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Question
Is there an efficient way to determine current lease terms for a particular township? Even going to the courthouse gives the "one dollar and other ..." phrasing. I am interested in current lease terms in Stephens County, OK.  Township 03 South, Range 04 West.
Thank You

Answer
Most accurate way to determine current lease terms is to ask your "neighbors" what they've been offered. Companies aren't going to advertise what they are paying everyone for leases of course, but in Oklahoma one can use, if applicable, the bonus amounts stated in forced-pooling orders in adjacent or nearby sections to determine the average lease rate that was paid by the applicant in the area in question.

Forced pooling orders are applied for by an oil company when they either can't find or can't reach an agreement with one or more of the mineral owners or other participants in their proposed drilling and spacing unit. In order to be able to drill a well without everyone's consent, they must apply to the Oklahoma Corporation Commission for permission to force-pool any recalcitrant or unlocatable participants into their proposed drilling and spacing unit.

At the application hearing the applicant must "testify" as to how much they have been paying for lease bonuses in the subject unit. The state will then use that information to come up with what they determine are "fair" terms and will include them in the forced-pooling order as elections, effectively forcing everyone who has not already agreed to either choose one of the options given, or, if they make no election under the pooling, to accept a default option.

The Oklahoma Corporation Commission (the regulatory body for oil and gas in Oklahoma) has a wealth of information available online relating to oil and gas activity and production in Oklahoma. You can look up such things as drilling permits, recent production information, well completion reports, forced-pooling orders, and anything else that falls under their jurisdiction.

Mineral owners can also check the Mineral Hub's Twitter Page for lease bonus  information, and it's updated fairly frequently with lease offers as they come in to our offices from various sources. We also post lease offers we receive on our own minerals and encourage others to do the same by submitting them on our contact us form, since we feel it benefits every mineral owner when the lease bonus amounts being offered in a given area are readily available.  

I took a look on the Mineral Hub's Twitter Page and didn't find any recent Stephens County lease offers listed. I searched as well for forced-pooling orders on the OCC Website in your part of Stephens County, and found parts of several nearby sections that were force-pooled for less than $200/acre. If they had been full section poolings, the amounts would have been higher, and thus if a potential lessee were leasing for a 640-acre unit I think they would offer proportionately more than these partial-section pooling orders indicate.

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

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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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