I’m so glad to find this forum! I own 3.58 mineral acres in Cooke County, Texas and just received a lease offer from CRDTX. I’ve never heard of them. The terms are 5 years paid up lease with option to extend 3 years; 10 % royalty; and $150.00 per net mineral acre bonus consideration. I’ve never done this before so I don’t know if this is a decent offer. Anyone else know anything about this company and the offer they made?
Also, I noticed in the lease it doesn’t state who pays to plug the well when production is finished. How is that normally handled?
Thanks so much in advance for any help or advice you can provide!!
Welcome to the forum, I moved your question over to Cooke county. Suggest that you read the trail of message there.
Regarding this order. I would not go for a five year plus an option. Only three year. The eight year time frame is likely not in your favor. 10% royalty is unacceptable and below the usual minimum offer of 12.5% which is a 1/8th royalty. Most of us would want at least 3/16ths. In my opinion this is NOT a decent offer for the mineral owner. The group offering it would think it is great.
It is wise to get a good oil and gas attorney to look over any draft lease as most of them are not in the mineral owner’s favor and need quite a bit of edit work. The directories tab above has several Texas attorneys.
A 1/8 royalty went out with “wing tip shoes” back in the 1960’s. That’s an insulting offer. A 3 year lease maximum. 1/5 to a 1/4 royalty cost free. Oil and Natural Gas are going higher in the near term. Talk with your neighbor’s. Good Luck.
Thank you so much for responding and directing me to Cooke county! I had no idea about what direction to take and I truly appreciate your opinion. Thanks also for the information about the oil and gas attorneys directory. I’l look over that right away.
Thanks again!
BTW, impressive business profile.
JT