Judith: Lack of a probate does not prevent you from signing leases. However, if you receive royalties from old wells, your production is likely “Held by Production”, and that would prevent you from signing new leases. In other words, it is already leased. The exception would be if your original lease had a depth clause, or if you were force pooled for specific formations, etc. Maybe there is more to your story?
Judith: Yes, the leases would be on file at the County Clerks office in El Reno. If they are after 1992 or so, they are available online. If you want to send me a friend request instead of putting this in the public domain, I could look to see if they were online. It would help to know the name of the person who signed the leases.
Just be careful about selling unless you really the money now. If you decide you want to probate no matter what, I can give you the name of a good lawyer. Charges usually run $2000+ depending on complexity.
Judith,
New to the forum and wanted to know more about section 15. Would you accept my friend request so I can ask you a couple of questions please?
M Barnes, I curious about the “top lease clause” you mentioned as being important in a lease. To be clear, I understand the basics of top leasing; I’m just curious about the restrictions or benefits of the clause. Can you offer the text of a typical clause as an example. Your posts are always enlightening. Thanks.
You only want a three year lease, no two year extensions, highest royalty you can get, depth clause, no deductions whatsoever, commencement of drilling clause, no warranty, top lease clause.
Friend me with the blue icon next to my name and I can help walk you through the learning process. Then you can choose what best fits your needs.
You do not want a top lease clause. It is usually at the end of the second page of a lease and says something along the lines of :
“If at any time within the primary term of this lease and while the same remains in force and effect, lessor received any bonafide offer, acceptable to lessor, to grant and additional lease (top lease) covering all or part of the aforedescribed lands…lessee shall have 15 days…” Essentially a right of first refusal clause. They can get you into all sorts of trouble. Here is a good article about them.
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DJ Monty, There is quite a bit of new horizontal drilling in the sections around 11. You should already be getting paid on the well that is already there. Many of the sections are now getting their second well. I am not selling any of mine in that area as the offers are low to actual value.
We have only 2 acres in Canadian county 35-12N-9W and around 1 acre in NE/4 of section 10 T 12N 7w and haven’t had any lease offers. My Mother had remarried years ago and I wonder if that is why she hasn’t received any lease offers. Have there been any lease offers here?
Hi folks… newbie here…just received unsolicited offer to purchase my mineral rights in S11, T13N, R7W. Contacted my brother who sold his over a year ago (he, I and sis inherited) and I am just starting to research area and options. Willingly accept opinions/advice/comments but please recognize I reserve right to make up my own mind and hope you will accept that. Thanks much…
Shawn, there has been leasing activity in 35-12N-9W in late 2016. Your mom needs to turn in her new name and address and a description of her mineral acres to the county clerk in Canadian so she can be found. There is a small fee.
Armor Energy has just filed a well location exception for that section for a new well.
Nothing new in 10-12N-7W
Newfield has decided to sell its interest in the Southern Star 28-13N-7W-H1 operated by Paloma Partners IV in 28-13N-7W. Apparently, Newfield believes the rate of return is too low.
Sec 10 -T12N- R5W…There is evidently still some sort of interest in this area…we were approached years ago by a company…And M BARNES provided a wealth of information, but it did not seem that there was any real activity for the location…the company did not work with our contract proposals so we did not sign anything…I assumed others signed up and the company had what they wanted to do what they wanted as they wanted and we were out…Can anyone offer information on what is happening now in the above section…and what would be the smartest thing to do, sell, lease and at what options…we do not live in Oklahoma. And things in Texas with minerals are not what they were 10 years ago…really need help…
Sec 31-12N-5W has a new horizontal well spacing approved as of March 2017. A good bit of leasing by several companies in late 2016 and so far in 2017. Might not be a good time to sell.
Where can i get a shale map of canadian county so when people comment on their sections, etc. i have some idea what they are talking about.
thanks
James, a bit of leasing in 32-11N-5W in late 2016 and early 2017. Horizontal drilling just to the south of you in 5-10N-5W.
I am new to this blog, and am trying to help a family member out. We received a “top lease” offer on 120 acres my relatives have that is currently HBP in 21-13N-6W. Does anyone know what going rates are in this area for lease bonus and royalty?
See my other answer. You have to be careful about the payments on these top lease offers. They are often wanting to “break” an old lease and will only pay you part of what they are offering. If they fail, you may be in legal limbo and also not get your full price.
Rule of thumb for speculative purchases: 3 times the going lease rate of 3/16ths if under lease and 5 times if not leased.
Or you can pull recent offers and create a comperable price index.
Or you can try to find true value by hiring a reservoir engineer and using old well logs and seismic obtain the expected value of extraction of proven reserves and price your acreage based upon the oil and gas actually in the ground.
R Story, you mention “pulling recent offers.” How do I go about doing that?