Oil/Gas/oil and gas lease
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Question
My Brothers and I received a letter from Chesapeake Energy wanting to know if we were interessted in selling or leasing our land.We have 74.8 acres and they just want 18.8 acres.The land is in Woods County,Oklahoma, Section 18,Township 28N,Range 13W.
Chesapeake gave us an offer of $200 per acre for 5 years with 3/16th royalties.The lease shall remain in force for a term of 5 years from the date(herein called primary term)and so long thereafter as oil or gas,or either of them,is produced from said land or lands pooled therewith.
We would like to know if this is a good deal or if we might be able to get more out of this.
I have been living in Germany the past 24 years and cant do to much from here.Hope You can help Me.
Respond to them in writing, immediately, by certified mail with return receipt requested. You or your predecessors in title have been named in an application for pooling in Section 18. If your minerals are in the West half, there is a "forced pooling" action effective now. If not, there will be a similar action for the East half later. The NW corner and SE corner are probably productive.
Go to the website for the Oklahoma Corporation Commission and look up cause (CD) #200705499, 200705498, 200705497 and 134621.
In your letter ask for 25% and 100.00 per care. Just get it documented. That way you won't be forced into anything. It is imperative that you act quickly to stop the clock on them.
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Answers by Expert:
James H. McConnell, CPL
Expertise
READ CAREFULLY BEFORE ASKING ME A QUESTION I will try to answer questions about Oil & Gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not in Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term of the Lease or conveyance, the royalty and the amount offered. Failure to provide this information will result in the question being rejected. I have answered more than 3800 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you. If you do not rate the first answer, do not send a follow up, because I will reject it.
Experience
I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.
Organizations
American Association of Professional Landmen
CPL #5303
Education/Credentials
BA NSU, 1971
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