Martha… what section is your minerals in. I have other in different section so wanting to try to lease them thanks for your help. joann
Steve and Joann, that is a bit low from others I have heard.
Never lease two tracts in separate sections in the same lease. You do not want one holding the other. Get separate leases. Also, multi-tract deals often get better terms.
thank you m barnes… I am going back and ask for more. I only have a very very small amount in this section.
Joann—Section 14 10N 9W and Section 12 9N 9W A few acres in each. I tried to figure out where the tracts are and I think they’re cattycorner to one another so sharing a corner. I’m wondering if it’s advised to get two separate leases if they don’t share a border. But that’s another question…
Martha I have acres in Caddo SEC 11 11N 13W that lease will be up on the 27th so hoping I can find someone interested.
Marth…No luck with Turner. I had offer of only 125.00 more per acrea, then that company would pay me sooner than turner and my attorney wanted a line deleited from lease as they wanted to much deductions take otu so attorney said take that out. Turner would not even talk to me just said take the other companies offer very hateful. and that was it. LOL Joann LOL
Certain parts of Caddo are heating up after years of so-so. The current interest is in the Woodford and the Hoxbar so far. Meramec in the future? Not sure right now.
The old wells are usually in the conventional plays. The new ones are going for the shales or the Hoxbar. The current leasing is for these new plays.
If the landman was exceedingly rude, you can turn him/her into the AAPL and report the behavior. Generally, the CPL’s are quite serious about their ethics and don’t want landmen to have a bad name.
Duff B. With that clarification, in your place I would be asking for the release and if it wasn’t forthcoming demanding it. Might even consult my lawyer and record a statement that the lease had expired according to it’s terms which would cloud the lessee’s title so they couldn’t sell your lease to someone else.
thank you all for the nice notes. I have never had a landman or company talk so very hateful to me. guess I am learning something new. LOL and especially when they contacted me out of the blue then I found out a well had been plugged and one not producing so what gives with this offer???
Joann
I have mineral interest in a well in Caddo that has been shut in since May 2015 and operator did not pay shut in royalty. (I just realized this while gathering tax documents, called and found out shut in date.) I assume this means they will have to release under whatever new terms we might agree on if they want to bring it back online? Is there any way they can force me back, like force pool after the fact? If they decide it’s not worth producing, they don’t have to pay me anything but still have to cap it to meet law anyway I presume?
Go with the one that will give you the mineral owner friendly clauses!
The lease says one year extension if they pay “delay rental” which is to be paid within a year of shut in date and then annually thereafter. A year from shut in date was May 2016. We are coming up on two years this May. Sounds like I need to demand a release be filed. Thanks for that info.
Check your lease and see if they had a 90 day extension or not. If not, then write the operator and demand a release of lease be filed in the county courthouse immediately. Then you are free to lease again. You may get better terms this time. Read up on the various clauses that you need to get.
Duff B. When did your primary term of your lease expire?
If you had a lease with a primary term of 3 years and you got a well which was shut in in the 2nd year, the primary term had not expired. The primary term must expire before you are entitled to shut in payments in lieu of royalty.
Are you calculating a year from the date of the primary term expiration?
Ray, Forestar drilled a couple of horizontal wells in 13-11N-13W in the Marchand in 2015. A bit of oil and gas.
Nothing new at the moment in 16.
The lease was signed in the '70s, three years or five years, and held under production since they drilled a well in the '70s. The last royalty check I’ve received was in July of 2015 for $76 for the prior year I believe, probably all production before it was shut in. I do not see a depth clause in this lease and do not think there is one in a similar lease I have from that era also in Caddo. I’ve been hoping they might drill another horizontal well at another layer on either or both, but better would be if we got some bonus money, new lease, and a new well. I actually lost track of this one, since the same producer shut in the other well, paid shut in bonus, then sold the other well. It pays about as little and as infrequently. I got the two confused with each other.
Have received an offer from Swanson to lease acreage in 3 sections of 7N 11W. First offer was $300/acre 3/16 for three years. Offer then raised to $350/acre which doesn’t excite me a great deal. The royalty terms are good but would like to see quite a bit more for the bonus. These sections were last leased in '12 and '13 for $600-650/acre. I realize most of the current activity is north of me, so maybe my expectations are high but I am willing to wait.
We’ve had a lowball offer on our mineral rights in Section S:27, To:9N, R:10W by Edge Energy Management. $325 per net mineral acre with 3/16 royalty for 3 years with a 2 year option. Any advice?
Those offers may be in the ballpark on amount, but do not do a +2 year option -ever!.
Make sure you have a no post production costs lease, no enhancements, no nothing.
Offers in 10N 9W are about three times higher than that. First offers are usually low to final offers…