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What and who is presently leasing in Roger Mills County, OK, Sec 16-12N-25W?  We have been offered $500/acre for 3 years.  We do not live in OK so need more information.  Thank you.

R.D. Davis and Ass. is about the only company buying leases right now, and they're probably buying for a client oil company (they may or may not tell you, but I think it may be Laredo Petroleum.) I live just south of here in Beckham County and can tell you $500 is probably too low currently. I'd shoot for at least $750/acre to $1000/acre and if they balk tell them (nicely) that you are aware of leases in other nearby sections (i.e. sections 4, 5, and 13 that were being leased for an average of $1500/acre earlier this year (which is true) and you'd like to get closer to that number before agreeing to lease.

The only risk you have in doing that is that they will say "no" and not talk to you again. It is a risk, but I'd say it's worth taking as $500/acre is too low in my opinion. $1500 might be too high, but somewhere in between would certainly be reasonable to ask for.

Also, make sure the lease includes a "depth clause" and at least a 3/16 royalty (rather than 1/8.) Don't agree to an "extension option" of an extra two years unless they are willing to pay you double the bonus you agree to on the first three years. If they won't, and still want the extension option, just tell them (nicely) that you can't agree to an extension without adequate compensation, but would be happy to lease to them again in three years at the then-current rates.

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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