Hello,
My mother has mineral rights in Stephen and Garvin Cty., and paperwork (probate) has recently been filed in both counties. I’ve received an oil and gas lease from JP Drilling Fund, LLC. The Garvin land is location S/2 SE/4 NW/4, of section 19, Township 1 North, Range 3 West and containing 68.42 gross acres. Can you help provide some guidance on the acceptable lease amount? Thanks, Melissa
Continental is “could be” the operator. JP Drilling was offering a 1/4 lease, so ask for it. You may not get a bonus for that royalty, but that is okay as the higher royalty usually far outweighs the bonus in the long run. There are quite a few other companies leasing in that area. Bald Mountain Energy, Blackacre Resources, Blanton Energy, Camino Natural Resources, Bullet Oil & Gas, Continental Resources, Core Resources, Dry Creek Operating, Eagle Ridge Ventures, Edgewood Oil & Gas, JP Drilling Fund, Manzanillo CR LLC, MK&P, Ovintiv, Palmetto Energy, Parker Investment Group, Quantum Resources, RD Williams & Co, Scissortail Exploration, State Oil Company, Tarpon Jumper , Uplift Leasing, Western Resource Partners, etc. Many of them have filed leases at 1/4th (25%), so I would not go for less than that.
If you have never done a lease before, it is very wise to get an oil and gas attorney to look over the draft lease as very few of them are in the mineral owner’s favor. They can help you negotiate a better lease. That lease can hold your family for decades, so it is very important to get good advice. The clauses in the lease are so much more important than the amount of the bonus!
Thank you, I appreciate the information.
Ms. Barnes,
Can you provide me with direction on how to determine actual number of mineral acres I own?
The easiest answer is to ask JP Drilling what they are showing is your net.
M Barnes: You state that Continental is going to be the operator. I don’t see any OCC cases covering this section. Are you aware of a pooling that would determine who is going to operate this section? Thanks.
mgda2005:
FYI, the S/2 SE/4 NW/4 of Section 19 only contains a gross of 20.00 acres. Not sure where you came up with the 68.42 gross acre number, unless you are also counting acreage from another section, maybe the Stephens County parcel. Good Luck. Todd M. Baker
I will amend my comment to Continental “could be” the operator. They have the most leases filed in that section 19. Camino might be the other option. They are also active in the township,
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