Can anyone let our family know what current Oil & Gas leases are being offered? Ours came in at 1/5th, $1,000 per net acres. Grady County Section 18, 8 North, 6 West.
Lease offers are not usually public unless someone on the forum wants to share. The closest that you can come is from nearby poolings within the last year. Camino pooled 26-8N-6W in December 2021 for $1000 1/8th, $750 3/16ths, $500 1/5th. Your offer is higher. If you have not leased in a while, it would be wise to get an oil and gas attorney to look at the lease terms and clauses. The draft you are initially sent is probably not in your favor and will need some negotiation.
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Hello - we seem to have the same terms for Sect 18 8N 6W. I was told there would be a forced pooling soon? Have you heard the same thing?
I do not see a pooling posted yet for 18, but it may come eventually. Welcome to the forum.
Thank you! I’ve read many of your posts - very helpful! Where would I see a pooling posted? I’m getting to know the various information sites, but am still getting my bearings.
If you have your name and address properly filed in the counties where your minerals are located, then you will get mailings from the Oklahoma Corporation when your section is impacted. If you are already leased, then you will not get notice of pooling, but you will get notices about spacing, wells, increased density, etc.
The OCC has a new website for case filings and you can look up by your section, township and range. Case Processing Online
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So looks like we got the pooling order. I have a question - if Paloma is pooling but another company wants to negotiate a lease with us, what is the other companies likely reason for negotiating a lease on property that is being pooled? The only obvious thing to me is that the pooling has better terms than the lease they are offering, but I’m new to this so don’t know if there is a different angle. Thanks in advance for any info- or point me to a prior article if its’ relevant.
The other company may want to use a lease to farm in as a working interest partner. I have often gotten better lease clauses from a third party leasing instead of the operator. It just depends upon the situation. If I do lease to a different party, then the time deadline is important. Just to be safe, if my name is on the pooling respondents’ list, then I send a letter by certified mail return receipt letting the operator know that I leased with XXX company for XXX$ and XXX royalty and if they do not file the lease in time, I would like to select option BBB from the pooling order. I do not hand over leases without getting paid, so that usually prevents problems.
You only have 20 days from the order in which to answer. You can choose to lease with someone else, but that lease had better be filed by the end of the 20 days if you want it to count the way you want it to. Sometimes I do lease with another company, but only with a leasing agent that I know will file in time and I get paid up front. You don’t want to get caught in a “pickle” between a lease that is not filed that you thought would be filed, but you haven’t been paid and the pooling order time frame is up. You would get stuck with the lowest royalty.
The lease does not need to be filed. It’s called “Arm lengths transaction”
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