Section 35-8N-8W
This is new to me. I inherited this from my Grandmother. Just got a proposal to lease yesterday and hoping i can get some advice and some general knowledge about all of this.
Whats the going rate to lease? Pros & Cons? Do people sale? Pros and Cons.
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You are getting offers to lease or buy because there are multiple permits for horizontal wells on either side.
First of all, make sure that your title information is on file with the Grady county courthouse.
Most first offers to lease or buy are not their final offers. Do not jump into anything too quickly. If they are asking for 3/1ths, then ask for what they are offering for 1/5th or 1/4. The bonus may be lower, but the royalties of the higher royalty amounts may far outweigh the bonus over time.
If this is your first time to lease, then highly suggest that you get an attorney to review the draft lease. It rarely is in the mineral owner’s favor and will need multiple edits. You also can wait for Forced Pooling which has its own advantages.
Read the mineral help tab above and start to learn the lingo of the oil and gas business.
My elderly father got such a proposal in 2015 from a company called Agave Natural Resources. They did not tell him that there was already production and what they called a “lease” actually was giving them 75% of my father’s mineral rights. Get trusted professional help to avoid a big mistake!
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