21-7N-3W I have received filings regarding the above area for Pooling and Drilling and Spacing Units. I am very new. I have a basic understanding of what that means. I have a very small interest. Is there anything I can/should do?
Jkennedy: Welcome to the forum. There will likely be a pooling order issued at some point. Typically, there will be several royalty/bonus options that an owner can elect. The lowest royalty has the highest per acre bonus. However, most savvy mineral owners know that it is almost always better to opt for a higher royalty even though the bonus declines.
The reason the higher royalty is more attractive for most people is because in the long run it can provide a greater return. Also, if a successful well is drilled you will be stuck with the option you chose. Not only will you be bound, but your heirs will be stuck with this as well. Also, it can last many decades and generations.
Be aware that once a pooling order is issued you have 20 days from the date of the order to make an election. If you don’t make a timely election you will be stuck with the lowest (worst) royalty.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship..
Welcome to the forum.
Here is a publication from the Oklahoma Corporation Commission that may be helpful.
0_Royalty-Owners-Booklet-112020.pdf (6.8 MB)
Welcome to the group!!!
Thank you. I have been receiving offers from different landsmen, and my siblings expect me to make a good decision. This site should help me.
Jkennedy, I have an associate that is interested if you are wanting to lease. Just let me know and I can get you contact info. Thanks.
If you have never leased before, I highly recommend that you get a good oil and gas attorney to review any draft lease. They are rarely in the mineral owner’s favor and need significant edits. If you do not wish to lease, them many of us wait for the force pooling and take the highest royalty.
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