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About Frederick M. Scott CMM RPL
Expertise
I can answer questions about oil and gas leasing, and give suggestions on negotiating a good oil and gas lease and how to best deal with oil companies or their representatives. I can answer questions about buying and selling oil and gas royalty or mineral rights. I can help with questions concerning forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience
I am a Certified Professional Mineral Manager (CMM) (certified by the National Association of Royalty Owners in Tulsa, OK) and have managed my own oil and gas properties in Oklahoma for over 10 years. I have dealt with many landmen, attorneys, and other oil and gas professionals in the course of doing so. I am also a member of several professional associations and have written articles of interest to royalty owners which have appeared in several industry publications. I have prepared deeds, title work, and done curative for my own minerals; and have acquired a good deal of knowledge on the subject of oil and gas law and landwork in general in the process. I am the owner of Timbercreek Mineral Company, LLC; which was formed as a vehicle to manage family mineral interests, and as a way to facilitate the buying and selling of oil and gas interests for other people.

Organizations
NARO, NADOA, AAPL

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, Landman Magazine, and several royalty owner association groups newsletters.

Education/Credentials
NARO, NADOA, AAPL

You are here: Experts > Industry > Oil/Gas > Oil/Gas > Lease options Kay County, OK

Oil/Gas - Lease options Kay County, OK

Expert: Frederick M. Scott CMM RPL - 11/7/2009

Question
I was recently contacted by Bagely Title, Inc. re: 4 net acres of minerals I inherited in Kay County, Oklahoma, (S1/2NE1/4 of Section 7-T27N-R5E). They have offered me the following options:
1. Lease the minerals with a 3 year term and a 1/8th royalty for a bonus of $50 per acre
2. Lease the minerals with a 3 year term and a 1/6th royalty for a bonus of $25 per acre

I have no experience with this and therefore unable to judge which, (if any), of these options is proper. Should I / can I negotiate for more? And if so, what do you feel are the terms I should try to for?

There are no other terms in the letter I received. Is there more I should be concerned with?

Answer
Ken, I'd tell them you'll lease for $75 and 1/8, or $50 and 3/16 royalty; both three years with no extension. If they squawk about it too much remind them that Section 17 (immediately SE of your Section 7) was leased and force-pooled for those amounts in September.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
Timbercreek Mineral Company, LLC

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