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Question
I have mineral rights in Oklahoma County, Oklahoma (Section 11, Township 13 North, Range 1 East) and have been offered $100 per net mineral acre from a firm in Tulsa, Oklahoma.  I feel this is a very low offer and want to know how to find out what other mineral rights in the area are being leased for.

If I refuse their offer, I have been told I can be taken to court to force me to lease the mineral rights for a low amount per acre.  Is this true?

Thank you.

Answer
They won't "take you to court" if you refuse their offer, but they may apply to the Oklahoma Corporation Commission to have your interest (and anyone else they either couldn't find or couldn't reach an agreement with) "force-pooled" into their proposed drilling and spacing unit. The price per acre will be determined at the hearing by the administrative law judge (with input from the lessee) and is supposed to be based on the "going rate" in the area so it won't necessarily be a "low amount per acre"; in fact you'll probably have several choices of bonus amounts and royalty to choose from should the pooling order be approved and issued, but you will be subject to a "default" choice if you choose not to respond to the pooling order by making an election. You usually have 15 days after issuance to choose one of the options for royalty and bonus approved by the ALJ.

You can read more about leasing and forced-pooling on the Mineral Rights Blog on the Mineral Hub.

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

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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