Lease in Section 29 8N 3W

Oklahoma Mineral Rights McClain County, OK
1

I am in the process of negotiating a lease with Reef Petroleum on my mineral rights in Section 29 8N 3W, McClain County, Oklahoma. I am not the surface owner. Reef has a paragraph in their lease agreement that I have not seen before. I states:

This lease also covers accretions and any small strips or parcels of land now or hereafter owned by Lessor that are contiguous or adjacent to the above described lands. For the same consideration stated above, Lessor further grants, sells, conveys and warrants to Lessee a subsurface right-of-way and easement in, through and under the leased premises for the purpose of drilling oil and/or gas wells to, and producing through said wells oil, gas or other minerals, from, lands other than the leased premises, together with the right of ingress and egress to said wells.

What is Reef trying to accomplish? Is this language standard in Oklahoma Oil & Gas leases?

2

Not common in my OK leases.

3

Don, you might find a search or a reference on “Mother Hubbard Clauses” to be helpful.

1 Like
4

I would call it a Mother Hubbard clause as well, but have not seen it worded that way.

5

Don, did you ever end up negotiating with Reef? they are currently trying to lease my minerals in sections 29-8N-3W and 20-8N-3W? Hoping to figure out what is fair at this moment in time or should we just wait?

6

Make sure you get a separate lease for each section. You do NOT want them on the same lease.

7

I did get a lease with Reef on Section 29-8N-3W. I got $250 an acre, 1/5 royalty and 3 years. I was more concerned with getting the 1/5 royalty, royalty at gross not net, no indemnification, depth clause, and limiting the Mother Hubbard clause than the up front money. They would not do a ¼ royalty.

Don

9

Thank you so much for your response. We just received an offer: No Cash and ¼ royalty, 3 years +2 year option

And to Ms Barnes Point they referenced both sections and tried to link them. I’m so grateful for the help.

10

Personally, I never do the two year option. As we saw in the last 18 months, a whole lot can happen in a short period of time, so I do not tie up our land for five years under their terms.

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Thank you! I am so new to managing our minerals I need all the help and advice i can get, I so appreciate it.

12

The Mineral Help tab above is a useful place to start.

Also get familiar with the Oklahoma Corporation Commission website. They have useful publications for the mineral owner. Their website is free. Here are some handy sites that I use.

Pending OCC cases at the following link: http://www.occeweb.com/caseprocessingonline/default.aspx

Actual cases if you have the case numbers: http://imaging.occeweb.com/imaging/OAP.aspx

Docket proceedings: http://www.occeweb.com/ap/docket_results.html Well activity: http://imaging.occeweb.com/imaging/OGWellRecords.aspx

Production: Gross Production

The National Association of Royalty Owners has an Oklahoma Chapter. Their mission is to help mineral owners understand what they have, what their rights are and to teach folks how to handle and steward their minerals.

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