You are here:

Oil/Gas/Pottawatomie OK lease offers

Advertisement


Question
We have two different offers for Sec23-11n-03e of IM: 3 year with 2 year option to renew at 125% of bonus for 1/8 royalty and $250 NMA bonus or 3/16 royalty with $200 bonus or 1/5 with no bonus. There also is an option for participation which I don't think we would be interested in. Question I'd like to ask is this a fair offer for this area and is there any activity around there that is driving these offers? Thank you.

Answer
Not much activity in this township so I'd say you don't have much negotiating power here, nor are there many lease offers to compare yours with. I would concentrate on getting a no-deductions and depth clause included in your lease if you choose to lease. I would also not agree to more than a three-year term (including extensions.) I would not accept 1/8 even though the bonus is a bit more.

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

Oil/Gas

All Answers


Answers by Expert:


Ask Experts

Volunteer


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)

©2016 About.com. All rights reserved.