This weekend I received Application & Notice of Hearing notices (Pooling CD 201905255-T) & (Spacing CD 201905253-T) Kay NW/4 SW/4 OF SEC 33 28N 5E Mackey Consulting. Has anyone negotiated a lease yet? I’ve been contacted by Bivins but haven’t accepted the offer yet and would like to know if other offers are out there.
KAY 33 28N 5E Received Pooling order with terms to select and I have about 5 days left to make my selection and I’ve gotten 3 lease offers in the last two days. Is anyone on this forum in this pooling and willing to share thoughts? One offer from Mineralmen is “60% current bonus offer with a 3-year term, providing 22% royalty”. Just got it today and haven’t checked them out yet.
Here are the items that I would consider:
Very short time frame. Need to send notice by certified mail return receipt to both the operator and the OCC. I like to send 4-5 days ahead of the deadline. They will probably take the “sent by” date, but who knows…so today is really my deadline and I keep copies of everything I send.
Can any of the lease operators get a lease to you-with a fully paid check deposited and cleared and they get it filed by the due date? Will they file by the due date or will you get caught in the short time and end up with a lower royalty by the force pooling because they never filed?
The pooling is likely for 180 days or 365 days. Essentially a very short lease. Why would I want a three year lease at this point? Poolings can have their advantages.
Do I have enough knowledge to negotiate a lease that needs revisions in essentially a day’s time? Will another group actually make revisions? Do I have a lease and Exhibit A in my favor ready to go? (depth clause, no post production charges, Pugh clause, limit shut in time, no warranty and a few others, etc.) Do I live close enough that a lease agent can make it to my house today and the money goes in the bank today by check or cashiers check? (probably not)
Are the other lease offers substantially better or just a few dollars? The lease clauses are so much more important than a few dollars.
At this point, if it were me, I would sign the pooling order at the highest royalty and lowest bonus and call it done. Just my opinion. Others may differ.
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Not necessary to have anything done by due date other than an arm’s length transaction. Nothing has to filed at the court house by any due date. The only requirement is that someone must make an election by the 20th day after the order is signed, excluding weekends & holidays.
Thanks for the input. I read all the offers and of course none would be in my favor and 22% offer was way too vague to bother with at this time. I have already sent my lease and exhibit A to Mackey last Oct and it was rejected. Pooling is still first choice in this case.
You have 20 calendar days form 1/21/2020 to make that election.