We were informed we own mineral rights in section 7N 10E owned by my great, great, grandfather. Surprise! As we live in Michigan and know nobody that has been through something like this and have many questions. Apparently we were pooled and our offer was from Meadows for $650 an acre and 3/16 or $200 an acre and 1/5. Is this good? Bad? Standard? We honestly have no idea what we are doing! How do we know if there’s even any drilling going on there? Please help! 
Jen, welcome to the forum. I too live in Michigan. Grand Rapids area. When you say you were pooled, do you have the documents and is that where you are getting your figures?
Grand Rapids as well! Wow! No, we received the document before the pooling.
Yes though, I have the documents from Meadows oil and gas and also the pooling hearing papers. I just haven’t signed the lease agreement yet
Hi Jen, welcome to the world of mineral rights! How quickly do you need to respond to the pooling (in Oklahoma, I think you have 20 days)? You will need to make a choice on the lease option, or you will get the default, typically the smaller % and bigger bonus.
When were the pooling papers sent? I sent you a friend request so we can talk in detail. If the papers are actually a Pooling Order, they will ask you to make a decision and respond within a short period of time, otherwise a decision will be made for you. 3/16 plus bonus. It sounds like Meadows is offering lease but that might not be in your best interest.
Petroquest is drilling in the southern part of 7N-10W. What section are your minerals in?
The pooling papers were sent November 10th, but as I look at them it says "Notice of Hearing" so maybe the pooling hasn't taken place? We are in section 13.
Jen- unless you absolutely need the extra cash, always go for the higher royalty. Obviously, this is only my opinion, but if it is a good well, you will make it up in no time and possibly much more. I know that there is a statutory pugh clause in OK, but make sure the clause reads both horizontally and vertically. That is, after all the drilling is done, that they have to release your interests outside of any pooled area AND 100' below the deepest producing depth. VERY IMPORTANT!!
Pugh clause? Lol! Ok I will check! Thank you! Thank you!
Hi Jen, the notice of hearing should give a date for the hearing. From what you describe, this pooling has not yet taken place.
You don't have to be afraid of being force pooled in Oklahoma. As a min rights owner, you will be paid if you are pooled. There are advantages to leasing ahead of that, but all things considered, it's really fine to wait.
The companies will sometimes try to nudge you into leasing ahead of time.
Figure out where you are in the process, and how many nma (net mineral acres) you have.
You have come to the right place for advice! This forum is fantastic for newcomers to the min rights topic.
Jen ... you have time. Don't panic. You can trust Meadows O&G. They are good, decent, honest folks! Call Meadows and talk to Melinda Meadows.
In this day and age, the reason I don't like being pooled is that I am then at the mercy of their terms. I am seeing too many net proceeds leases these days.
Just my opinion.
Jen, you are getting really good advice here. I recently put together a "starter kit" and posted it on this county forum. Here is the link http://www.mineralrightsforum.com/group/hughes-county-ok-oil-gas/forum/topics/info-for-mineral-owners or you can just scroll down from your post to Info for Mineral Owners posted Oct. 28.
@Claudia, Meadows oil lease is also “net proceeds” which doesn’t make me very happy. But not sure if I can do anything about it?
Great starter kit, Wesley!!!! Thank you!
Jen ... I got them to approve an "Exhibit A" which clearly states it is a gross proceeds lease. Not sure why they insisted on the body of the lease being net proceeds, but the lease clearly states that the attached Exhibit "A" is a made a part of the lease. Paragraph 1 of my Exhibit says this is a gross proceeds lease, no deducts allowed. Wesley?
Claudia, your "Exhibit A" should have a declaration similar to this:
"Notwithstanding any language to the contrary, it is expressly understood and agreed that the provisions hereafter shall govern over the printed text of the referenced Oil and Gas Lease, and shall apply to the parties hereto, their successors and assigns."
I think it is easier for the companies to leave the text of the lease alone. I have looked at quite a few filed leases (on line) and looks like about 97 or 98% are signed as mailed. No exhibit, and usually not even marking through and initialing the offensive portion of the warranty clause.
How would I be able to go about doing this?
I also understand why this happens as I had no idea I could make provisions to the lease sent to me.
Jen- you have the power to negotiate the lease terms. You need to know what is most important to you then negotiate reasonably. This does not mean you will get everything you want, but this is a process of negotiation, not a rubber stamp of their terms. The Exhibit is an easier way to change the terms. It can be helpful to you as well, because it is easy to change the meaning of a clause without intending to. As Wesley says, it is very important to state that the Exhibit "A" terms prevail when in conflict with the printed provisions of the lease. I like to see that on the face of the lease if space permits. Just my 2 cents!
Jen said:
I also understand why this happens as I had no idea I could make provisions to the lease sent to me.