Thanks Sandra. Wonderful!
Thank you Mike I appreciate your advice. I always enjoy reading your advice. What is an SL pad? Sounds like a pad for the rig to sit on?
SL is the surface location. The rig and all the equipment sit there. Later, all the frac equipment, then the tanks and well head. It is large in the beginning and small once the completion is done. The larger area is remediated.
Can anyone tell me what's going on in sections 12 & 13 in 5N4W?
Native Exploration lease completed: 3-8N-4W @ $3,750 and a 1/5th
Has anyone had experience with Newfield and how they usually handle check for first payment and division orders? Will these come together or separate?
Joyce, Typically, you get the Division Order about five months after first sales. Then your check comes about six months after first sales.
Thanks MBarnes. Haven't received Division Order even though first sales was October 3rd. Expecting payment on or before April 3rd. I'll give them another call.
Does anyone know what activity may be occurring in Section 17, Tn 8 range 4w?
havent been on here for a while but I have a question for all you wise people. My lease with T.S Dudley is up April 1st 2018. They had a 2 year extension in the lease. I just received a check and lease contract from EOG resources saying they wanted to exercise the extension. I didn't sign a lease with EOG resources. I didnt see anything in the lease with T.S Dudley that allowed them to sub lease it out. before I go to my lawyer is there anyone that has experienced this and is it legal?
Murelene,
TS Dudley is the broker for EOG. Dudley went out and leased all the mineral owners in certain township and ranges for EOG. Having dealt with this, EOG has informed TS Dudley that they would be taking on the responsibility of sending out the checks for the 2 yr option.
Murelene
Read the option language in the lease, and what is required to exercise the option. Does it require your signature on the option documents? If not, best to visit with your attorney.
I am not a big fan of relying on internet legal advice from people who have not seen the documents, and may or may not know what they are talking about.
Thanks. I have no intention of signing the extension for 200.00 an acre from EOG when the average is 4500.00 for that section area.
I didnt sign with EOG and there was no mention of them in that lease so I will get my lawyer to handle it.
I have received offers for 2500.00 for weeks from different oil companies.
Martha Barnes has been so helpful in educating me in these things. I wish I would have checked out this site before signing the first lease. Unless I am bound to this 2 year extension legally I will be able to get better offers soon. I will never sign a 2 year extension again I know that now. Thanks for the responses
Murelene unfortunately you are bound to your 2 yr extension. "lessee at its sole option may extended the primary term of this lease for an additional 2 years... etc" with your signature at the bottom of the lease addendum. book and page 2237/393. You are not alone on the extension, T.S. Dudley put in the extension language on just about every mineral owner throughout McClain county and the mineral owners all agreed and signed on the addendum for the extension.
You might not have signed directly with EOG, but you did sign with T.S. Dudley Land company which is the land company they hired. Most operators outsource the leasing and title search to land companies.
Don't ever sign anything more than a 3 year deal. And be sure you have a good lease to give them! I got one from Martha Barnes. A lot of these people will lead you to believe they need more time to drill a well etc... 99% of the time its all BS and they just want to flip your lease for a huge profit. I am so excited a bunch of my leases are expiring, so I can make them right this next go around.
So i read this extension thing and it says indian 1870. I have been trying to prove my Chickasaw indian heritage for a few years now. I have never seen this on any other paperwork.
Andrew the letter states the lessee is T.S Dudley then below that is EOG lease #0271098-12 but that is
I leased to T.S Dudley land Company on 4/15/2015.
This extension is for a lease to EOG resources. My original lease does not say anything about EOG resources. It looks like T.S Dudley subleased the lease which also there is nothing in the original lease about them subleasing it. I have an appointment with my lawyer on Monday who has been involved with the original lease. We will see what happens from there.
S4-T6N-R2W
Does anyone know who is leasing for S4-T6N-R2W? I see activity on county records and received a change of operator filed by Conner and Winters. I talked to a Diana Wilson (no relation) in June 2017 but have heard nothing. Anyone have any guidance on this?
Murelene, the third paragraph from the bottom of page one of your 2015 lease gives Dudley the right to assign the lease to anyone he wants, and the addendum on page 3 gives whoever holds the lease at the end of the primary term, apparently EOG, the right to extend for an additional two years for the same bonus paid to you in 2015.
By all means, see your attorney, but unless he can find fault with something else in the lease (I didn't read ALL the fine print), it appears to me that EOG has every right to extend you for an additional two years at the old price. I am not a lawyer, but I did oil and gas title work for a major oil company for thirty years and that's my opinion for what it is worth.
Marelene,
I'll be frank,
You indicated your attorney was involved in that original lease. If that is correct and he recommending you entering into that agreement, I have serious doubts about his experience in Oklahoma oil and gas law. I'm not an attorney but I would have advised you to walk away from that lease as written.
Andrew is giving you good information. Unfortunately by agreeing to the 2 year option, you just learned a VERY tough ~$100K lesson.
I see many more problems in this lease other than the option. And I see indicators that you might not have marketable title on this property. When an oil well is drilled and it comes time to pay on the production, I predict your payments will be suspended until you cure the title issues.
For what it is worth, T.S. Dudley has never drilled an oil well and they have been in business at least 20 years.
They assigned your lease to EOG on 30 Sep 2016 along with 300 or so others. EOG hired them to gather those leases in their name for subsequent assignment to EOG. This is the most common method for operators to lease.