I'm new to all of this, and could use some advice. Like Terri Scott, I live in Washington, but have inherited mineral rights in Payne Co: SE, SE, S17-T18N-R5E, 40 acres. We've been offered a lease - $200/acre, 3/16. Does anyone know anything about activity here, or whether this is a decent offer?
I also need some help with lease language -- I know this is written completely in the lessee's favor, and I'd like to have someone who knows what they're doing negotiate it for me or at least advise. They've said for months now that they "are going to pooling soon," but they just got a lease to me today.
Any suggestions? Any and all help will be so appreciated.
Dawn Haslanger
Right now the only drilling listed is in 18N-05E sec 31. Some previous drilling was in sec 29. $200 per acre for 3/16 to lease is fairly normal. Who is the company?
They have filed for no pooling as of yet and there is no reason to fear a pooling order. The terms of the lease agreement could be more important then the money paid for the lease. Take your time. Here is a map that might help and I will get you some more information tomorrow .
http://www.ok.nrcs.usda.gov/technical/GIS/CountyBaseMaps/CountyBase.html
Thanks Ron. Nice map; I hadn't found that one. My parents retained the mineral rights when they sold the surface. I know the address, and have looked at it on Google maps - I played there as a kid, and it was cool to figure out the section, range, and township. I appreciate the information about pooling. They have gradually sweetened the pot over the last five months.
Barry, the land co. is Centennial, and they are leasing for Citizen Energy OK. I haven't come across that name in any discussions here.
I asked the landman about the company, and she was very forthcoming. Here is an excerpt from her reply:
They are a privately held Exploration and Production Company that will be developing multiple horizontal wells and plan to acquire over 20,000 acres in their area of interest in Payne County, OK. It is safe to say that they would not spend the 4 -6 million dollars to drill for oil in that area if they did not expect a return on their investment for everyone, including the mineral owner. Their website is: you can figure it out from the name of the company.
Here is another source for maps and simple, easy to understand explanations of the section, township, range way of seeing a map. http://www.okgenweb.org/okprojects/xref/help/str-regions.htm#Northeast%20Oklahoma
I hope I haven't broken any rules here - like I said, I'm a newbie. Thank you both very much.
Dawn
Ron McKenzie said:
They have filed for no pooling as of yet and there is no reason to fear a pooling order. The terms of the lease agreement could be more important then the money paid for the lease. Take your time. Here is a map that might help and I will get you some more information tomorrow .
http://www.ok.nrcs.usda.gov/technical/GIS/CountyBaseMaps/CountyBase...
I took the first offer, which most people suggest we do not do. But in my opinion, unlesws you own a few hundred acres, then but "BONUS" means little. (Mine is $00.00 1/8) and actually, I told them I would accepta zero bonus for more royalty, but they did not go for that. I don't know why. Knowing little about oil, I find it more important to myself to concentrate on writing poetry and songs, whicdh I have done night and day for 15 + years, and which I consider much more important than all of the oil in Oklahoma.
Payne, I think, is the most important county in Oklahoma because of the new Cushing Extension to the Keystone Pipeline. Obama approved the Cushing extension, ordered the red tape and beuracy be cut, and get it built right now. (From Cushing to Port Arthur TX, NOT from Cushing to Canada yet.) It is almost finished and will be shipping oil before the end of this year.
I believe all of Oklahoma, especially North Central Oklahoma, is vital to the USA becoming the largest producer in the WORLD, as Goldman Sacs still insits will happen BEFORE 2013, and that is only 11 Months away. New oil discoveries are being located literally every day in Oklahoma, and I believe it is just the tip of the iceburg. But for me, and right now, I am more concerned with finding a good word that rhymes with iceberg. And working out my aging body and vocal chords. LOL But I feel very good about the oil situation in Oklahoma, as well.
A year ago 5 of us inherited mineral rights on 80 acres sec 9 T20N R2E. We leased for $150 an
acre and 3/16 Royality. I don't know what the activity is in your area but Payne county is busy
in general. Your offer seem in line, although I've seen posts of up to $250 an acre usually with a
lower royality. Guess it depends on whether you want money now or rather bet on a royality later.
My suggestion is find an attorney familar with leases and have them review the contract. Mine obtained
changes and the company added clauses about Depth, Pugh Clause, deductions and shut in royalty to name a few.
Devon Energy who is a Big Co. has signed some kind of development agreement with some others, and 18n-5e looks like it is part of it was recorded in the county records and one was 120 pages long . Don't get in a hurry they can't do any thing with out you. Also you will need everything Phillip mentioned in his last sentence above in your lease. I'll look some more and see what I can find.
But I thought, was I wrong??? that they could do pretty much of anything without us or with us, that there were provisions they could use for lost heirs, holdouts and even going onto land owners (Not mineral owners) with or without their permission and against their wishes, connected mostly to eminent domain? Researching this is pretty much a full time job, and then putting it all together so it makes some sense is something of a nightmare, and lawyers are unaffordable and not always right, that is why I just went ahead and signed the first offer, cause I have more immportant things to do than work on something that I have lived without for 56 years anyway.
I think 3/16 is pretty usual. That is what I got from Calyx a few miles east of here. I signed the lease 2 years before they pooled and drilled. However, after the pooling order was approved and they were ready to drill, a relative of mine got an offer of 1/4 with no signing bonus. You might ask for 1/4 and see what happens. The signing bonus, in my opinion is not as important as the share - if they find oil.
I did fine some 1/4 in your township . Devon just made a big deal there with some other Co.s who had acreage that was held by production . One was over 100 pages with about 30 leases per page. There were some wells in 18n-4e in 4/12 to 7/12 that had some good test. Then in 8/12 Centennial started some heavy leasing. Devon signed their deals starting about 8/12. This is just getting started I would be in no hurry to sign and you can take more then one option. More later getting late here.
Y'all are so helpful! I've been peeking in here since mid-December, and have learned a lot just from reading your discussions and following the links you've been sharing. Also Buddy's advice. You've taught me that there is a lot going on -- new tech advances creating greater resources here, with who knows how much to come in the future. Also that it's best to take the time to do it right. The Mineral Rights Forum is an amazing entity with a lot of smart, generous people feeding into it.
My sister and I are more interested in a higher royalty than a big bonus. When they first contacted my Mom in 8/12, they offered $175/acre, 1/8. The lease I just got is calculated at $200/acre, 3/16. Neither my sister nor I will take the check to the bank, and I'm not worried that they will withdraw the offer in 10 days if I don't sign it by then. I want to remove some of the B.S. language, and add clauses in our favor, taking Phillip's and Ron's advice. I just need to find someone to help with that. I don't think it will be hard to do, but I don't have the expertise. The lawyer who is probating my Mom's estate in OK wants too big of a slice of the pie for me to hire him to do this.
Ron, is it your thinking that there are various smaller companies trying to gather up as much acreage as possible as part of a deal with Devon? The plot thickens . . .
I know 40 acres isn't much, but I feel a responsibility to make the most of it. My Dad was a Sunday school teacher for nearly 60 years, and so was my Grandpa. The parable of the good steward was one I had explained to me more than once. I know my folks were proud that they could leave us something of value, and I honor that. I will not be in a hurry, and will be open to options.
What a bizarre football game!
Here is what a pooling order looks like.
Can anyone point me in the direction of a good probate attorney in Oklahoma? My email: [email protected]