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Old 01-16-2011, 03:06 PM
 
1 posts, read 10,657 times
Reputation: 10

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I am a novice mineral rights owner/bargainer.

My family collectively owns mineral rights to the following tract: Durant Woodford 21-3, S-2 NW 4 of Section 21, Township 4 South Range 4 East, Johnston County, Oklahoma. (not sure how big this is, I own 3 acres)

My question is this; We have recently been contacted again by RD Williams -- an oil and gas leasing company -- about leasing our mineral rights for $400/acre for 3 years. I am awaiting paperwork to see what the other contingencies are.

This is the same rate they offered 6 years ago, which we accepted without question. I cannot recall the details of ownership if a 'strike' is made etc.

I am aware that natural gas exploration is booming in this area. I am trying to get a range of options on this offer. 1) Is it a fair offer and what is the room to negotiate/bargain as I am one of several shareholders of the total mineral rights. 2) Would I gain anything from "shopping this lease offer" around to other companies in the area and how do I find that information.

I guess the worst case scenario is I could live with their offer but am uncertain I am maximizing my leverage here ie. They've approached us, therefore there must be some value to this lease and also, their offer (lease term/rate) has not improved in six years (meaning they should at least compensate for inflation/cost of living/market value which they are not).

I will post more as I receive it, otherwise I am not inclined to sign over my parcel and concede to their offer just yet.

Thanks for any and all input. I am a writer in Austin Texas and admit I am in virgin territory here.

murlin.evans@gmail.com
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Old 01-16-2011, 05:23 PM
 
Location: Norman, OK.
118 posts, read 278,308 times
Reputation: 79
First off, did they drill or escavate the land to your knowledge, (the first time), the lease may have a flaw of a time limit, if first time they did nothing.
I had a tract of land in Norman, Okla. they did this with, along with Oklahoma University and other land owners, the first time they did nothing, came back a few years later paid me again, (paid me the first time also), this time they drilled and capped the site, I have no idea if anything was found. I'm sure if there was any oil found, as I said it was, capped. I think they are doing this for future reserves, but I am really guessing here.
I was told, I would recieve conpensation if anything was, (used), it was most likely capped for future use, as I said so they dont have to release that information till product is used.
Contact a good Lawyer if your concern, I would get some type of industrial Lawyer who knows bussiness law, about mineral rights. If you don't agree with the other land owners they will just take it to court and get the right to drill. That is what they did to the other people in my area that (as I called it) buck up agianst them. And yes they won in the court as they drilled the secound time around. Find out if there are others that got this letter also, they would have to live in the same area, and they have to have everyones OK on this.
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Old 01-17-2011, 11:23 AM
 
Location: Norman
81 posts, read 241,333 times
Reputation: 82
Hello I was wondering about your land so I checked the Oklahoma Corporation Commission well data for that section. in Section 21 4S 4W there was a well drilled in the NE 1/4 of that section. It was called the Glenn 16-1H. Which means it was a horizontally drilled well. It had 640 acres spacing on it which means any mineral owner within that whole section should share in the production from that well. Its final production test was in May 2009. It tested 292 barrels of oil per day and 1463000 cu ft of gas per day. Pretty good well as they started selling gas on 09/06/2009. Atlas pipeline is the gas buyer. Oil company operating the well is
BNK Petroleum (US), Inc
760 Paseo Camarillo Ste 350
Camarillo, CA 93010
I don't understand why someone would try to lease it now. Make sure they are not trying to buy those rights from you. 3 acres out of 640 is a small portion but it should be worth a little.
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Old 01-17-2011, 05:53 PM
 
Location: Norman
81 posts, read 241,333 times
Reputation: 82
Quote:
Originally Posted by Franklin847 View Post
First off, did they drill or escavate the land to your knowledge, (the first time), the lease may have a flaw of a time limit, if first time they did nothing.
I had a tract of land in Norman, Okla. they did this with, along with Oklahoma University and other land owners, the first time they did nothing, came back a few years later paid me again, (paid me the first time also), this time they drilled and capped the site, I have no idea if anything was found. I'm sure if there was any oil found, as I said it was, capped. I think they are doing this for future reserves, but I am really guessing here.
I was told, I would recieve conpensation if anything was, (used), it was most likely capped for future use, as I said so they dont have to release that information till product is used.
Contact a good Lawyer if your concern, I would get some type of industrial Lawyer who knows bussiness law, about mineral rights. If you don't agree with the other land owners they will just take it to court and get the right to drill. That is what they did to the other people in my area that (as I called it) buck up agianst them. And yes they won in the court as they drilled the secound time around. Find out if there are others that got this letter also, they would have to live in the same area, and they have to have everyones OK on this.
Most standard leases I have been involved with are for 3 years. If they don't drill by the end of that lease it expires. Most royalty percentages at least here in Cleveland county seem to be 3/16 though I have heard of some being a little higher in hot areas. The last lease my daddy-in-law signed for land here in Cleveland county they offered $100.00 per acre for his 10 acres just north of the Lexington wildlife area. No one ever drilled there and it's lease expired last July.
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Old 10-29-2011, 01:54 AM
 
Location: Eureka, Humboldt Co. CA
3 posts, read 21,653 times
Reputation: 17
I own small fractional interest in mineral rights in Section 21, T3S, R3W, Carter Co. OK (inherited). I have recently leased to R.D. Williams & Co. of Ardmore, OK. This is the smallest % interest I own in about 10 different parcels in Carter and Johnston counties, OK, and I've leased them all over last 10 years. Typical lease is for 3 years @ 3/16 royalty; the per mineral acre payment can vary but has steadily increased over 10 yrs. Many firms will offer a higher per acre bonus up front if you choose a lower royalty %, but I have been counseled over many years by older (experienced) cousins (who deeded me these parcels) to "choose the middle road," that is, go with 3/16 and less bonus up front vs lower % but higher bonus up front. I have also been sternly counseled to insist on royalty being paid on "gross proceeds" rather than upon "net proceeds." Once you lease (or do NOT lease) you must remain vigilant. Recently I had a parcel leased and as the lease was due to expire soon, I called to inquire if the firm intended to renew or extend the lease, only to discover there was a producing well on the parcel. I was told the firm had sent a division order for my signature (so I could be paid my royalty) but that I had not responded and that the letter had not been returned. The letter had been sent to a 3 yr old address, yet upon moving I HAD duly informed the firm of my new address. The royalty due me was in an "escrow" account and was ultimately sent to me. I do not know what the laws state about how long one's royalties must be held before they revert to the state. My experiences have taught me, as mentioned, to be vigilant and to periodically check to be sure the lessee has your correct address, etc. One can always call and ask if a well was in fact drilled and what was the outcome... Now, if you do NOT reply to a lease offer and a firm plans to drill under an entire section (approx 360 acres to a section), the firm can get permission from Okla. Commission despite your non-participation. However, any royalties that accrue (depending upon how many acres of the 360 "pooled" acres you own) are placed into an escrow account if the firm cannot locate you. Again, I do not know how long the accrual is held before the money reverts to the state. (I plan to consult an attorney about these sorts of questions. However, I'd suggest not a "business" attorney, but, rather, one who specializes in oil/gas/mineral rights in the applicable state.)
Now, as to keeping oneself informed, there are several routes to follow. (I live several thousand miles from my leased parcels, so it is more difficult to keep informed.) A visit to the county courthouse and a perusal of the county records (index book where deeds, leases, etc. are listed for your particular Township, Range, Section, Quarter, and fractions of quarters) will reveal date, book, pg, doc #, etc of recorded leases close to your parcel. You may be able to locate others who have leased, and to whom, and simply contact other lessors and ask them what they know about any producing wells, capped wells (whether capped due to low or unsuccessful production, etc.). One should also consult issues of the local newspaper, which frequently reports successful (or unsuccessful) drillings in the area, etc. If there are neighbors to your parcel/holdings, contact them and ask questions; neighbors are usually aware of successful/producing wells in their area -- even if the neighbors are farmers or ranchers. (Ranch foremen are typically VERY aware of happenings in their domain. Introduce yourself gracefully; take a box of donuts or other appropriate friendly gift when approaching locals. If your family lived in the area, talk about your family's history in the area. Explain your reasons for inquiring. Show an interest in THEIR family and THEIR jobs/familiarity with the area. A little "down home charm" helps considerably; I speak from experience in this regard.)
Above all, EDUCATE YOURSELF. Learn how to read a US Geological Survey map so that you can pinpoint the location of your parcel precisely. Local title search firms usually have useful maps or can direct you how to procure one. (US Geological Survey maps can be ordered online. Locate your parcel and know how to drive to it and/or walk to it if necessary. Have binoculars handy. But above all, learn to accurately plot your land on the survey map. And of course, learn how to charm/persuade courthouse clerks into showing you the plat books or index records (if the county's records ARE indexed) and how to use them to locate your parcel and any activity/recorded leases shown for it and neighboring parcels. Obviously, all this has to be important enough to you for you to invest the time and effort. You might find you enjoy the challenge of it all....
Happy hunting. "Tinker" of Eureka, CA.
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Old 10-29-2011, 03:31 PM
 
Location: Norman
81 posts, read 241,333 times
Reputation: 82
Hello all one thing a person can do is become familiar with the Oklahoma Corporation Commission oil and gas well database. If you know your legal land description you can look for wells drilled on your land.
www.occ.state.ok.us (http://www.occ.state.ok.us/orawebapps/OCCORWebAppsone.html - broken link)
If you get this far and can make it work go to New Well Browse and enter your legal description,
form 1002A is the production form that tells the state how much oil and gas were tested at the well.

This link may have to be a cut and paste thing.
Under "consumers" then go to "Oil and Gas", then "database"

Last edited by foonman50; 10-29-2011 at 03:49 PM..
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Old 10-30-2011, 09:17 AM
 
1 posts, read 10,108 times
Reputation: 10
Quote:
Originally Posted by tinkerok View Post
I own small fractional interest in mineral rights in Section 21, T3S, R3W, Carter Co. OK (inherited). I have recently leased to R.D. Williams & Co. of Ardmore, OK. This is the smallest % interest I own in about 10 different parcels in Carter and Johnston counties, OK, and I've leased them all over last 10 years. Typical lease is for 3 years @ 3/16 royalty; the per mineral acre payment can vary but has steadily increased over 10 yrs. Many firms will offer a higher per acre bonus up front if you choose a lower royalty %, but I have been counseled over many years by older (experienced) cousins (who deeded me these parcels) to "choose the middle road," that is, go with 3/16 and less bonus up front vs lower % but higher bonus up front. I have also been sternly counseled to insist on royalty being paid on "gross proceeds" rather than upon "net proceeds." Once you lease (or do NOT lease) you must remain vigilant. Recently I had a parcel leased and as the lease was due to expire soon, I called to inquire if the firm intended to renew or extend the lease, only to discover there was a producing well on the parcel. I was told the firm had sent a division order for my signature (so I could be paid my royalty) but that I had not responded and that the letter had not been returned. The letter had been sent to a 3 yr old address, yet upon moving I HAD duly informed the firm of my new address. The royalty due me was in an "escrow" account and was ultimately sent to me. I do not know what the laws state about how long one's royalties must be held before they revert to the state. My experiences have taught me, as mentioned, to be vigilant and to periodically check to be sure the lessee has your correct address, etc. One can always call and ask if a well was in fact drilled and what was the outcome... Now, if you do NOT reply to a lease offer and a firm plans to drill under an entire section (approx 360 acres to a section), the firm can get permission from Okla. Commission despite your non-participation. However, any royalties that accrue (depending upon how many acres of the 360 "pooled" acres you own) are placed into an escrow account if the firm cannot locate you. Again, I do not know how long the accrual is held before the money reverts to the state. (I plan to consult an attorney about these sorts of questions. However, I'd suggest not a "business" attorney, but, rather, one who specializes in oil/gas/mineral rights in the applicable state.)
Now, as to keeping oneself informed, there are several routes to follow. (I live several thousand miles from my leased parcels, so it is more difficult to keep informed.) A visit to the county courthouse and a perusal of the county records (index book where deeds, leases, etc. are listed for your particular Township, Range, Section, Quarter, and fractions of quarters) will reveal date, book, pg, doc #, etc of recorded leases close to your parcel. You may be able to locate others who have leased, and to whom, and simply contact other lessors and ask them what they know about any producing wells, capped wells (whether capped due to low or unsuccessful production, etc.). One should also consult issues of the local newspaper, which frequently reports successful (or unsuccessful) drillings in the area, etc. If there are neighbors to your parcel/holdings, contact them and ask questions; neighbors are usually aware of successful/producing wells in their area -- even if the neighbors are farmers or ranchers. (Ranch foremen are typically VERY aware of happenings in their domain. Introduce yourself gracefully; take a box of donuts or other appropriate friendly gift when approaching locals. If your family lived in the area, talk about your family's history in the area. Explain your reasons for inquiring. Show an interest in THEIR family and THEIR jobs/familiarity with the area. A little "down home charm" helps considerably; I speak from experience in this regard.)
Above all, EDUCATE YOURSELF. Learn how to read a US Geological Survey map so that you can pinpoint the location of your parcel precisely. Local title search firms usually have useful maps or can direct you how to procure one. (US Geological Survey maps can be ordered online. Locate your parcel and know how to drive to it and/or walk to it if necessary. Have binoculars handy. But above all, learn to accurately plot your land on the survey map. And of course, learn how to charm/persuade courthouse clerks into showing you the plat books or index records (if the county's records ARE indexed) and how to use them to locate your parcel and any activity/recorded leases shown for it and neighboring parcels. Obviously, all this has to be important enough to you for you to invest the time and effort. You might find you enjoy the challenge of it all....
Happy hunting. "Tinker" of Eureka, CA.

Hi Tinker.

My name is Don Watson and I just read your post. My wife and I are just in the early stages of this leasing mineral rights business. We are scheduled to get information in the mail this week . We have relatives (spelling) that live in Eureka that are involved in this adventure also and I grew up their. I was wondering if I could contaact you through e mail onec and a whyle?
Don
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Old 11-26-2011, 07:50 PM
 
Location: Eureka, Humboldt Co. CA
3 posts, read 21,653 times
Reputation: 17
Default To: Don Watson

Don: You're welcome to email me directly at tinker@suddenlink.net if you want, but I'm by no means an expert on mineral rights. I've simply related my particular experience with leasing my mineral rights. The whole matter has become rather complicated and difficult for me to keep track of, as I've had parcels leased to several different firms, for varying time periods, and keeping them straight in my mind (and in my files) is a bit burdensome.

My husband and I are both retired; moved to Eureka early 2008 from So. Calif., but I was born in Okla. The lands I own are the few remaining acres left from my family's Choctaw allotments in the Chickasaw Nation, given them from 1896 to 1907, before Okla. statehood. My family owned MANY acres, but sold them off over the years, unfortunately, so what is left is a small fraction of original holdings. Surely wish they'd not sold the land, but bit by bit, when someone wanted a new car, etc., I guess they sold off land.... I had one cousin who held on to his few acres and then deeded them to me, gradually, until his death in 1999. Also got a 5 acre parcel from a great aunt, but she had sold the mineral rights already, and I'll never know why, as she did not need the tiny $ amount she got.... very foolish, but she was age 98 when she sold the mineral rights.

Gloria Reck ("Tinker"), Eureka, CA
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Old 11-02-2012, 01:22 PM
 
1 posts, read 8,356 times
Reputation: 10
Quote:
Originally Posted by murlinevans View Post
I am a novice mineral rights owner/bargainer.

My family collectively owns mineral rights to the following tract: Durant Woodford 21-3, S-2 NW 4 of Section 21, Township 4 South Range 4 East, Johnston County, Oklahoma. (not sure how big this is, I own 3 acres)

My question is this; We have recently been contacted again by RD Williams -- an oil and gas leasing company -- about leasing our mineral rights for $400/acre for 3 years. I am awaiting paperwork to see what the other contingencies are.

This is the same rate they offered 6 years ago, which we accepted without question. I cannot recall the details of ownership if a 'strike' is made etc.

I am aware that natural gas exploration is booming in this area. I am trying to get a range of options on this offer. 1) Is it a fair offer and what is the room to negotiate/bargain as I am one of several shareholders of the total mineral rights. 2) Would I gain anything from "shopping this lease offer" around to other companies in the area and how do I find that information.

I guess the worst case scenario is I could live with their offer but am uncertain I am maximizing my leverage here ie. They've approached us, therefore there must be some value to this lease and also, their offer (lease term/rate) has not improved in six years (meaning they should at least compensate for inflation/cost of living/market value which they are not).

I will post more as I receive it, otherwise I am not inclined to sign over my parcel and concede to their offer just yet.

Thanks for any and all input. I am a writer in Austin Texas and admit I am in virgin territory here.

[EMAIL="murlin.evans@gmail.com"]murlin.evans@gmail.com[/EMAIL]
I own 24 mineral acres in tract 24 an i got $900.00an acre from them last year in feb
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Old 11-19-2012, 08:50 PM
 
1 posts, read 8,212 times
Reputation: 10
Default Help needed, where to turn? Concerning capped oil wells.

Hello all,
My dad had mineral rights to some land in Oklahoma. He received paper work in the 70's regarding leasing the land and drilling for oil, he was paid a royalty while the company drilled. The last my dad heard was the oil well's they drilled was going to be capped. This was around 1974 or 1975, and we have not heard anything from the company since. Furthermore, my dad passed away in 2003 and in his letter to us three kids was to stay on top of this issue because his royalties would pass down to his children. However, I have looked in all of his lock boxes and I can not find any information concerning where these oil wells are located and if there is any progress in releasing the oil. I do know the oil wells are capped in Oklahoma.

The help I need is where do I begin to find out any information regarding these oil wells. Maybe a database or someone to contact. I would appreciate any help from someone with this type of knowledge. You may also email me personally at [email]lakitaluvd@aol.com[/email].

Thank you
lakitaluvd.
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