My Dad has a 1 1/2% override for this property. Is there currently any drilling activity?
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Nope, no drilling. Under potash. Company called CL&F permitted some wells last year in Sec 3&4 north of there. But I would not expect those to happen anytime soon.
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Most who own in or near the potash area hold them long-term. Really long. There is a market to sell the interest, but the mineral buyers know it is not likely that this interest will get full developed in the near future and so the prices are quite a bit lower than the core area. We have sold interests near here for our clients, so there are buyers…
My family has land in New Mexico, Carlsbad. We where contacted about oil drilling on the land. The landman want my mom to sign a lease, should we ask for a signing bonus?
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Hello @Mamu4783 Welcome to the forum! You will get all kinds of good advice here. Yes, anywhere near the Carlsbad area is generally a hot area. These days most landowners have the leverage and can dictate the terms. You certainly should be receiving a lease bonus and have a fair royalty, among other important terms. You can get general advice here as far as essential terms. If you are new to this, which it sounds like you may be, you might want to have an oil and gas attorney review the lease for you.
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Thank you. Yes I am new to this my dad took care of all of this before but passed away 15 years ago. He had other properties. He had other land that was forst pulled. So now my mom is getting invoiced as an owner, and she didn’t know she had to file a tax return.
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I bought 160 ac of federal leases in 9 and 10 for $50/ac in 2013. Went to a lot of meetings in Carlsbad with BLM and Intrepid Potash. It was not supposed to get drilled due to the tailings mountain and other lack of access. However, we surveyed and found a location to drill 9 and 10 which we called the Salty Rafter drill island and we had well permits designed and approved before I sold the leases to a major for $10,000/ac. I also had a 440 ac lease in Sec 4, same story different drilling unit. That sold to the same major but then I heard it has changed hands twice. Don’t fall asleep on this one, it could get drilled at any time. I believe based on phone calls I’ve had on my royalty in this area that 1% net royalty in a 1280 ac drilling unit to be worth $875k.