I just received an offer to lease on two sections in Carter Co sections 16&21. There are 4 options. What should I consider in making the decision? Continental Resources plans to drill the Bowery Well.
Welcome to the forum.
Determine which of the sections your minerals are in. If both, then you need to lease each one separately or answer the pooling for each one. You do not need to answer the letter. You can choose to lease with Continental or you can lease with someone else, or you can wait for pooling. The first draft of a lease is usually all in the operator’s favor and will need quite a bit of negotiation. You do not want post production charges included in the lease. You can wait for pooling. Many of us choose the higher royalty and the lower bonus. The bonus is only paid once and is a small amount compared to the revenue from a higher royalty which will include all wells under the lease or the pooling.
What is the complete description with the township and range? There are many sections 16&21 in Carter.
My father was in the oil business so he had numerous interests. I am not sure of the Township or other descriptors because it wasn’t included in the offer letter. Also not clear how i can find out exactly how many mineral interests he had. I receive several royalty checks for various wells but those ebb and flow. Been at this for a little while but apparently I don’t know what I don’t know. This forum should be a great resource. Thanks so very much!
The offer letter (if it wants to lease) should have the exact description in it with the Section, Township and range. It is usually near the top either on the left or on the right. If they attached the AFE (authority for Expenditure), the description will likely be in tiny letters very near the top.
Time to make a list of what you have! Start with each check that you receive. I use Excel and make a list by State, County, Township, Range and Section. If you only have a well name, you can also look it up on the OCC well records website.
You can find your probate document that should list what you inherited. It should have been filed in the counties where the minerals are located and also his county of residence.
You can also try looking up his name on www.okcountyrecords.com Not every county is there, but most of them. It should get you started.
I would not sell in Carter Co. Due to a number of class actions, & Clouded Titles.
Why Nell? We have an offer to purchase and I am not clear on what to do.
The offers in Carter are due to an evolving deep Woodford horizontal play that was a bit stalled during last year’s Covid price drop. Depending upon the township, there are pending hearings for the deeper horizons and activity seems to be warming up.
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Who is offering & where, I say don’t sell & slow on lease, getting an offer is always a clue that the area is a good one.
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