I’ve received a Lease Offer from Dry Creek Operating for 15-1N-1W for 3 years, 1/4 royalty & $250 per acre bonus. Has anyone else received offers? Is this a fair offer & are they reputable?
Thank you!
Dry Creek seems to be legitimate. They are probably leasing for another company. They have been flexible regarding lease terms, depth, no deduction etc…
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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Continental is most likely going to be the operator. Most of the leases posted belong to them.
It is always wise to have an oil and gas attorney look at a draft lease. Most of the ones I have received have needed extensive edits to be more in the favor of the mineral owner. An early investment in good legal advice for a contract that could hold your family for decades can increase your royalties substantially.
thanks Martha & Richard for the replies. I’m just now getting back to this. I have probably asked this question before, at least to Martha, but is there any way to check the OCC website for cases based on Legal Description? It seemed like with the old site there was but I can’t figure it out with the new one. I can see where Continental applied for a horizontal well back in 2017 and then dropped the case in 2020 (201701121) but I can’t see how far along they are with any new causes. I did find various leases that have been signed in Garvin Cnty via Okcountyrecords.
It is a little tricky on the new one-you have to scroll down farther than one would think and have a login. What is the STR and I will look it up and then walk you backwards to get it.
Go the Electronic Case Filing. https://oklahoma.gov/occ/court-dockets/electronic-case-filing.html
Use the red box on the left. Create a login. Save your password!
Filters will open. Use “Document” in the Search type then use the gray scroll bar on the right to scroll down. Program area-Oil & Gas Conservation, Docket Type-Conservation Docket (CD) Oil & Gas-open it. You will find Section Township Range
Thanks Martha, as always, a huge help!
I think I’m dense but I followed your instructions entering 15-1N-1W under Oil & Gas Conservation & CD but it says there are no search results. I find it hard to believe that there are no active cases since they are leasing there. What did I do wrong?
Also, separate question for you & Richard – if I’m not hearing back from someone about a lease, can I reach out to other parties? Is that in my best interest? I have no idea if this will go to pooling but wouldn’t I have a shot at getting better terms in a lease vs. pooling?
I did not find any new OCC cases for 15-1N-1W. They usually wait until they get enough percentage of the leasehold before filing cases. Continental is active in the township with multiple permits. They are actively leasing in 15.
You can reach out to other leasing agents. Or you can wait for pooling. Third party leases can be higher bonus offers.
You can reach out to anyone you choose. This section has multiple producing wells and Continental pooled it and filed an intent back in 2018-2019 but it doesn’t look like they drilled anything. Dry Creek is predominately a buyer of minerals, but they do lease. In areas like this with very complicated title, landmen will make offers to lease then find out the interest is HBP or there are title problems and just drop it and move on.
Good Luck.
Then, it sounds like my search was correct. I just expected to see renewed activity at the OCC level if they were gearing up to drill.
My NMA is so tiny that bonuses are not a serious consideration. However, having good terms for the future is. I’m wondering if leasing allows me to have more control and more favourable terms than what passes in front of the OCC in a pooling order. Obviously, I’m asking just in general as I know it would depend on what is in the lease.
Totally depends upon what you can get in a lease. Third party agents are often able to give more favorable terms that those offered by the operator. Pooling has its pros and cons to be weighed against the lease terms.
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