Looking for some guidance on acceptable lease offers. I have 40 net mineral acres in Grady County, Oklahoma. Continental has a pooling order, but I have also received a few lease offers, as well as offers to buy. I don’t wish to sell, so I am considering the lease option. I have read that some lease offers are really low compared to leases in the surrounding areas, and they just expect you to accept the offer. I thought it was interesting that the pooling order says “The land witness for Applicant testified that he did not believe the Section 4 transactions were representative of fair market value in Section 28”, but I don’t know what those numbers are.
Here are the offers listed in the pooling order: $1150/Nma with 1/8 royalty, $1050/nma with 3/16 royalty, and $1000/nma with 1/5 royalty. I also received a generic lease offer of $1250/nma with 1/5 royalty.
I’ll take a stab at this and guess that your interest is not open for lease as your interest is HBP by the NE Verden Marchand unit that is still in operation. You are probably getting checks from Sheridan Production Company for the MCVEY"A"1 well. You might want to make a quick call to Continental to see what they show for your interest to determine if you have an interest that can be leased. As for the comments of the land witness, he only has to testify to information he can acquire for the 8 surrounding sections and the section being pooled. In this case, there haven’t been in leases in this section for at least 50 years. Be aware that IF you own acreage that can be leased, you only have 20 days from the date of the Pooling Order to be able to make an election or lease to some one else. But I could be mistaken. Good Luck.
Thank you for the response. You provided some very helpful info! I did not know those were connected, and my “final order and decree” says NE Verden Unit 11 Track 78, and then lists 40 acres in section 28-t8n-r8w, and 30 acres in 26-t7n-r8w. Also separately lists shafer “d” #1. I have not heard from Sheridan production company. I will attempt to contact them.
Why would I be getting lease offers for something HBP?