Oil/Gas/Need someone to negotiate a lease
I inherited some Oil and Gas Leases a few years ago. Some in Garvin and 1 in PIttsburg Co. The one in Pittsburg had been under lease to Chesapeake for several years. They did not renew last July 2012. I have no idea how to proceed but think I need to find a "Landman"?
Can you direct me? Chesapeake does not wish to renew and says they are no longer working in that area. Thanks for any help or guidance. I am in Florida and have no idea.
The fact that Chesapeake is apparently "not working in" that area anymore does not bode well for you getting them leased again anytime soon, but that could change in the future as activity picks up. There may be other companies that would be interested in leasing these from you though. Easiest way to find other companies who may be interested in leasing these would be to visit the county clerk's office in those counties and see who's been filing leases in your section recently. The company name and address would be on the leases.
Since you live in Florida though (lucky you!) you might just CALL said county clerk's offices and see if they can help. IF they have time AND you ask them nicely they may be willing to take a quick look for you in the respective sections you own in (give them the section, township, and range) and fax you any leases that have been filed recently so you could contact the companies yourself. They would probably charge you $1.00 or so per page faxed to you, and may ask that you send them a check first. Additionally, many counties make their recent land records available online so you may be able to look for potential lessees that way if available. Call and ask.
If you can't find someone to lease them, you can still of course SELL them outright if you really need the money, but of course once they're sold you could never lease them again because someone else would own them. In those two counties I expect you could get anywhere from $600 to $2000/acre if you sold them, depending on where they are in the county (you didn't provide me a legal description.)
There are plenty of landmen out there, but most are busy working for oil companies so it's unlikely you'll find one available who will search out potential lessees for you. Additionally in most cases if you haven't been contacted already, it's unlikely anyone else could find someone to lease you either. Before hiring anyone, I'd go with the "contact the county clerk" method outlined above. I think that's the best way to find out if anyone else might be working the area that Chesapeake has apparently left.
Unless you have more than 100 acres it's probably not worth paying an attorney or landman to "get you a lease." As long as your contact info is up-to-date in the respective counties (probably is since Chesapeake apparently talked to you) then you'll likely be contacted if anyone wants to lease these minerals. If your contact info is NOT current in the county clerk's offices (i.e. the rights are still in her person's name you inherited from...with their contact info/name) then you might want to get that estate probated in Oklahoma so that everyone will be put on notice (by seeing the final decree etc.) that you own them now.
If you decide you can't get them leased, and decide to sell then of course I'd recommend my website, The Mineral Hub, as the best way to get them seen by potential buyers. You'll also get more per acre from selling than you will from leasing. Leasing is really just you giving a company permission to produce your mineral rights for you in exchange for an up-front bonus and a small share of any production they find. Selling means you are getting rid of the whole bundle of sticks, not just the right to produce (as in a lease) and so that's obviously worth more (or should be.)
Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub