My uncle passed away in 2010. I was recently contacted to see about signing a contract for some drilling. As far as I know the mineral rights were not in his will. My brother was told there was 9 of us nieces and nephews that would be sent letters. Some of them I know the others I don't. I have several questions. Thank you Lisa for your blog tonight I was able to learn a few things.
There were two contracts sent to us which apparently equals approx. 80 acres in Logan County. Sections 10 & 23-15n-1w. My contract came from Gary A Monroe & Associates out of Arkansas of behalf of Tetra Energy. Has anyone dealt with this group before?
Is there a way to find out if he may have had other sections that we don't know about? Also for them to drill on this property would all 9 of us have to sign a contract. On the one website I went to, it looks like 2 of the nephews have turned in their contracts.
Since I am new too this. Before signing any contracts. I want to know what my options are. I want to make sure I get the most out of it and what does it really mean in the end for us.
Is this an oil/gas lease or an offer to purchase the mineral rights?
this was for an oil/gas lease.
ASk for a better offer, regardless of what their offer was.
Ask for a depth clause, favored nations clause, and a "gross proceeds" lease. Double check lease to make sure its a gross proceeds lease.
I did give the leasing company a call to find out more information. Of how the division was and how much. Apparently the two nephews that signed their contracts actually sold their interests. I saw that I could pay 10 dollars to look at their contract, but he said that he could look at it and send me a copy.
I will look at the lease again and see if the if the three things you mentioned are on the lease.
I am thinking I would rather keep the rights and lease, but I will let my brothers make their own decisions on what they want to do.
I would not sell until I knew what i was selling.
What was your Uncle'sname?
Contact me by email or private message if you would rather not post that information in a public forum./
What I have found out today is that there was around 125 acres of minerals rights that was divided into 1/3 between my uncle and my his siblings. His one brother is the one that sold his 1/3 not my uncles nephew. So it looks like the 9 of us of are sharing 1/3 of the 125 acres. Which is approximately 4.62 acres a piece. So do I sell or still lease?
LEASE.
Are the minerals they are trying to buy/lease under production? You need to ask that question.
Donna Theis said:
What I have found out today is that there was around 125 acres of minerals rights that was divided into 1/3 between my uncle and my his siblings. His one brother is the one that sold his 1/3 not my uncles nephew. So it looks like the 9 of us of are sharing 1/3 of the 125 acres. Which is approximately 4.62 acres a piece. So do I sell or still lease?
Searching the legals you gave it looks like your nephews sold their minerals last month to a company called midconex minerals. From a quick look it looked like William from Parsons KS recieved more money in the transaction than Jimmy from Joplin. Could have had varying interests.
They are wanting to lease them. I sent you an email.
Mineral Steve, where did you find this info?
That was my uncles nephew's father that sold his portion not his portion. I called and talked to him just a little bit ago
Bill Jr is still trying to decide what he wants to do with his portion along with me and my brothers. I also saw that information and thought it was him.
thanks everyone for their discussions and replies. I have learned a lot in the last 14 hours.
Donna, may I ask what terms Tetra offered initially? We also have interests in Sec 23.
100 dollar bonus per acre, 3 year with renewal 3/16 share
To quote some other comment on this forum:
"I was offered $250 lease bonus with a 3 year term and 3/16th royalty. I have minerials also in Section 32 TWP 15 N ant Range 1 East. My offer is from from Jackfork Land on behalf of Sundance Energy, Inc. Who was your for? This came in via email September 26th."
http://www.mineralrightsforum.com/group/logan-county-ok-oil-gas/forum/topics/350-nma-lease-offer
Obviously it's hard to compare different sections, let alone different Range's.
Anywho, best of luck!
Thank you for letting me know William. Mine was Gary A Monroe & Associates out of Arkansas of behalf of Tetra Energy. I may contact Jackford Land to see if they are also doing section 23 and maybe to get them to compete with Tetra.
Donna,
I hope you got it all worked out by now. You stated that you may have about 4.6 acres and you would like to keep it. One thing you need to look at when making up your mind. Do you live in the same state and county? If not, you will have to probate your mineral interest in the state and Co unless you have it in a trust. This doesn't apply to all states, but does in Oklahoma.
If most of the people who own the minerals do lease and you don't, then OCC will decide what you get for your lease and the percentage.
It's real important to have a good lease, most leases that oil companies give you are wrote only for their interest, not yours. I always advise everyone to have a good attorney that deals with oil & gas laws to look at it. It pays in the long run. But, since you have such a small portion, it may not pay. Depending on where the minerals are, some are going for as much as $2,000 per A and unless you get a great well it will take years to get that much money.
Just be careful what you sign.
A favored nation clause is very hard to prove unless you have great neighbors who are willing to share all their information. A depth clause is great. Usually in the second paragraph of the lease, it will say you are going to pay for transportation, etc. Mark this out and initial it as that can mean a lot of money in your pocket and not the oil company.
Wish you the best.