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Oil/Gas/Cleveland County, OK Lease Offer


I received an offer from Global Land on Lot One and Lot Two and the South Half of the Northeast Quarter of Section Five, Township Nine, North Range One West, Cleveland County, Oklahoma

1. $150.00 per net acre, 1/8th royalty, 3 year primary term with 2 year option to renew.
2. $100.00 per net acre, 3/6" royalty, 3 year primary term with 2 year option to renew.
3. Sell all or a portion of your mineral interest for $350.00 per net acre.

Which option do you recommend and is there any drilling in this area?

If you own only a few acres I would ask offer them a ONE year lease, NO bonus, and 1/4 royalty. That way you won't have to tie up your minerals more than a year and if a well is drilled you'll get a 1/4 royalty instead of just 3/16 or 1/8. Most companies will offer a 1/4 royalty with no bonus and if I owned just a few acres I'd consider it. I wouldn't suggest a 1/8 royalty under any circumstances. It's just too low, even if the bonus is higher.

If you're not planning to sell, then I wouldn't opt for #3, and if you are I would check with some other potential buyers before just accepting the offer Global Land made and assuming it's fair.

There is a decent little oil well in the SW/4 of your section, and others nearby so yes, there has been drilling in this area, but most of the current wells are over ten years old. Not many new wells being drilled, hence the low bonus offer.

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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