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Oil/Gas/Hughes County, OK Lease Offer


I've received an oil & gas lease form on the following property:

2.2 acre mineral interest in Hughes County, Sec. 27, Township 7N, Range 9E.  They're offering 3/6" interest for 3 years.

1. Is there any drilling or activity in this area?
2. Do you think this is a good offer or should I make a counter offer?

With only two acres I'd shoot for a 1/4 royalty and no bonus unless you really need the cash right now. A producing 1/4 lease over time will more than make up for not receiving a bonus on your 2.2 acres with a 3/16 lease. Note: I say "no bonus and 1/4" because most companies will not offer 1/4 AND a bonus except in real hot areas (which this is not currently.)  

The Oklahoma Corporation Commission is the State regulatory body for oil and gas in Oklahoma. On the OCC website ( you can search for drilling permits, completion reports, as well as current or past production figures for wells near where your mineral rights are located. You'd need to have the legal description handy (Section, Township, Range) in order to narrow your search down to the correct area. You could also visit the county clerk's office in the county where your mineral rights are located and search for recently-filed oil and gas leases in your immediate area since leases are also a good indicator of the activity in a given area.  

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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