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Oil/Gas/mineral acre


I have a lease with Magnolia Petroleum for $250 per net mineral acre.

My deed states a" a tract of land containing 160 acres, more or less described as the SE/4 of Section 26, Township 21-N, Range 1-w " in Noble County, OK

They just sent me a check for $2200.  I can't get anyone to return my calls there to explain how that computes.

Could you help me understand how they came to this figure and should I cash the check or wait for clarification?

thanks for your help!!

There will only be one of two possible explanations:

1. They made an error in calculations...which is possible; or,

2. You don't own 100% of the minerals under the 160 acres.  If at some point in the past the then present owner of the property sold a portion of the minerals...or they kept portions of the minerals when they sold the surface then you would be left with the surface and only a portion of the mineral estate.

$2200 computes out to you owning only about 8.5% of the minerals and that's not much when you were expecting $2,200.

Now, if I were in your position, I would write them a letter and send it by certified mail.  Explain to them that you expected $250 per acre on 160 acres or $40,000.  They have not tendered you that amount so you are going to execute an affidavit declaring the lease void unless they call you or write you within 10 days to explain the short payment.  And then after 10 days, if they do not write you or explain it, then hire an attorney familiar with oil and gas and have them create the affidavit.  It should not be expensive to do.

Oh, I would not cash the check until you get the straight answer.  I would make a copy of it and keep the copy and return the original check - but, that's just me.

Hope you get the straight answer from them!  


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Cliff Williams


I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.


I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Multiple oil and gas topical columns on

I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

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