landowner

What are some of the factors that determine your decision in participating in a "test well"

It's a really low bonus with a really low royalty.  Either$125.00/acre and 18.75% royalty.  Or 130.00/acre and 12.5% royalty. Or they said they may be interested in aquiring my share of the leasehold interest.  There's more to it...like I may elect to participate for my proportionate share of the drilling and completion of this well under their terms. etc. etc.

 

This is in Oklahoma.  Anyone know a good oil/gas attorney in OK? 

 

I've never heard of this company, New Dominion, LLC.  I wonder if they are a flipper?

Has anyone heard of them?

 

Thanks so much.

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Permalink Reply by Scott on August 7, 2011 at 9:03
And your entitled to your opinion as well. Be that as it may, I still don't think I would need to consult an attorney before signing a lease. I'm plenty confident I can negotiate the terms and lease form that would protect my own interest. 

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 7, 2011 at 9:13
And it is possible that you can, Scott.  However IMO it is not responsible to suggest that a majority of mineral owners can do so successfully on their own.  There are far too many varying details from one mineral tract and/or ownership interest  to another.  In an age of horizontal development the standard lease language doesn't cover all that it should.  I have a new lease form on my desk that has two and a half pages of "no cost royalty" clauses.  That one section is as long as operator's standard form leases.

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