I received an letter of options from a Landman for Prime along with Freedom Operations Company to lease my inherited mineral rights. Legit? I have never had options. I reading on this forum that getting an attorney, counter offering, and to not sign the option letter but wait for the lease agreement. True for Lincoln County, OK, too? Offer is quite low as my rights are divided heavily among others. Advice appreciated. Mineral Rights, Section 20, Township 14, South half of the SW corner, Lincoln Co, OK
1 Like
You have an incomplete legal description. Section, Township & Range.
Welcome to the forum. The option letter is the first approach. I do not sign the letters-ever. I do not think it is wise to sign something before I have even seen their draft lease. Once I see the lease and review with attorney’s advice, then can counter offer or chose to wait for force pooling if a good lease is not forthcoming. Your location needs a complete section, township and range. Lincoln County will have a N on the Township. Are you in Range 5E or a different range?
That is correct, no reason to sign the letter.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
The description is as follows: South Half (S2) of Section 20, Township 14 North, Range 5 East, Lincoln County, Oklahoma. Proposed drilling of the Mickelson 1-20HP. Since the mailing of the first proposal options of which there were three concerning royalties and amounts per acre a certified letter came from the same land man, John Mayo, of Jurray Land Services, INC with an offer added to participate and share the costs of drilling with an “urgency” to reply. “FOPCO anticipaters filing a forced pooling application with the Oklahoma Corporation Commission in the near future…” so the letter says. Wait for pooling to respond?
If timing is short, then pooling is probably the best option.
Freedom pooled the north half in 2024 for the Prue. $80 1/8th, $75 1/6th, $50 3/16ths.
If it were me, I would pick the 3/16ths. The first well in 20 North half was successful.
You only have 20 calendar days from the date of the pooling order to answer, so stay on top of it.
Thank you for responding! You, Ms Barnes, are very helpful.
If you need an example of a pooling order response letter, come back and I can give you a draft.
1 Like
That would be great. My deceased mom used to handle all this and is now my responsibility. She worked for an oil company and had much more info than me.
0_Force Pool template letter.docx (13.1 KB)
Fill in everything that is red based upon the pooling order. Then turn black. I always send by certified mail, return receipt. Have had to use that receipt to prove that I sent in the response. Keep copies of everything!