I just received a lease for the above in the amount of $300.00 per acre. In 2009 I received $800.00 an acre. What is the going rate now?
Thanks so much for your help.
Ruth, I remember your name from that Section 1 years ago! It’s been close to 15 years now since I worked up there. I think we were paying about $300 back in 2006, and as I recall prices did go up quite a lot, but natural gas was higher back in 2009 as well.
It’s been so long since I worked in the area, that I wouldn’t be of much use. You might call Janice Gayle Salmon in Shattuck, OK. She is probably in the phone book up there if she is still living. As I recall, her Trust has quite a bit of minerals in Section 1 (at least she did back then), and she might know who is on the up and up. I do remember fondly sitting at her kitchen table and her instructing me on how to determine when a stem of wheat is ready for harvest. Good times! And good to see your name again. Hope you are well.
Thanks so much for responding! I will certainly try to get in touch with Gayle. Thanks for that information! We worked with Mike Clark on this in 2009. Have you heard his name recently. What do you think of getting in touch with him, also. We are well…made it through without getting Covid…and now both of us are vaccinated. Hope you are well!
I haven’t worked up there since 2008 or so. I didn’t know Mike Clark or who he worked with. I used to work with Panhandle back in 2006-2007 in that area a lot.
Be aware that the bonus offers for leases in this season are quite a bit lower than they were a few years ago. The COVID drop in oil prices drives some of it and market conditions for what operators are willing to pay is competitive but cautious right now. The offers will vary according to your royalty. 1/8th will of course be higher than 3/1ths, but most of us would want 1/5th or 1/4, so those will be even lower.
The clauses in the lease are so much more important than the bonus because the bonus come only once and the clauses can hold your family for decades on multiple wells if they are drilled.
The majority of the last 5 years’ drilling in that area is Marmaton reservoir and by EOG’s Carlyle DrillCo partnership ( Carlyle and EOG Resources Announce $400 Million Drilling Partnership | The Carlyle Group). Your acreage is just North of the more recent activity, but the Marmaton sand there is the best prospect and you’re in a good channel of it.
It seems the DrillCo has simmered down and Mewbourne and Unbridled Resources are the two active players. Personally, I really like Mewbourne as a company and would lease to them all day long. I’m not familiar with Unbridled (EDIT: oh! I see! Maverick acquired Four Point, then changed their name to Unbridled. I like Mewbourne much more than Four Point).
I agree with Martha (always 
) to focus on royalty rate more than bonus, although $500 seems more in line with what’d I’d expect. For this part of the play, you might be able to get 1/4th royalty, but it’s been a mixed bag of 3/16th and 1/4th being leased lately. Sand Creek Petroleum has only been leasing at 3/16th (awful low…and with a long term…) but Mewbourne has been offering 1/4th. You should get 1/5th at a minimum.
I’m guessing the Parker 1H well is not holding the section?
Here’s a map of leases and wells in the last year.
Thanks to all of you for your helpful replies. I really appreciate it. I just talked to NARO and the lease prices ranged in by the January/February report was $30 to $4100 with a median of $302. Any thoughts on this?
Location, location, location. The lease range will vary according to the royalty-High royalty, low bonus-low royalty, higher bonus.
It will also vary by how many reservoirs might be potentially available and who the company is that is offering and what their bosses say they can offer.
Is there any place, agency, newspaper, etc that gives information on what prices are being paid?
Also, where can I find out what pooling is and how it affects the mineral owner?
There is no central place to find out prices. If you mean purchases, you can sometimes figure out the general price by the amount of the stamps on the deed. If you mean pooling, then yes, the poolings are public knowledge. You can search in nearby sections and see what is generally offered if they are pooled. The Oklahoma Corporation Commission has a nice booklet on pooling and how it works.Imaging Will get you started.
In a nutshell, pooling is used when there are owners who cannot be found or have not signed a lease. If you signed a lease that covers the target formation then you won’t be pooled. If you haven’t signed a lease, then pooling is a way to force you to elect compensation. There are usually 2 or three options. In Oklahoma if you do not respond to a pooling order then you are “awarded” the plan with the largest bonus and smallest royalty.
If you want to learn more consider this resource: NARO Booklet on Forced Pooling in Oklahoma
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