Just curious what others are getting offered in the area? I was offered $4500/acre for 3yr @ 1/5. Jones Energy
Where does one find information about potential or pending activity? That is, how do you follow “progress” from afar?
And any activity in 7 x 7? We have old vertical wells there and leased this year to Rebellion.
Betsy McBride
I leased this area, Section 24, earlier this year for $4500 and 1/4. I have recently been pushed back on 1/4 leases but still able to negotiate to 22.5%. If this is the offer, you may be able to counter with better consideration in bonus and/or royalty. Just make sure that you are not giving up any strong positions in your contract with Jones. Jones pooled S27, order issued 11/30/2017 for $5500 and 1/5 or $0 and 1/4. And there are plenty of pooling applications pending right now in the 9 spot area around S28.
Betsy, can you add the section. 7N-7W has 36 sections. Each one will have a different answer.
Yes, it is Section 32. Old vertical wells were Edna and Lou Williams (Ward Petroleum).
Lots of leasing in 32-7N-7W by Rebellion in 2017 & 2018. Camino is leasing in 2018. Nothing posted at the OCC yet, but I wouldn’t be surprised to see something soon.
Just curious do you also own the mineral rights when you are getting these kind of offers?
I ask because I got an offer of only $750 an acre (for a 13 acre pad) but not even for a lease just a one time payment in Wamsutter, WY area by a company who has 700+ active wells around there. BP and a lot of large companies are nearby.
Thanks!
A long time ago, back at patent (the original assignment), the mineral rights and the surface rights were bundled together. That was called “fee simple”. Over time, the minerals can be severed from the surface rights. The mineral rights have precedence over the surface rights. That is why the surface owner cannot stop mineral drilling underneath, although they can request that a rig or road be moved to a less disruptive portion of their land. If you have offers for a pad on the surface, you own the surface. You may not own the underlying minerals. That information can be found in the county clerk’s office where a deed would have been filed severing the rights. If there is no deed severing the rights, then you may own the underlying minerals. If they are drilling under you and you were not offered a lease, then you are probably severed. You could try asking the company that offered the surface lease and ask who has the minerals.
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Thanks M Barnes,
I have seen “Fee Simple” in some of my holdings ( acquired in the 1930’s ) , and wasn’t sure of the meaning —
By the way – Thanks again for your advise on placing language in the lease limiting the rights of the lessor ( Attachment A ). ( Receiving much additional Royalty income as a result – THANKS !!! )
This purchase activity has gotten out-of-control — I bet I have received 100 letters with offers!!! These buyers must be finding some good deals with these mass mailings.
Hopefully Forums like this will help people get the better deals for themselves and not give away income to the flippers out there.
Thanks
M_Barnes, can you please PM me? I’m new to this site and I can’t figure out how to contact you lol. I’m so new to all of this
So we had someone show up at our house from Jones Energy/Schonwald wanting to lease our mineral rights 28-10N-07W… We have never had anything like this and literally no nothing about it… after just a little bit of research we signed their 3 year lease for $4,500/acre (We only own like 0.61 of an acre)… Fast forward to well over 30 days after signing and we still have not received anything. We called the man that showed up and he said they’re having trouble with our mortgage company and not able to get a mortgage subordination so he was going to send a check anyways made out to us and the bank and let us sort through it basically… Yesterday we got a document that has been “Filed” in the mail basically putting us into the pool instead I believe (but not really sure). Called him and he said they don’t know if they want to send the check or not…what’s even happening??? Should I call one of the other companies to see what they’re offering instead? I have no idea what to do or where to go from here… Thanks for any advice/input.
I am in the same section as you. I’ve already received my check from Paladin Land Group and my name was also on the Pooling order. My assumption was, they put every mineral owner on the pooling order, no matter if you have leased your minerals or not. Just so they can cover all the property
I’m wondering if I should contact a different company… can you give me your contact? Jones said they aren’t sure if they are going to cut us a check because of the mortgage subordination. Our mortgage company said if they’ll just cut us the check then they will endorse it but Jones seems to be backing out. Did you get the same offer of $4500/acre?
So if you leased and youre in the pooling…do you get both? I was just told the pooling may offer more than they’re offering for the leases.
You cannot do both, but I can probably explain some of the timing.
The operator will have a land company or in house land group give them a list of those that are unleased as of a certain date. They will turn that into the OCC for publication. Then the notices will be sent out. Various companies will be leasing in the next few weeks to months. The pooling hearing will occur and the orders will be issued. You have 20 calendar days to claim one of the options if you have not leased. Any mineral owner that does not have a lease filed in the county courthouse by the end of the 20 days or a chosen option in the pooling will be assigned the lowest royalty option. Until that 20 day deadline, you can lease with anyone.
However, you have an issue of timing here. Jones has your lease and you don’t have money and the pooling is pending. You should immediately request that they return the signed lease. (they may or may not do it.) They may file it instead and you will have to wait on your money. If they return it, then you are free to lease. If they do not return it, then you will have to wait on the pooling and see if you are included. Right now, there are two companies that have filed for pooling. TPR Mid-Continent and Jones Energy. The OCC will decide who wins. The TPR does not have a hearing date. The Jones has 10/29 date listed. Doesn’t mean it will happen then. Since Jones has your lease and they are pooling, they may not want to return it.
I do not know the current offers, but pooling data is public and here are some of those recent orders on either side of 28.
Jones Energy sec 27 11/30/17 $5100 3/16 $5000 1/5 $0 1/4.
TPR Sec 29 4/24/18 $5500 3/16 $5000 1/5 $2500 1/4.
We talked to Jones Energy agent about leasing. We offered our standard lease at the rates they offered, and said we would swap a signed lease for check. They declined to use our lease, offered theirs. We told them some of the terms were not acceptable, and asked if they were amicable to making changes. They said no changes. We said no thanks. Guess we’ll see what happens as pooling progresses. Good to know TRP/Mid-Continent are trying to pool also. I have not heard from them. Our parcel is pretty small also.
I talked to jones today and they aren’t wanting to mess with our mortgage company so they’re sending the lease back… where should I proceed from here?
You are free to lease until the pooling order is finished. Or you can just wait for the pooling and pick your option with whichever company is chosen as the operator. These companies have filed leases recently in 28-10N-7W
Kalos Resources, LLC Schonwald Land, Titan II Energy, TPR Mid Continent
I got $6k acre +1/5. If you are wanting to lease, I would contact Billy Reeves with Paladin Land Group. You should’ve received a letter from Paladin as well.
So how will the other companies know that we are not under lease anymore?