Hello I am looking for some advice on negotiating with Steward Energy for our lease price per NMA as well as tips on pooling and what we should do to protect our interest.
We are E/2 of Section 16 & 29 in lea county NM Permian Basin.
Our lease is up for extension it was drafted in 2019 for both but this year they only want section 16.
Lease is for 1k per NMA with 1/4 royalty and pooling verbiage… I myself am not familiar with I will be reviewing the lease itself but this was previously handled by my grandfather.
They have indicated they intend to pool us with the Shraeder wells with which we spilt 50/50 royalty.
We would like to ask for more per NMA for this lease term as well are not sure the company will be able to continue they say their current well permit is on hold due to the political climate. What isn’t .
But I seriously could use some advice as this is family affair and I am new to this and will be also negotiating for our family with my family and against my family…
New Mexico has forced pooling. So you can consent to pooling as approved by NMOCD. I have not been hearing others complain about the political climate recently, so that may be more of a negotiating tactic. You need to add the Twn and Range for the location of your minerals. Then someone familiar with the specific area can comment.
Political climate does not delay a permit. Permits have statutory and administrative requirements. They operator may elect to delay permitting until there is a clearer picture on oil and gas product prices.
In 2019 we leased to Steward for 800 pnma. 3 year lease, no extension, on an agreeable lease form and exhibit. At the time, we had a landman we employed to negotiate the lease for us. Eventually, we negotiated for a flat fee of $25,000 for 28.31 nma. This was for section 23 T13S, R38E Lea county, NM.
I’d say 1K pnma is a good deal but if its their first offer they will probably negotiate a higher bonus depending on your NMA owned. I would also advise an attorney. Especially if its a lot of acreage. Several advertise here under the DIRECTORIES tab. Best of luck.
P.S. So far Steward has drilled and completed 4 wells. A Application for another well was recently approved as well. Great Company to do business with.
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