I live in Greeley on 28th Avenue between 13th and 16th streets. So far, I've resisted the unsolicited offers to sign away my oil/gas/mineral rights, mostly because said offers seemed paltry. Now I'm faced with a forced pooling situation and I'm not sure what my options may be if I have any at all. Someone told me recently that it's best to accept the forced pooling contract, but I find that hard to believe since stated payouts are at a much lower rate than any offers I'd seen previously.
I've read that hiring a lawyer for assistance is an unnecessary expense but I'm a completely uninformed rube when it comes to these matters. I guess I'd better get educated quickly. Anybody else in the area dealing with a situation like this? Can you provide any advice or guidance?
If you are force pooled, the landowner royalty will be 12.5% until the well reaches payout (or all expenses have been recouped by the working interest owners). If you enter into a lease, you will receive a bonus consideration upon signing and, if you negotiate it well, you should receive an 18.75% (3/16th) royalty.
If you check on the COGCC website, you can locate your interests by legal description and check to determine if there are any wells drilled or wells permitted in which your minerals would be involved. You could then decide if you want to roll the dice on the drilling, completion and production of those wells. Do the math to see what your annual royalty payments would be and then look at whether a lease or the sale of your minerals would be financially rewarding.
I have sold minerals near the Greeley Country Club for a relatively significant per acre price.
If you want any further information or want to discuss this further, you can send me a friend request and we can chat privately.
Cary, in regards to Maja's comment. Be cautious in 'doing the math to see what your annual royalty payments would be." This will be prove to be a difficult calculation to complete as you do not know what the future production could bring forth.
Furthermore, being forced pooled is the worst economic situation you could enter into with your mineral interest.