Does anyone have any information on when EOG plans to drill/spud their 10,000’ lateral in Section 3 T7N, R4W, Charles 0334 #1H?
Cindy, it is a good business practice to decide whether you should spend money on an attorney. If the family will pool their resources to get legal advice, it might be affordable (yeah yeah I know all the problems with that approach like the cousin who wants the advice but not the bill).
If you prefer a self-help remedy, looking at the special provisions of other leases filed in the McClain County land records can give you some ideas. Look at the leases in your section, and the surrounding sections first. This will give you an idea of what lessees in your area are willing to accept.
It has been a while since I have followed this discussion group. I have received a lease offer on S14;T7N;R3W. Is there any activity in Section 14?
Thank you.
Ms.Barnes… you state that Sections 19,30,31&32 have activity at the OCC…what does that mean? I have an interest in Sec.30 8N 4W and have asked many questions (sorry),in the past. I know that this is within the Blanchard city limits , though this Section of land is or was in an area outside the general City and somewhat rural…or was rural the last time I was in the area about 10 years ago. Again sorry that I ask so many questions, but you have a great knowledge of the areas concerning mineral rights. Thanks, Rick Buscemi
Rick, The OCC is the Oklahoma Corporation Commission. All wells have to be approved through them. Spacing, poolings, horizontal wells, etc. They have to clear everything before any operator can drill a well. 29 has pending hearings. 33 has some pending hearings. 30 & 31 do not at the moment. Those sections still look pretty rural on the satellite images.
Teddie was asking about 7N-4W which had the 19, 30, 31 & 32 with activity. You are six miles north of her in 8N-4W.
You can go online at the OCC and look up lots of info for free. Let me know if you need to know how.
That’s what I thought. TY M Barnes
Anyone leasing with Newfield for the Carole well?
Section 21/Township 7N/Range 4W
What is status “PA” on the OCC Permit Reports? I have some in Section 32 6N 3W in the NW4
Teddie, Looks like Native Exporation, Todco Properties, Maoli Energy and L3 Energy are all leasing in 14-7N-3W. sections 19, 30, 31, and 32 have activity at the OCC.
Marilyn, The Carole 1H21X was drilled in 2015 with a surface location in 28. No one can lease because the leases in 28 and 21 are all held by production by the Carole well. Did you have another question about the well?
Stephen, PA usually means plugged and abandoned.
Ralph, EOG still has causes left to be heard at the commission, so won’t be for a while. They have to get through all of them first. If there is a pooling, (which has not been applied for yet), the pooling will list the time frame.
Thanks Ms.Barnes for the info. I’ll look up the OCC later and see if I can figure it out as to looking up info,etc.
Teddie,
I never do an extension of two years. The bonus for an extension would be contained in the lease language, but it may be lower or higher than the market value three years later (usually lower). I won’t tie up my acreage that long.
You won’t find lease amounts on the OCC. They are not public. Folks on the forum may share what they know.
You can find pooling information on those bonus/royalty pairs on the OCC, but kind of hard to find the case to look for. EOG pooled sec 5 for $2750 3/16, $2500 1/5 and $250 1/4 in February, 2018. Your offers are equal to those.
For state of Oklahoma leases, the extension bonus is set at half the original bonus. If the state got $3000 for a 3-yr primary term, then they will get $1500 for a 2-yr extension. Most of the time, it is better to not give an extension which is just a free option to the lessee.
M Barnes - Thank you again - as usual - very good information. I had never thought about the extension bonus the way you explained it - and it makes perfect sense! Thank you again… Teddie
A while back 3-4 years they were offering 1.5 times the original amount although I think you should still just go for the 3 year. My opinion.
Thank you for responding M. Barnes. In the past you have told me that the first offer is generally a low-ball offer. The company offering the lease for Section 14, T7N, R3W is Fillmore Energy Resources. They offered $2,750 per acre for a primary term of 3 years, 3/16 royalty, with 2 year option to extend or $2,500 per acre for a primary term of 3 years with a 1/5 royalty, with 2 year option to extend. Do you know if this is a reasonable offer? I tried looking on the OCC website and couldn’t find info about leasing offers. It is probably there and I just didn’t know where to look… In negotiations, do companies often agree to drop the 2-year extension option. I don’t like tying up leases for 5 years… And will companies often give an extension bonus? Thank you…
When leasing land for the mineral interest is it prudent to include clauses to include surface rights in the lease. I was advised by a landman that surface rights are negotiated separately but from what I have been able to discern from Naro and this forum the surface should be negotiated on the mineral lease. Could anyone with knowledge or in the same position provide information regarding this issue? The land is situated in Mcclain County, some zoned commercial and some agricultural. The value of the land is much more than 20K/acre with a minimal investment in infrastructure and I need to protect it from a 5 acre drilling site which would cost me basically 60K+ per acre for future building sites. There is less valuable land across the rd that backs up to the turnpike that could be used as an alternative at a much better value because it is an angular lot and also backs up directly to the turnpike as stated above. My personal thought is it must be in the lease but it would not be the first time I was wrong. Any help from the many knowledgeable folks out there is appreciated.
I got an offer to lease yesterday for 2700.00 an acre plus 1/5 royalties.
from a Cycle oil leasing. Too bad I cant accept it. I am under contract till April 2018. This is the best offer so far though. Must be getting close