A family member inherited some mineral rights and recently received word from Sundance that they would like to lease. Nothing formal has been mailed to her but wanted to see what others in the area have received per acre in a lease, normal length of lease and the royalties offered.
I'd also be interested in how productive the area has been.
Thanks.
Sundance has an application to pool this section
Thanks for your reply.
What does "pool" mean?
Go to mineral rights forum home and search pooling. It will explain
http://imaging.occeweb.com/AP/CaseFiles/occ5080918.pdf
http://imaging.occeweb.com/AP/CaseFiles/occ5080613.pdf
It looks like two poolings have been filed for this section . Below is what they were ordered to offer in the pooling in section 15 next to your 11. They should offer this or more in 11.
This is outstanding. Thanks for posting it. I do have more questions if anyone is in the know and willing to help.
What happens when two companies are attempting to pool the same area? The other company has not contacted us yet. Should I reach out to them?
I see each owner has four bonus/royalty options to choose from from your example. I assume if one thinks there will be a lot of production, they would choose zero bonus and 1/4 royalties. Is finding out the amount of production from adjacent wells any indication on how much might occur here or is this totally a guessing game?
How long does it usually take for an application for pooling to become an order? Should we try to negotiate with one or both or wait it?
I see that the driller has to begin work within a year according to the example but I don't see how long it is for.
I don't type good enough to answer all those questions . If you want to answer my friend request in upper right hand corner of this page I will send you my # and try to answer your questions .
Very nice. Thanks.
A few more details on this since I started the thread...
I'm investigating getting the mineral rights my father-in-law (deceased) received from his uncle (the current owner) transferred to a trust he shared with my mother-in-law (living). It is my understanding that the original owner's will went through probate in Tennessee but that no deed was actually transferred to any heirs. Based on my limited research, it appears that my mother-in-law would have to get the deed changed as being owned by the trust before she could receive any money from a lease and file that with the courthouse in Logan County.
The court date for the pooling application decisions for both Sundance and Osage is March 24. Sundance has sent my mother-in-law, my wife and her brother a lease agreement through Jackfork Land, Inc. The letter from Jackfork does not say if they represent Sundance though the representative who called my m-i-l said he did.
The pooling agreement for an adjacent property linked by Ron above is a much better deal than what the Jackfork lease offers ($500 acre, 3/16). So we're wondering:
1. If the mineral rights deed needs to be transferred at some point before money can be actually received or is this lease with Jackfork enough. They put "once verification of the mineral interest has been completed" language in their cover letter. Red flags immediately go up for me.
2. Can we sit back and wait on the pool hearing to finish so we can see if we might get a better deal? Currently, we don't know which company will gain the rights.
3. Though my wife and her brother are the heir of my m-i-l's trust, I don't understand why Jackfork would include them in this lease as the trust should be the only owner of my f-i-l's portion of the uncle's will.
This is very confusing for us and we want to make an informed decision even though my wife's portion is only .625 of an acre of the total 10. Any advice is appreciated.
There are other people here like me. This is a full time job trying to understand everything. I wonder if they are paying the best "hourly rate" for our work. LOL
Just a quick update since I posted that...
1. I've found I must get the mineral rights transferred and filed in Logan County. The original owner lived in Tennessee and his estate has gone through probate. The problem is he left it to my father-in-law who is now deceased and hasn't had his estate go through probate since all his assets were merged with my mother-in-law in a trust. By law in Tennessee, his assets should not have to go through probate as they shared the trust.
2. Two oil companies are negotiating over pooling the area and it still hasn't been resolved. We're sitting tight waiting on the terms of the final agreement which hopefully happens in a few weeks.
I frankly got tired of dealing with it so am sitting tight waiting on OCC decision before making another step.
Can we sit back and wait on the pool hearing to finish so we can see if we might get a better deal? Currently, we don't know which company will gain the rights.
I would not "sit back"....this will go into suspense without you having a legal claim on it. A - An affidavit of heirship might be the quick way to change this over. Then get the title straightened out. These title issues only get worse and worse when left to rot on their own.
Why can the trust not deed the minerals over to another party? Then file that deed?
I would worry very much less about the BONUS amount or the ROYALTY amount and look for the other issues that a lease contains. First, the post-production expenses need to be strictly limited or you will be paying for compression, transportation, marketing, water disposals, etc. etc. I have seen 60% or more taken out of the royalty. I would rather have a 1/8th lease with NO POST-PRODUCTION deductions than a 3/16th on a well after year 2. I would want a strict minimum annual payment. I would not lease with a renewal clause. I would allow only 100' above and below the producing zone to be held by production. Do not comingle parcels...each tract is a separate lease.
Thanks for your reply.
I'll need to research "affidavit of heirship" as that's a new term to me.
As for the lease, I assume the outcome of the pooling request will define many of the terms you mention? If not, then I need to further research much of this as I am totally unfamiliar.
An update on this, Osage finally got the pooling order completed:
http://imaging.occeweb.com/AP/Orders/occ5123172.pdf
Here's where I am now...
1. The listed mineral rights owner did leave the rights to his 10 acres to five individuals. This will was probated in Tennessee. My father-in-law was one heir who has since deceased. Though his assets should be a part of a trust he established with my mother-in-law, the deed was never transferred.
2. I am trying to get my mother-in-law to contact her lawyer to get the deed transferred into her name through an affidavit of heirship or whatever method is required. Can this be done with her Tennessee lawyer or does she need to contact someone in Oklahoma?
3. Can she make her bonus/royalty selection with the deed in her name by contacting Osage? I understand she has only 20 days in which to do this before the default selection is made for her.
Thanks.
