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Oil/Gas/mineral rights in Pontotoc County OK.

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Question
Hi,
My 84 year old mother-in-law has received a formal offer to obtain her a lease covering her mineral rights.  She is being offered $125 per acre for 6.8824 net mineral acres for a total of $860.30.  She is wondering if this is a fair price or is the going price higher or lower per acre than this offer.

The property is located in Pontotoc County, Oklahoma sections 10 of 4N-6E.

Thank you for your help,

Donald L. Hambrick

Answer
Crown Energy is the omly company I see that has filed leases recently in your section, though a company called American Energy is also leasing nearby, though could be just another version of Crown I don't know, but you might contact them to see if they'd offer more. Without a lot of competition it's likely that the $125/acre is about the going rate here. I would make sure and get at least a 3/16 royalty though, rather than 1/8. Not too much activity in this area currently unfortunately, so you can't expect leases to be going for much.

Hope this helps you out.
Frederick M. Scott CMM, RPL
The Mineral Hub
www.mineralhub.com

Oil/Gas

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Frederick M. Scott

Expertise

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.

Experience

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.

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

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

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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