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Oil/Gas/Grady Co. Oklahoma lease


I have 15 acres in Grady County, OK in 23-9N-8W
I was first offered $500 per acre and 3/16 for a 3 year lease and option for 2 more at 125%.
They called back the next day and offered $800 and 3/16 for a stright 4 year lease.
I would like to get 1/4 and maybe $500 for a 3 or 4 year lease or a 1/5 and 750.  The landman said they have made some 1/5 leases.
What do you think of the above?  Thanks

I think you should be able to get that. One company is offering $1000/acre and 3/16 royalty for three years in 9N-7W, which is fairly close to you. 1/5 and $750 for three years is not unreasonable. I would also not agree to the two-year extension unless it was for at least 150% of the original bonus, and would rather it be double frankly. No reason it would take them 5 years to drill a well. They are just trying to lock in "today's" price for 5 years by asking for the extension option.

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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