Kingfisher County, Section 1, Township 17N-Range 8W
We've been offered $750 per net mineral acre, 1/5 royalty, 3 year term or
$1000 per net mineral acre, 3/16 royalty, 3 year term by Shale Energy LLC
Anyone know if this is a fair deal?
Also, I'm a newbie, but I'm wondering is there oil and/or gas here, if they plan vertical or horizontal drilling, and at what depth they plan to drill. How can I find out this information?
Go to the OK Corporation Commission at http://occeweb.com/. You may be able to find info there. As for the Bonus and royalty interest you have been offered I will make the observation that with even a modest well -- the higher the royalty the better. Royalty checks can go on for many, many years and can contribute more to you and your family (and heirs) over time. The bonus money is always appreciated - but it can be a one time event. When that party is over, it is over! I have difficulty as a small mineral interest owner negotiating a 1/5 interest.
The offers are close to what we got in S1 T19 R8W. Never settle for the first offer! Counter offer, haggle, counter offer again, haggle some more. (Is "haggle" a real word?) Sometimes they will tell you that you have to make a decision "Now!", but you don't. Call other companies to see if they are interested in leasing. If you know other mineral owners in the section, or surrounding sections, check with them. Remember, you have something they want, and if they want it bad enough, they will pay you enough.
Thanks Susan!
Googled "haggle," and it's real, of course.
Do you know if there is a general rule in haggling? For example, do you ask for double what they originally offer? Or 50 percent more? 25% more?
In our case, would asking for $1500 per acre and 1/4 royalty be in line? Not trying to be greedy, it's just we don't really know.
Thanks again.
They will force pool you before they pay that . Here is what they were order to offer in a pooling that was as close to you as I could find.
Steve,
When you read the pooling posted by Ron you will notice their are several options presented. As the royalty interest increases from 1/8 to 3/16 to 1/4 the bonus amount decreases. Only in the most active areas (generally when drilling is imminent) will you be able to get a lease bonus and 1/4 royalty. Your first decision will be whether you want a large bonus or higher royalty interest. In areas where multiple horizontal wells are being drilled in one section the higher royalty interest well usually pay more in the long run but everyone's situation is different.
Asking for $1500/acre and 1/4 RI might make them think you are not really interested in negotiating while asking for $1500/acre and 3/16 RI or maybe 1/5 RI would probably get you a higher counter offer.
Thanks Soonerpe and Ron!
Let me ask this first: if over the past several years, we were offered options similar to this, BUT WE NEVER RESPONDED, were we "force pooled," and is there money in some account somewhere that we've never received?
In our case as shown above where we were given 2 offers, asking for the higher per acre amount AND the higher royalty would be a reasonable request and would certainly get us a counter offer. Is that correct?
In other words, Soonerpe and Ron, with our two offers, what would each of you do?
We are just clueless as to what is normal when accepting an offer. It appears that we should NEVER accept their first offer? Is that right?
Also, this lease was inherited through a Trust, and the Trust has to be desolved, (not sure desolved is the right word), and transferred to 4 sons. Anyone know how to do this?
Thanks for the replies EVERYONE!
If the owner of record is a trust, then the trustee should have been contacted and received notices. Many wells are proposed but never drilled.
steve prichard said:
Thanks Soonerpe and Ron!
Let me ask this first: if over the past several years, we were offered options similar to this, BUT WE NEVER RESPONDED, were we "force pooled," and is there money in some account somewhere that we've never received?
In our case as shown above where we were given 2 offers, asking for the higher per acre amount AND the higher royalty would be a reasonable request and would certainly get us a counter offer. Is that correct?
In other words, Soonerpe and Ron, with our two offers, what would each of you do?
We are just clueless as to what is normal when accepting an offer. It appears that we should NEVER accept their first offer? Is that right?
Also, this lease was inherited through a Trust, and the Trust has to be desolved, (not sure desolved is the right word), and transferred to 4 sons. Anyone know how to do this?
Thanks for the replies EVERYONE!
If they want to drill and you will not lease then they will force pool you .
Steve,
Here is a link to a site where you may check to see if the state is holding money in escrow.
I got $1000 an acre and 3/16 royalty for four years in 16-17N-9W which is near Loyal from Newfield. They are about to drill a mile from our place I have been told.....
Thanks Tim!
News from Kingfisher County is somebody just leased their minerals for 1/5 at $2500 an acre for three years. Somebody must have been in a bidding war on this one. Goofy theory kicked in....(Competition makes otherwise normal people act goofy)