Thanks, Martha. I talked to some of the locals and they thought the well had already been drilled and completed. Since I had posted my request for information, I was able to (kinda) break the code on the OCC website and found the request for permit to drill, but no completion yet. This dovetails with what you are telling me. Appreciate your time!
Anything going on in Section 21, Township 14N, Range 9E?
I have a lease offer giving me 3 options : $200 per acre & 1/8 interest; $150 per acre & 1/6 interest; $100 per acre & 3/16 interest. Each option includes a 3 year lease with a 3 year extension. Which of these options is the best?
The person who phoned me with the offer is a landman with Arroyo Land Service. He did not know the oil company who is interested in drilling, so I presume he is a third party and interested in only getting me to sign a lease so he can then sell it to the oil company. I could not find anything on line for Arroyo Land Services.
I am a 75 years old widow and I know very little about oil leases. I guess I will have to get an attorney but I would appreciate any advice you can give me before doing so.
Thank you...Hilda Razook
Hilda, none of those offers is very good for you, only for the land guy. However, they can be improved. If he doesn't know who he is working for, that is a red flag right there. Also, no way you want a three year extension on any of them. You also do not want the 1/8. If you want to friend me (touch the blue picture and follow the prompts), I can do a bit of research in the area and see if there are better offers. I can walk you through your options. Horizontal drilling is moving into Creek, so I think you can get a much better deal.
There is a pending pooling order in sec 22 right next to you. When it is posted in a few days or a couple of weeks, we can see what the current offers in the area are. Better not to rush into this.
hilda I looked at their lease. To start it needs a depth clause and (2b) a no deduction clause, limit to shut in royalty clause. (13)You give no warranty of title expressed or implied,(9) no top lease clause,(17) no option to extend.(3) Must have rig on site after expiration of lease to extend. (15) You give no failure to comply clause. There are several Co.s leasing around you, tell all of them this is what you need ,they will know what you are talking about. There are poolings pending in 22,25,and 26 so they will be drilling there soon . Take you time and come back here with questions. After you get a copy of your lease or leases. You can take them to an attorney if you want.
Thank you Mr. Barnes and Mr. McKenzie. I have not seen any lease, only a phone call. I will let you know when and if I get an actual lease. Thank you for being so helpful....Hilda Razook
Just got a phone call from the landman from Arroyo Land Services. He sent me a blank copy of a lease (paid up) and I questioned who was leasing my property. He told me he does not know, nor does he know the name of the oil company he is working for. All he know is that he works for Arroyo. He does not know if the oil company has applied for a permit. Finally, he admitted that I would be leasing to Arroyo Land Services and they would turn my lease over to the oil company.
Am I correct in not considering leasing to a second party? Should I be leasing directly to the oil company who will be paying the royalties?
Please help. The person I am dealing with does not seem to know what is going on. Something is wrong. Thanks...Hilda Razook
You can lease to a second party, but not always a good idea if you are not familiar with the company or the person. You need to ask if the landman is a member of AAPL. If they are not, then they may not be held to the same levels of ethical standards as those who are AAPL. (American Assoc of Petroleum Landmen.) So that is one red flag. So far, this one seems particularly uninformed.
You don't have to lease in a hurry. The first offers are often half to a third of what they will be. Since Horizontal drilling is just now starting in Creek, you might want to hang back a bit and see what develops. You want a really good operator. If you wait until the pooling notice comes out, you will usually figure out the operator and then you can decide to lease or pool before the hearing actually happens.
If you want to friend me, I will go through the lease with you and tell you some of the clauses that you do want, don't want, what to change, etc. I can also explain pooling to you so you know what that entails. Then you will be prepared with better knowledge to make a good decision.
Keep meticulous records. I actually rarely speak to land men on the phone. All correspondence must be on paper. They hate me! But they need me! Too many times a phone offer or verbal promises mean nothing. I want a complete paper trail for my files.
Mr. Barnes
Thank you for the information. I will wait until the pooling notices come out. In the meantime, I will keep searching to see if I can find out the status of the Arroyo Land Services, Inc. Not much information on their website. The Landman tells me they have at least 400 leases, so maybe someone can give me information about this company.
Thank you again....Hilda Razook
M Barnes: unable to figure out the friend request but would like to be friends. Your comment about LANDMEN disliking you cracked me up. I agree very much with your reply.
Stephanie, to friend, just hit the blue picture and then follow the directions.
Edmund, no activity in 35, but there was minor activity in 26, just to the north of you in 2012 and 2013 by F&F Energy. It depends on what kind of research. This site is pretty good for basic info on leases and clauses. okcountyrecords.com is pretty good for just looking, but you have to pay to print. Not all counties are online. The Oklahoma Corporation Commission website is free, but unwieldy if you just want to hunt down well info. You can get pooling prices there which will give you general lease trends, but nowhere will tell you specific leases and prices since they are confidential.
Does anyone know which company will be drilling in 21-14N-9E. The Landman handling the leasing for Arroyo Land Services does not know, or is keeping the information secret. Is it customary to keep this information secret?
Thanks for your help......Hilda Razook
Mr. Barnes, Thanks for your response to my request. I appreciate it.
Hilda, I am guessing WFD Oil Corporation out of Edmond (whoever that is….small company). They have a bunch of pending hearings in 22 and 24. Veteran Exploration Co is also in the area. Most of the wells permitted to date are pretty shallow, so these are probably local companies. You might look them up on the BBB. Or it could be someone totally different. I don't see a permit for 21 yet.
Martha, Thanks for the information.
I have received a second lease offer for my mineral rights in 21, 14N, 9E. Since I do not own the surface rights, should I be concerned about the terms of the lease, such as, the Pugh clause and depth clause? Should the lease contain specific wording covering vertical drilling, in addition to horizontal drilling? Should I coordinate my lease with the owner of the surface rights?
I phoned the landowner and he has not replied. I would appreciate any guidance you can give me,
Any one know of leasing in section 34 15N 8E?
HIlda, YES you should absolutely be concerned by the terms of the lease. The mineral owner has the dominant interest. The decisions you make now may affect your family for 40 years. You do not need to coordinate your lease with the surface owner. There are some protections for the surface owner in your lease, but the oil company has a separate lease with the surface owner. You definitely need a Pugh clause, shut in clause, no deductions clause, depth clause, do not warrant title, etc. If you want me to look at the lease you have been offered, I explain it to you and give you some tips on how to make it better. Use the "friend" discussion area and we can get started.
HIlda, Sec 22 next to you is pooling, so you want to make sure you know what those amounts are before you sign anything. You want equal to or better than what was offered there. It is not posted yet.
Karla, I see six posted leases in 34-most at 3/16th. Amounts are not public. However, the SW4 of 34 was pooled in June (160 ac spacing). The amounts were $100 for 1/8th (don't want), $75 3/16th (other option.) So if you were in the SW4, your time for answering is way past. If you are anywhere else in the section, this is what the lease offer will most likely be.
This is my first post. Thank you all who have joined and posted here for educating me. I look forward to adding my information and posting my questions.