Oil/Gas/Oil and Gas Leasing
QUESTION: we have an Energy company wanting to procure an oil and gas lease from us in Oklahoma. We weren't aware that my husband's late father had this land in Oklahoma, until we received the letter. It lists three options: 200.00/per net mineral acre, 3 yr primary, 3/16 royalty
100.00/ same as above but with 1/5th royalty and lastly
0.00 same as above but with 1/4th royalty.
It lists the land parcel information, but we have no idea how to locate this land. Or how to respond to this letter?
Our thanks to you for whatever information you can provide.
ANSWER: If you would like to e-mail me or fax me the letter, I'll be happy to try to locate the parcel and try to explain the choices to you.
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QUESTION: The description of the land is in the letter- section 24, n17, E3
But, my main concern is how do we find out if in fact our name is on that land on a tax roll?
Of course, you don't want to have the definitive answer that an abstract of title or legal opinion provide, or else you would be hiring one of those done instead of making this inquiry.
The land is probably in Payne county. If you knew which part of the section your father-in-law owned, then you could call the County Assessor and find out who is paying the taxes on it and then you could call that person and find out what they have to say about whether you are also an owner. That would not provide a definitive answer like a title opinion would.
Then you have the question about the options. The answer to that depends on how much risk tolerance you have, how likely the well is to pay, and how much the likely production will be. A well founded decision would be the result of a professional geologist's opinion or that of someone with similar knowledge.