Leasing of Mineral Rights

[okietool]

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.

Actually, burning H2S creates Sulphur Dioxide, more hazardous than H2S but not as immediately lethal. The adavantage to burning it is Sulphur Dioxide is not as corrosive to iron as Hydrogen Sulphide. To me, Hydrogen Sulphide smells a lot worse than Sulphur Dioxide. There are a lot of sources for H2S other than oil and gas production.

There is H2s in a lot of places in Oklahoma, Exxon has a big "sweetening" plant right off 152 west of Sayre. Marathon has one down by Cox City. There have been times the sulphur extracted in the sweetening process has been worth more than the gas (runor has it).

As for the OP, look at the first offer, then shop it around, you can probably find most oil and gas producers land department listed on their websites.

If you have any relationship with the surface owner, you might let them know what you are doing, you don't have to and I'm sure they won't want to see a well drilled (unless they have dealt with oil and gas producers in the past), but they'll get their share.

There have been mechanisms in place a long time to keep EITHER side from sticking it to the other.

Just learn what your rights are and seek out your options.

 

[Rabbitcreekok]

Whatever you do, get a Pugh or depth clause in your minerals lease. The wells that involve fracturing are 15000 feet down. That is why I wonder how fracturing hurts water wells. I don't know of any water wells that are 15000 feet deep.

Anyway, find out from someone other than the landman the clauses you need in your lease.

 

[mons meg]

When my family went through this process in Kansas, we did it the right way. Found a guy at our church who was a former landman to look over the contract offers and gave us some great advice. From what I understand, leases in OK are still going to be higher than leases in KS, but leases in areas like Sumner County, KS were going upwards of $500/acre for 3-5 year terms.


Edit: And I hope they drill...and frack the hell out if it.