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Oil/Gas/Oklahoma Lease Offer


Have received an offer for an oil and gas lease on the following land located in Payne Co., Ok. Sec 7, T20N, R4E for $100 per acre, 1/8th royalty, 3 year term.  

In your opinion what would you consider a fair offer for this area?

Also, are there any existing wells in this section of land?

Thank you for your assistance.


If you have not already been "force-pooled" then you should be able to lease for at least $200/acre and 1/8 royalty, but I would suggest trying for 3/16 royalty instead. The section was forced-pooled in December for 1/5 royalty and no bonus as the default option, but other options included a bonus and royalty. The 1/8 option was $230/acre I believe.

There are several wells in the township currently, but none in your section yet, though Devon has filed a permit to drill one. The fact that there's a permit there leads me to believe you have probably already been force-pooled in the unit at the default royalty shown on the pooling order.

The Oklahoma Corporation Commission (the regulatory body for oil and gas in Oklahoma) has a wealth of information available online relating to oil and gas activity and production in Oklahoma. You can look up such things as drilling permits, recent production information, well completion reports, forced-pooling orders, and anything else that falls under their jurisdiction.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, 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.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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