I have not seen the offer yet as my siblings and I share our (Todd) Grandfather's portion and our addresses in the deed are all four wrong. Thankfully my dad's cousin who has plenty of other land that is already active called him this week. My brother is an Attny in OKC and will go work out those details. So, first, wondering if 1200 is a good offer, but I don't know what "fraction" it says. I think the fraction is determined by the oil company, not the deed?
My main question is regarding some of the terms. It says we have to pay for transportation of the oil. Is that common, or usually negotiable? Second, it says if water isn't available they can keep the lease till it is? That doesn't sound right to us. I'm not sure the company yet, I've heard it may be Continental.
I've been reading this forum for over a year since I heard that there is activity in Grady county. But, my first post was yesterday. I've learned a lot from you...now hopefully it will actually be meaningful to us!
Holly
This is the map for the section. http://www.okgenweb.org/okprojects/grady/grady-3n-6w.gif
Ron McKenzie replied to my question in another thread regarding the happenings so far in this area:
Marathon has filed paper word for wells in 2 & 11-3n-6w . In the pooling order for section 2 they were ordered to offer $1,400 for 1/8th , 1300 for 3/16th or no cash and 1/4th .
Just keeping it all together so people can follow since I had asked on someone's thread about Rush Springs an adjacent area.
Holly
Holly-Do you have a lease?
What is the $1200 for, lease or mineral buyout?
Under standard terms in a lease hauling the oil is not the responsibility of the mineral owner
Again, under standard terms of a lease, water availibility in not a standard part of a lease.
If you have already taken the bonus and signed a lease with these terms in it that is
set.
Don,
It is a lease. And, I have not signed/seen it yet because my address is wrong on the deed. Just hearing second hand from Dad's cousins who have seen it. $1200 per acre to lease. Don't know if it is 3/16th or other.
Holly
It is likely 3/16. Do not allow the oil hauling and water clause to be in the lease. Worst case-you may have to get a lawyer to help you.
Only if you have what is called a working interest in the well, which means that if you had one mineral acre or 1/640 working interest that you were paying for you would owe 0.00156 of the cost of the well. In that case, you would owe for the oil hauling, the water shortage would be just that until they could frac the well.
Revision…it is not 1200…someone along the line multiplied it by 3! It is only $350 an acre at 3/16. We got a copy of the letter this evening. Just thought I’d set the record straight. The letter is from Summit Land Company on behalf of Continental Resources. It seems to me that they are just buying future potential at that rate. If anyone gets more please advise. I’d rather sit tight and get the records updated so we are easier to find.