Absolutely new to this. My siblings and I inherited mineral rights to land in Stephens County. SW/4 of Section 8 2N 5W, we have not really thought anything of this because the last time our folks leased it was so many years ago, we assumed it was not worth much. We each recently received offers from Red Oak Energy Partner, LLC. What are the going "rates and terms" on leases in this area? Any assistance or direction would be appreciated. We don't want to make any poor decisions so we are trying to get as much information as possible.
Does that mean that they may be pooling soon because they are already filing the paper work to start drilling or do they file the paper work way before they ever really intend to drill? Where do you find the information on who is filing to drill? Thanks for replying
Marathon recieved final approval for pooling on sec 22-2N/5W today, a copy of the order will probably not be up for a couple of days. Once it is posted on the OCC website we will be able to see the lease rates they have been ordered to pay. This will give you an idea of lease values in that township. The applications for several orders are filed several months prior to any drilling permits get issued. Like Ron said you don't need to be in any hurry because it is a slow process. If you'll look in the Stephens County discussions I recently posted a list of website including a couple for the OCC.
Cool, I think. We are in Section 8 not sure how close that means we are too section 22 but anyway it's great learning about all this stuff. I will pass this info on to my sister and brother, we have nothing but time, after all these guys looked us up we were clueless.
We have some rights in between you and the section that is now pooling (section 22). We are in 16. I'm surprised I have not had an offer yet. I want to see the pooling order on 22 before I would consider leasing. However the number of acres you own could play into the decision.
The "take your time" advice you got twice above is good advice. Only it should be in BOLD CAPS. Don't fear pooling! ;)
Thank you Rick, I'm learning that pooling is not a bad thing. I'm very interested in seeing the pooling order on 22 also. Hey would you by any chance be related to any Alexanders? My dad was Clyde Alexander he grew up on the land we have the mineral rights to.
Rick Howell said:
Christa,
We have some rights in between you and the section that is now pooling (section 22). We are in 16. I'm surprised I have not had an offer yet. I want to see the pooling order on 22 before I would consider leasing. However the number of acres you own could play into the decision.
The "take your time" advice you got twice above is good advice. Only it should be in BOLD CAPS. Don't fear pooling! ;)
My dad's family was from Duncan, Bray, and Marlow. I made the road trip to Duncan from here in South
louisiana many times growing up. Many fond memories. Thanks for the update on the pooling order. Not much different than the offer we got. Ours was $700 - 3/16 3years with 2 year option or $500 - 1/5 3years with 2 year option if I remember correctly, I don't have it here at hand and I forget things whenever I breath too deep LOL
Rick Howell said:
Christa, Not that I know of, most of my family were from Marlow, Duncan, Velma, and Comanche.
That could go up or down depending on the well in 22. Personally it would be very difficult to get me to sign a lease with an option. The 3 year lease proposed is a 5 year lease and they can cancel at the 3 year point. You cannot. If the value stays or goes way up, they will exercise the option. If the value drops, they drop the lease and negotiate a new one for less money. You have nothing to gain and all to lose.
Marathon has most of the leases. I’m not sure what part Red Oak is playing. They do not appear to be an Operator and I “think” someone else represented Marathon previously. I know someone else did in some of the north Stephens and Grady Co areas.
Ron would it be realistic/practical to request a 12 month lease or at least something shorter than 3 years? Also if we got an offer from Just Red Oak would it benefit us to contact Marathon before we sign with Red Oak because Marathon is doing most of the drilling in that area? Or do you have to wait for them to contact you?