I had inherited some mineral rights from my mom a few years ago and had started to look into what all this entails. I haven’t kept up with this but now I have a question. When going through her papers, there were a lot thrown out until I noticed some that mentioned the leases. From what I have I show the last lease she signed was in 2000. I am now getting calls from Landmen wanting to discuss leasing. I have no idea what to do. The gas royalty interests are as follows: .0218750 in the NE/4 of Section 30, Township 17 North, Range 4 West, Logan County, OK; 0.1718750 royalty in the W/2 SE/4 of Section 32, Township 18 North, Range 3 West, Logan County, OK and .0156250 royalty in the N/2 NE/4 of Section 15, Township 17 North, Range 4 West, Logan County, OK. I have read through what papers I have and I don’t understand what I should or should not do. I receive on an avg. $115/month which isn’t a lot but is at least something but I have no idea what is producing and what is not. One letter I received from Lowry Land Co states that on behalf of Stephens Energy Group LLC, they are acquiring paid-up oil and gas leases and request I lease Section 15-17N-04W of 10.00000 acres for $250 per net mineral acre, 3/16 royalty and a 3 year term with a 2 year renewal option at $250 per net mineral acre. I am thinking this isn’t quite enough? Is this something I should be considering as far as leasing? I have had several calls from Landmen but I haven’t responded. Should I be contacting these folks to see what their terms are? Should I be leasing at all? This is where my confusion comes in.
I would appreciate any help you can give me.
Paulee. It sounds like you have several tracks of minerals and that you are being paid on one (or more) and that others are not producing. The company is looking to lease the nonproducing minerals and potentially drill on it. Your check stub should tell you which of your tracts are producing.
I sent you a friend request. I can help you understand some of the things you may or may not have if you wish.
I accepted. That would be great! Thank you
Paulee, friend me with the blue icon next to my name. Kirt or I can help you with the lingo. Just make sure that you are not selling any of your acreage. Ask what they are offering for 1/5th. You never want a two year extension. The lease draft they send will not be in your favor at all. Many of the clauses will need to be re-negotiated to your favor. Kind of overwhelming the first time, but once you get the hang of it, you will be fine. There are some very specific terms that you want in those leases. The most important is NO POST PRODUCTION COSTS whatsoever, no "enhanced", not nothing. Contact us.
I tried to friend you. It didn’t work. Kirk sent me a friend request. Can you do the same. I do appreciate all the help.
Paulee,
$250 per acre is not a good offer and I never lease for 3/16ths and do not sign a lease with a 2 year option to renew. You can friend me and I can give you some details of your area so that you can make sure you are getting fair leasing offers.
Martha McMorries
Thank you. I tried to friend someone else and it didn’t work. Would you be able to friend me?
Get some good lease advice and minimize the post-production expenses. In the long run that is more profitable than worrying about what they are paying and what percent they offer you.
Also Stephens reputation in Arkansas is not good...
attached spreadsheet are SALES - common rule of thumb method of LEASING is 1/3rd the sales price (i.e.- a mineral right is worth 3 x the lease bonus)
409-Logan_SALES.JPG (103 KB)
