I have inherited mineral rights to 5 acres in section 4, township 5N, range 10E. Evidently my father bought the rights in 1953 and leased the property once in 1961. I was unaware of any of this until I was contacted and offered a contract to lease the rights. My attorney contacted the company with some clarification questions and I never heard from them again. As I read through the various blogs I realize there is an a lot of information to digest and try to understand. What are the best sources to streamline this process? How does a rights owner determine if there is any activity in the area of his/her property? Any advice, suggestions, or comments would be greatly appreciated. Thanks, George (Larry) McWhirter
Loaded questions that it has taken most of years to learn the answers to. You may want to start by contacting the Oklahoma Corporation Commission - Donna Darnell. They offer a wide variety of resources to assist mineral owners!
If you own mineral rights, you are in the business, like it or not. What other business can you be in where you don't have to be knowledgeable and you still won't be taken to the cleaners? There are none. Help with your mineral rights can be hired but if you aren't knowledgeable, how do you know they are doing a good job? If your minerals are in Oklahoma and you want to expend the minimum amount of effort, you can just wait to make an election in the pooling as some people still do after expending effort and money.
Claudia Kemmerer said:
Loaded questions that it has taken most of years to learn the answers to. You may want to start by contacting the Oklahoma Corporation Commission - Donna Darnell. They offer a wide variety of resources to assist mineral owners!
Thank you Claudia. That looks like a good place to start.
r w kennedy said:
If you own mineral rights, you are in the business, like it or not. What other business can you be in where you don't have to be knowledgeable and you still won't be taken to the cleaners? There are none. Help with your mineral rights can be hired but if you aren't knowledgeable, how do you know they are doing a good job? If your minerals are in Oklahoma and you want to expend the minimum amount of effort, you can just wait to make an election in the pooling as some people still do after expending effort and money.
Thank you RW for taking the time to reply. I have do idea what "making an election in the pooling" means... I have a lot of reading to do. Thanks again
Here's a good explanation of "forced pooling" or "making an election in the pooling" in Colorado. It will vary state by state but only slightly most likely. http://www.l-a-n-d.net/resources/what-is-forced-pooling/
George L. McWhirter said:
r w kennedy said:If you own mineral rights, you are in the business, like it or not. What other business can you be in where you don't have to be knowledgeable and you still won't be taken to the cleaners? There are none. Help with your mineral rights can be hired but if you aren't knowledgeable, how do you know they are doing a good job? If your minerals are in Oklahoma and you want to expend the minimum amount of effort, you can just wait to make an election in the pooling as some people still do after expending effort and money.
Thank you RW for taking the time to reply. I have do idea what "making an election in the pooling" means... I have a lot of reading to do. Thanks again
Larry, I have just read the reply above by M C Warren with the explanation of forced pooling in Colorado. In Oklahoma, we do not have an option to "go non-consent". Others who know more about pooling in Oklahoma will probably give you a more complete lesson.
Just a comment, it is possible that, depending on the way your attorney responded with the "clarification questions", the company may have considered you to have shown no interest in leasing. Hopefully he was familiar with oil and gas lease contracts. There is also the possibility that no one is interested in developing the minerals in your section at this time.
I do know that our pooling process does make sure that all mineral interests within a spacing and drilling unit will receive a proportionate share if production is achieved. It is true that anyone who has not chosen to negotiate terms via a lease will have several choices to consider. This link is a fairly recent Final Pooling Order for a unit 2 sections west of your mineral interest. http://imaging.occeweb.com/AP/Orders/OCC4263234.PDF
Almost all drilling and spacing units in Oklahoma will have a Pooling Order. I cannot remember a pooling order that does not have numerous mineral owners who cannot be located. These funds for bonus consideration and eventual production are initially registered in the Mineral Owners Escrow Account (MOEA). This registry is maintained by the Oklahoma Corporation Commission. After a period of time (I think 5 or so years), the funds are transferred to the Unclaimed Property Fund of the Oklahoma Treasury and held until claimed by the owner or rightful heirs. Links to these sources can be found by clicking on the Oklahoma Chapter (OK-NARO) of the National Royalty Owners Association at www.naro-us.org . I think it is good to check the names of family members who may have owned mineral interests in Oklahoma. Good luck.
Larry,
I just received an offer on minerals in Sec. 4, T5N-R10E. United land Co. LLC (405-840-2666, [email protected], aka Mike Caldwell) is representing Silver Creek Oil & Gas, (5525 N. MacAuthur, Ste 775, Irving , TX 75038) I don't have phone #. I have been offered $200 per net acre bonus, 3/16ths Lessor royalty, 3 yr term + option to extend, gross acres of 161.55 (Lots 1 & 2, S/2 NE/4. I have not read the lease yet &; know there could be devils in the details.
My father as did yours, purchased and passed on these minerals. In 1938 C.E. Morgan sold to Ben L. Robertson (my father). I have worked with both of the above named co's before and have had no complaints to date.
I am interested in any info. anyone else has to offer.
Louise, thank you very much for sharing this information. It's great to have these resources to help us mineral owners create transparency in this process.
Has United Land Co sent you a lease yet?
Louise If you are not leased I would think you would have been named in this pooling for Sec. 4-5n-10e .
Larry, Ron & All,
As I have minimal knowledge in this area, I so appreciate all the info. and corrections I receive on this site. Hopefully my disclosures, at least in a small way, will benefit others.
My family LLC leased w/ Silver Creek (United Land represents them) in 2011 and am bound by their option to extend. They have offered a "new lease" w/ the same terms. I believe I will receive the same bonus if i accept their "new lease" (thus binding to another 3yr primary & 2 yr extension) or if they extend the existing lease w/ the existing 2yr option. I see nothing to gain w/ the the "new lease".
FYI, I have cut and pasted the response to an inquiry I made about the "new lease" below.
"... Hi Louise, ... As for the terms you listed (requested) below, 1/4 royalty is not available at this time but possibly at a later date. The oil and gas lease that you are subject to will expire next month but there is a 2 year option to extend clause in the exhibit a. Silver Creek has expressed an interest in obtaining new leases in this section but has indicated they will likely exercise the option to extend the additional 2 yrs on all interest unless new leases are obtained based on the same terms.
As for the Pooling that took place, the Pooling Order is set to expire December 31, 2014. I am not certain as to Silver Creek’s plan to get this unit drilled by that time so they will likely re-pool. ... " Per United Land Co. agent, representing Silver Creek.
Thanks to all on this site.
I also see nothing to gain.
Larry- Did you receive any help on this?