AboutFrederick 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.
Question I was just offered $400 per net mineral acre with 12.5% royalty interest for 3 yrs. or $350 per net mineral acre w 18.75 roayalty for 3 yrs, no bonus with 25% in Section 22, Township3 south, range 2 East, Carter County, Oklahoma. I inherited it from grandmother and don't know what to do from here. I just received this offer June 12, 2009. If I don't respond by June 24 they will commence a pooling application before the Okla Corp Comm Please advise.
Answer Carol, don't let them rush you. They may apply for a pooling order on June 24, but it will take at least 30 days after that to be approved so June 24th is not really a deadline. You will be notified by mail of the pooling application as well. This will give you at least a couple of weeks to respond and lease if you want to. Besides, being force-pooled is not the end of the world anyway; it's much like a lease, except shorter, and the terms are dictated by the State instead of the oil company, and is usually based on previous poolings in the area.
If you'd like to lease however, than I'd ask them for $500 per acre and 3/16 royalty unless you really MUST have this leased now! Section 22 was pooled last year for that amount and I suspect they might agree to match that. If not, perhaps they'll get close.
Christeve Oil Inc. (Houston, TX); and BNK Petroleum (Camarillo, CA)are two of the companies currently leasing in your section 22, and perhaps one of them is the company that contacted you.
Others leasing nearby sections include Chesapeake (Oklahoma City, OK) and RD Williams and Co. (Ardmore, OK.)
You might contact these companies and see if they can better your current offer. If you call their main office you can ask for the "land" department, or simply tell them you're a mineral owner in Carter County, OK, and you'd like to lease your minerals and noticed they have leases in the area. That should get you through to a "landman" who should be able to help you.
I would ask for a "depth clause" in any lease you are asked to sign. They won't include one unless you ask, but it's a fairly common clause and they should have no problem agreeing to include one in your lease.
Hope I've been able to help.
Frederick M. Scott CMM
