Cleveland County, OK Capstone Company

[Hilary_Toups]

My mother received a letter from Capstone Land Company stating they plan on drilling a well in Section 10-07N-02W and will be going before the Oklahoma Corporation Commission to have this section pooled.

They are extending two offers: $650.00 per net min acre bonus 12.5% Royalty in the event of production 3 year + 2 year option to renew or $550.00 per net min acre bonus 18.75% Royalty in the event of production 3 year + 2 year option to renew

Is it better to accept one of these offers or wait for the pooling? I thought the pooling was like an automatic lease.

Thanks for any advice!

[M_Barnes]

Personally, I always ask for what they are offering at 20% and 25% just to see if they have those options. I do not allow an option to renew.

If you have not leased in a while, it would be a good idea to get a good oil and gas attorney to review any draft lease as it will need edits to get it fairer for the mineral owner. If I do not have much acreage or cannot get a good modern lease, then I go for the pooling.