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Oil/Gas/Grady County, OK Lease Offer Question

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Question
I just inherited mineral rights in Grady County Oklahoma. Sec's23 & 28 township 9N Range 7W. I received numerous offers. I am not sure what the going rate is per acre. I would be getting 1/5% royalty. I don't know what should be in the lease, can you please help me?

Answer
You should be able to get a fairly good lease here since it appears you are receiving multiple lease offers. Read our "leasing tips" article on the Mineral Hub website for tips on leasing and negotiating:

http://www.mineralhub.com/2010/09/oil-and-gas-leasing-tips-part-one/

I would also suggest obtaining advice from an oil and gas attorney as to what to include or exclude from your lease, and for advice on whether the bonus amount being offered you is fair or not. I would expect a minimum offer of $500-$600/acre in this area for a 1/5 lease but a local attorney could help you verify what the going rate in the area is. Grady County is pretty active right now so it's important to get a good lease, especially if you own more than just a couple of acres.

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

Oil/Gas

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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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