I have two letters for wells 1. Sultan 1-30-19-18XH. 30-6N-1W McClain/Cleveland co & Sahara 1-29-20-17XH in 29-6N-1W MCClain/Cleveland co. I do not have these leased out at the moment & Capstone sent me lease I found to be very low. They also said they are getting ready to do a pooling order. $75.00 for 12.5% $50 for 15% & 0 for 18.75%
They said they don’t expect to get much from these sites. Do they know that in advance? I’ve always leased for at least $350 an acre. So maybe this is something different?? Lost!!
The operators do know what the economics are likely to be before they even contemplate drilling a well. This particular area is on the low end of the scale. Lease bonus amounts are significantly lower in OK this year. Competition and what the market will bear. Just the way it is.
Capstone has already filed the OCC cases for these wells except for the pooling which will come next. If it were me, I would take the 3/16ths royalty even though they are not paying a bonus. The potential royalties often far outweigh the bonus amount. Especially if there are multiple wells in a section. You can either lease with Capstone or go to pooling. Many of us prefer a pooling when the time frame is short and drilling looks imminent. If you want to lease, then suggest that you get a good oil and gas attorney to review the draft lease as it will not usually be in the mineral owner’s favor and needs some edits.
Thanks so much Ms Barnes for the quick response. I believe I agree with you & will wait for the pooling to take place. I appreciate your explaining things where an everyday person can understand! Thanks again!!
These are the same bonus/percentage offered to me in 1805N01E, McClain. They would not offer 1/5 or 1/4. They didn’t argue about my clauses. I have no deductions coming out.
I got a lease proposal for the same.
One paragraph says “grant…unto said lease …for the purpose of drilling and exploring…for laying pipelines building drill sites access roads tanks power lines poles water lines and structures…
This makes me nervous as I own 80 acres of surface here.
Should I ignore it and wait on pooling?
That is standard language for a mineral lease. However, you need to get a good surface lease and that will require an attorney to draw it up. Don’t sign the mineral lease until you get the surface lease drawn up properly. Since you own both, that would be important. You can pool with the minerals and do the surface separately since you really need to protect your agriculture use, etc.
You can always put on the lease that the lease does not grant lessee the rights of ingress or egress without prior written consent of the lessor. However, do to the minimal bonus being offered by Capstone, you would probably be better off just waiting for the pooling, if it happens. I love the comment that “they don’t expect to get much off these sites”. I guess Capstone has lots of money to waste.