are people who will lease anything, at a price point so low in bonus and royalty that the benefit of mineral ownership is pretty much negated. Your mineral acres become their mineral acres for a term
If it is absolutely free to use the mineral exchange I suppose it could not hurt to try it and see what kind of lowball offers you receive. If you do, please divide the lease bonus by the years and ask yourself if you would speculate yourself at that level of lease bonus, you already have the acres, nothing to stop you from mentally moving them from the sell (a lease is a conveyance of indeterminate term because of those little words, as long therafter as oil or gas are produced or the lessee is engaged in restoring or working to gain new production) column to the hold investment column. Plus, since you are in Oklahoma and I believe that 3/16 royalty is almost always offered in a pooling, make sure you get at least that royalty percentage. I also suggest that you get advice, business from a mineral manager to tell you what kind of deal you are getting and legal advice so you are covered, deduct these costs along with costs from mineral exchange from the lease bonus before you determine how much you made per acre in lease bonus. The reason you need this advice is because clauses for marketing can effect your bottom line to the point that 18.75% royalty could net you less than 10% and that 10%, if based on the sweetheart deal sales price to an affiliate could literally be 1/2 of that 10% you might have received. But give it a try anyway and let us know how you do, just be sure to preserve your future upside.
Thanks for the info. I will have the right to refuse any offer. The listing agreement is for I year. If I am contacted outside the listing agent, there is no cost to me.
Patrick
Last summer we were in the process of trying to sell some minerals up in Montana, being Landmen and members of many industry related groups on LinkedIn, we posted the particulars and began receiving numerous inquiries. Unfortunately most all of them were low-ball offers for less than we could have received as a signing bonus had we leased them just a few months earlier. After about a month of dealing with bargain basement buyers & alot of just plain flakes, we received a call from Eric at U S Mineral Exchange. He was very professional and well informed- we were just plain tired of jumping through all the hoops for people to shoot us those low-ball offers. Though a little hesitant at first, we decided to give Eric a chance- within a month we had several viable offers. He worked with us and the buyer to assure a smooth and worry free closing which benefitted both parties.
Even with the small percentage we paid as a commission, we ended up netting nearly three times the amount of our best previous offer. Would we recommend dealing with U S Mineral Exchange? Absolutely! They sure did us right!
Best of Luck in Your Endeavors!
Chris & Kelly Haugen
Really trying to make it sound as bad as you can but you really don't know what your talking about, it looks like your making it up as you go. If you had knowledge of what you are giving advice on you'd know there is activity all around the county so a speculating where his interest is, is not "a pig in a poke that the buyer is going to be buying blindfolded", no one is going to give out money to lease without some knowledge of what's going on if they are that ignorant they would have had to have inherited what they have and why do you insist the bonus and the terms of the lease must be such a bad one that only a fool would take it. A good lease at a going bonus is not as stupid as you are trying your best to make it sound and three years on a lease passes by very fast or you could wait 3 years and maybe make a big fat zero. It's all about trying to maximize the return on an investment over the life of the ownership of it. Many times I have gotten far better terms from a speculator and as Chris just stated he felt like he got a good deal. Your right, you don't have very much experience.
r w kennedy said:
Sorry Tim, I only have ownership in 15 wells in 8 separate legal drill spacings, I guess I am underqualified. I'm not a senior landman, I just correct them frequently. I could have given you Daniel Daytons reply to me when I corrected him, "Who are you that I have to answer to you?" But I am more polite than that. Mr. Dayton also said I lack humility after I proved that he was giving false information. In general he was wrong, but in that particular instance he was absolutely correct, I do not have humility when dealing with landmen. Have a great day.
Tim Metz said:rw how many years experience in leasing do you have behind your answer and what experience is it that you actually have in oil and gas? Do you work as a senior landman or own an oil & gas exploration company?
Patrick,
If Jeff or one of the others at US Mineral Exchange agree to only charge you if they do get your minerals leased then what do you have to lose as long as you have the right to not accept an unacceptable lease offer. From experience (many times over), you can lease your minerals to a lessee (you would be the lessor not them) even though they are not actively pursuing or already have interest in leases in your tract. There are also those who are willing to lease on speculation. Just because you get your minerals leased it doesn't mean you'll get a well drilled but many times you may be the only one in your section to receive a lease bonus over many years.
Chris and Kelly - Glad you had a good experience with U S Mineral Exchange. Like you, I was somewhat hesitant to sign with them. I hope they can get results. My properties has oil activity in the area but has slowed down the past few months. These properties have been leased in the past.
Tim, it was a great first post by Chris. Lets see if he posts anything else?
Tim you seem so certain that US Mineral Exchange is a great deal that I wonder if you don;t have some connection that you are not disclosing?
Tim, Patrick did not give legal descriptions and saying there is activity all around Grant county is like saying there is activity in Oklahoma, a really broad brush. If Patrick was in a real hot spot, this thread probably would not exist, because he would already have offers on the table, simple logic. Might there not be some place in Oklahoma, or even Grant county, that has not had production or even seismic done? Since a well can miss being in pay zone by less than a mile, I call that a pig in a poke.
I'm not on board with the certainty that Patrick will be waiting 3 years to lease his interests if he does not use the mineral exchange. As you say " there is activity all around the county ", but Patrick will go unleased for 3 years if he does not use the mineral exchange? Which is it? You are inconsistent and it sounds as if you are making it up as you go along.
I guess I don't have more than 8 years taking care of mine and my brothers interests and 3 years experience here on the board but I am a quick learner. I have caught one of my operators lying to the BIA in a correlative rights issue which led to an interesting agreement, helped someone decide to participate in their well and they are very happy they did, helped a few people negotiate more for their lease, some $100,000 or more for their lease and helped a guy who inherited the lease on 90 acres who could not afford to participate in the wells, increase the operators offer from $130,000 and 5% from that point on, to 2,000,000 and 3% from date of first production by telling him to get some farm out offers for the three upcoming wells so the operator would quit laughing about the 200% WI risk penalty (300% of well cost). I like helping people and do it as an intellectual exercise and don't accept money even if it is offered, I will accept a cup of coffee should I ever meet them in person. I'm just your typical mineral owner with not much experience.
I am also ex military so I do have a certain amount of pessimism, it's a survival trait and has served me well.
By the way Tim, do you own an oil and gas exploration company?
The Chris and Kelly Haugen post seems like it came from US Mineral Exchange....especially interesting that it appears to be their only posting on this forum.
Our post from three years ago was simply a comment on the experience we had with US Mineral Exchange. We are not affiliated with them in any way, other than the fact we once used their service. We are very busy with our business, and the fact that we aren't commenting on a bunch of blogs doesn't mean we're shills, it simply means we're busy tending to business.
Wishing You All a Very Blessed & Prosperous 2017!
Chris & Kelly
Patrick,
I would be hesitant on going signing up with a listing service. It is also quite weird that after you asked about the service and lo and behold Chris & Kelly created an account and made their first post on the forum singing praises about the service. I could be totally wrong in my assumption just sounds a little fishy to me.
If I were you I would go on OkCountyRecords.com and see who is taking leases near your section and contact them about your acreage. I bet that listing service would do the same thing and anybody they contact first who comes back to you months down the road you still probably have to pay a commission. I have zero affiliation with any of these services, I am simply a OK mineral owner and landman.
Best of luck whatever you decide on doing,
Cam
Hey man - We peddled our minerals with Eric's help, which is what we set out to do. When he contacted us asking that we post about our experience, it was our pleasure to do so. I find it quite amusing that a recommendation, or referral is looked upon with such skepticism. No egos, no kickbacks, just the truth folks........Believe what you like & God Bless.
Chris & Kelly
Incidentally, here you all are talking about a lease that in all likelihood would be approaching the end of its Primary Term, had it been signed when this discussion began, Hmmmmmm.
This is another scam. Same as mineral registry out of Edmond.