Leasing of Mineral Rights

[ZombieHunter]

Do you own the surface as well? Be wary of where your water well is in location to where they would want to drill, frakking is bad, and yes alot of landmen are crooked, plain and simple, most double if not triple bill, and/or buy minerals themselves and package them in neat tidy bundles for a hefty profit, Source? I work as a contract landman, only doing due dilligence and final report vetting from my house currently, the business is rife with the plague of speculation, de-regulatory practices, and unsound fiscal responsibility. The best thing to do is find a LOCAL oil and gas attorney, or speak with the judge if it's a small town, I have found that the local Judge 9 out of 10 times owns a GREAT deal of minerals in those country county's, families that produce Judge's tend to invest in things properly.

 

[Mad Professor]

, frakking is bad.

Are you kidding us? From someone in the industry.

Ok, what is "bad" about the hydraulic fracturing process?

 

[Poke78]

For the OP: you've had some gracious offers from knowledgeable OSA members to get straight info that will allow you to make a better decision -- take advantage of the offers. Any other posting beyond those is mostly ill-informed opinion that has little to do with your basic question.

In the broad sense of business dealings that involve situations where demand is high on a finite supply of a certain item, it is axiomatic that the first offer will not generally be the best offer.

 

[ZombieHunter]

Are you kidding us? From someone in the industry.

Ok, what is "bad" about the hydraulic fracturing process?

For one you are pumping a viscous mixture Into the earth's crust, which in turn causes pressure to build up, and release gas in fissures, earthquake activity on the rise anybody? Talk to geologists who aren't on the take. Secondly I have seen them first hand utterly devastate water wells, and in turn family farmland. I know for a fact the oil and gas henchmen cry foul at the subsidies into solar or alternative power, but fail to mention or even notice the shortcomings of Frak operations, let alone how subsidized oil and gas is. Don't say it isn't, what was ExxonMobil's income for fiscal 2012? And their tax liability? What about Devon? Chesapeake doesn't count, McLendon proves my point too well.

 

[stewartglock]

Wow, thanks for all the replies. I don't have the section, township and range info in front of me right now but I will get it to those that offered to look at it. Thanks again!

 

[reade]

I'll say this, ask lots of questions and talk to lots of local landowners. You may even want to have an attorney look at the contract.

Here in Osage county majors have been drilling horizontal wells. Here (not everywhere) they haven't been working out all that well. Many places here they have been getting H2S (poison) gas, it's deadly. I know men who work for one company in particular that have been hospitalized from it. Up on the Chapman Barnard ranch they "flare" it. This deals with the poison aspect but the flumes smell like an outhouse. To understand what I'm telling you you might want to dive up there and take a drive through and smell for yourself.

There are other places outside of Osage county where horizontal wells have been working great. As I said, ask lots of questions NOW and talk to others local to you. Every area is different.

 

[Perplexed]

As politicized as the EPA is, they're producing a report on fracking and its effects on the environment some time in 2014. In their progress report, released this past December, they identified 1,000 chemicals found in hydraulic fracturing fluids. The list is in Appendix A of the report, and it includes some rather toxic stuff. It'll be interesting when the final report comes out.

 

[kd5rjz]

If you don't own the surface rights anymore, it's a much simpler process - simply because you won't care what they do getting a rig in and out, and what happens to your livestock and wildlife after they start production. (Not that the well site is going to cause any real damage to your livestock or wildlife, but pumpers and service crews)

The main thing you need to do financial-wise is to take whatever contract you are offered to an attorney experienced in oil and gas, and get a professional opinion.

 

[tntrex]

Rare for that in Oklahoma however.

What happens anytime someone splits minerals or buys a new piece of land and previous owner retain a certain percent(example 25%)?

 

[nos8ed]

My dad leased some minerals over in Roger Mills county in western Oklahoma. He went back and forth with them before they finally doubled their original offer.