I own an interest in our family’s 310 mineral acres in Weld County, Colorado and the estate is in probate. The lease goes back about 40 years and we have producing oil and gas wells. Kerr McGee/ Anadarko did some seismic testing and they want to drill three more wells. They project that production will increase times seven. Without my knowledge or consent the estate’s personal representative negotiated with them and they offered to pay $10,000 per well. I don’t know if that figure is in keeping with what others are getting but it would have seemed to me to be the perfect time to renegotiate royalty percentages as we are getting 1/8 and I understand that that is low for these days. I’m about to hire an oil and gas attorney to see what can be done about this made with them but I would very much appreciate any input or direction from this forum.
One thing I forgot to add that might be helpful (if others in the area have had offers for drilling additional wells) is location. It's 2N-66W-21. Another thing that maybe I should be doing is talking to a landman. Any thoughts on that?
My guess is your lands/minerals are Held by Production by the lease through existing producing wells.
You can’t “renegotiate HBP” because you think it’s too low, the royalty the current wells pay is what new wells are bound to, but the $10,000 each well is good stewardship from the operator. If the personal representative had permission from the court to take best interests of estate he/she negotiating the $10,000 per well is super. The operator has spent a lot of money to hold that lease and drilling new wells at existing 40 year rates is an entitlement they deserve.