My family will be negotiating a lease on 450 acres in Weld Co. 7N 60 W. We are very interested in recent terms owners are getting for leases in that area.
Susie my family has been researching mineral rights in this location for 2 years. We live out of state making it very difficult. We are still working on decendancy paperwork. So to see that you posted was very interesting to me. Weld County recently put on line their records from 1865- present. We are hoping that this will make it easier.
I would be very interested in keeping in touch.
Lucia
Hi, I just completed a 3 year journey with leasing mineral rights in Weld County. For starters, Weld County is hot right now. It accounts for 75% of oil in Colorado. Check with the Greely newspaper, they ran an article about two weeks ago on how active the area is and that is where I got the 75% number. What you do need to know is to make sure you deal with an actual oil company. The landmen are just brokers and probably will flip your lease to whoever. Landmen, from my experience, do not have oil wells, do not drill, and from my point of view have no dog in the fight. I have posted in the past about what transpired with me so I won't go into the history. Having said that, I settled with the oil company for what I felt was really their final offer (Had two previous "final offers") and I was satisfied, but it took me 3 years. My family signed immediately three years ago with a landman and they left thousands on the table when compared with my deal. So, take your time, do your research and know what "forced pooling" means. Within the last two days, I received two letters from oil companies wanting to buy my lease and/or share my interest in the minerals even if I have not received any revenue. One is a real oil company the other may be a landman. I just filed them away. Since I got them that means my family also was approached. They might bite. I am going to wait.
Susie-
Your area is interesting, the Colorado oil & gas commission has a page for drilling data, OG fields, rig type, etc. follow it by:
cogcc.state.co.us > maps > announcements, to new version, once the map loads > look top, zoom, enter T&R
On the left side, look for and activate fields, directional, rigs, permits issued and pending- Note: It may load slow depending on your system and DL speed.
Your looking down at the activity in your area, I'd keep your section #'s to yourself. Good luck, I went through the procedure from my grandfathers to my father to me last year. Your at the right place !
Jon
Susie,
I negotiated about the same amount of land near you in 2011 and our terms were $600 for a 3 year lease with a 1 year extension for an additional $400 and 20% royalty. We have another lease maturing soon and there isn't as much interest but it is also for only 188 net acres. The top bonus is $750 but only 18% royalty. Might have to wait to see if I can still get 20% but it is getting harder now than last time. Location is really important and being a few miles apart can make a big difference so this is just a starting point. You should contact the oil companies directly to see if they have an interest. Also, make sure your title is clear before you start negotiations. It makes for a stronger case if you have already done some homework. Welcome to the forum!
Hi Susie,
Did you negotiate your lease yet. I might be able to help. Michelle Smith, President National Association of Royalty Owners, 720-318-1763
i have minerals not far from this, and am negotiating with noble energy at the moment. are you all saying that i won't be able to do any better than 20% royalty and $$400/ac bonus?
thanks
20% is the tope royalty in the state most are around 16% and if you got $400 an acre you did well
Regina,
Just so you know. I am a Landman and I work for an operator in Denver. Your broad assumptions are very misleading. We operate 40 wells in Weld County so we do have a dog in the fight. I assume you are talking about brokers who contract Landmen for their projects. Brokers work for an oil company to buy leases or they buy leases to flip them. If you had a bad experience, I can understand, but please don't lump all Landman into one category. I have been doing land work for 13 years now and I have been a contract Landman also. Every bunch has a couple of bad apples. I am proud of what I do and I have built many lasting relationships with mineral owners over the years.
regina redmond said:
Hi, I just completed a 3 year journey with leasing mineral rights in Weld County. For starters, Weld County is hot right now. It accounts for 75% of oil in Colorado. Check with the Greely newspaper, they ran an article about two weeks ago on how active the area is and that is where I got the 75% number. What you do need to know is to make sure you deal with an actual oil company. The landmen are just brokers and probably will flip your lease to whoever. Landmen, from my experience, do not have oil wells, do not drill, and from my point of view have no dog in the fight. I have posted in the past about what transpired with me so I won't go into the history. Having said that, I settled with the oil company for what I felt was really their final offer (Had two previous "final offers") and I was satisfied, but it took me 3 years. My family signed immediately three years ago with a landman and they left thousands on the table when compared with my deal. So, take your time, do your research and know what "forced pooling" means. Within the last two days, I received two letters from oil companies wanting to buy my lease and/or share my interest in the minerals even if I have not received any revenue. One is a real oil company the other may be a landman. I just filed them away. Since I got them that means my family also was approached. They might bite. I am going to wait.
Hi, I think an objective determination of bonus rates and royalty rates can be found on the weld county website. Go there to see what rates they have received from auctioning their land. Some of the bonus amounts are $2500 to $2750/acre with a royalty of 25%. They have posted their leases and while the bonus amount has been redacted out, the royalty amount is there. You can also see which companies bid on the leases and what the winning bid amounts were. Go to this link: https://www.co.weld.co.us/Departments/Purchasing/CurrentRequests/Oil&GasLeases-BidsandTabulations.html
Some of the users of this forum have said that they got a bonus of $400/acre and a low royalty. While that may be true a lot has changed since 2011. You would be giving away the farm if you got so little. The oil co's would be getting a steal. Hope that helps.
Permalink Reply by sj 1 second ago Delete
<p>Some of the users of this forum have said that they got a bonus of $400/acre and a low royalty. While that may be true a lot has changed since 2011. You would be giving away the farm if you got so little. The oil co's would be getting a steal. Hope that helps.</p>" _setvalueurl="http://www.mineralrightsforum.com/group/weld-county-co-oil-gas/forum/comment/update?id=4401368%3AComment%3A413913"'>
Hi, I think an objective determination of bonus rates and royalty rates can be found on the weld county website. Go there to see what rates they have received from auctioning their land. Some of the bonus amounts are $2500 to $2750/acre with a royalty of 25%. They have posted their leases and while the bonus amount has been redacted out, the royalty amount is there. You can also see which companies bid on the leases and what the winning bid amounts were. Go to this link: https://www.co.weld.co.us/Departments/Purchasing/CurrentRequests/Oi...
Some of the users of this forum have said that they got a bonus of $400/acre and a low royalty. While that may be true a lot has changed since 2011. You would be giving away the farm if you got so little. The oil co's would be getting a steal. Hope that helps.