I have received two slightly different offers for 25-23N-14W Woods Co. One is an oil and gas lease from JP Drilling of Destin, Florida, with a lease bonus of $750 per net mineral acre. and the other is from Canvas Energy with regard to their horizontal well proposal in which I am given of choice of several elections regarding my interest. The Canvas response is to be returned to Pinson Land Services and contains this paragraph:
"In the event that you elect to participate under this letter, you must also elect in writing to participate pursuant to the terms of the Force Pooling Order to be issued by the Oklahoma Corporation Commission." (I have never had to do this before.)
My question is: why am I getting two different types of offers? and if I sign the lease do I also indicate on election from the Forced Pooling Order or are these two companies in competition?
The companies are in competition with each other.
If a lease is sent to you and you sign it, you don’t have to make an election under the pooling. That is only if you participate in the drilling, by paying drilling costs, etc.
Canvas & JP Drilling are competitors. Canvas will most likely be the operator. You can lease to whom ever you want. If you choose not to lease, your interest will be subject to a Force Pooling Order that is issued by the Oklahoma Corporation Commission. Canvas has filed an Application to Force Pool for this section with the hearing scheduled for March 20, 2024. JP Drilling wants to participate in the well by paying its proportionate share of well costs. Be sure you know what you own and it is advisable that you understand what you are signing before you do so as there are many things in a lease that you need to have in your favor as it is possible that the lease will be enforce for many years, as long as there is production. Depending on the amount of acres you own, you may want to get legal advice. Good Luck.