Family estate has minerals on 400 acres in this section. We have received a lease offer of $1500/acre from Leasing Partners, LLC out of Dallas. I have noticed on RRC web site maps that there is quite a bit of activity in the area. Is this price/acre low, medium or high (what is the going rate)? Does anyone know of this company?
Mel, that is a great area of Loving to own minerals. I would be happy to send your property to some of my operator contacts to see if they would be interested in making competing lease offers. Feel free to send me your contact information and we can chat about your property: [email protected]
My cousins, brother and I own minerals in block 55 of Loving County. We are on different lease renewal schedules, but in August 2014 (the most recent offer) my cousins were offered $3000 per mineral acre. I don't know how the reductions in the price of oil since then might have affected prices, but I would ask for more than $1500.
Mel, Start at $4000/acre and 25%.
BEWARE AND DO NOT DO THIS!!!! This is a trick lease form. The lease form states " As royalty, Lessor reserves an equal one-fourth (25%) part of the Royalty from the sale of all oil, gas and condensate.... This is NOT a 1/4 Royalty. It is 25% of the royalty = 1/4 X 14 = 1/16. Essentially you are "selling" 75% of your minerals for as long as there is production. The lease form only contains 2 paragraph regarding the lease terms and most of the remainder is about forcing you into binding arbitration if you are unhappy once you figure out what happened. GO TO A LAWYER before you sign a lease to make sure that you understand the meaning and legal effects of the document. I recently saw that someone in Ward County signed this document and it is terrible.
TennisDaze...I also received a lease offer from Leasing Partners, LLC for interests I own in Terry Co, Texas. I guess you've seen this type of lease before before? Do you have more details or information you could give? Are these people scammers?
TennisDaze said:
BEWARE AND DO NOT DO THIS!!!! This is a trick lease form. The lease form states " As royalty, Lessor reserves an equal one-fourth (25%) part of the Royalty from the sale of all oil, gas and condensate.... This is NOT a 1/4 Royalty. It is 25% of the royalty = 1/4 X 14 = 1/16. Essentially you are "selling" 75% of your minerals for as long as there is production. The lease form only contains 2 paragraph regarding the lease terms and most of the remainder is about forcing you into binding arbitration if you are unhappy once you figure out what happened. GO TO A LAWYER before you sign a lease to make sure that you understand the meaning and legal effects of the document. I recently saw that someone in Ward County signed this document and it is terrible.
I do not know who any of the principals are of this LLC. I have never seen any similar form. Some mineral owners may find the cash offer attractive and will sign without any understanding of the meaning of the terms of the document. Hang on to your open minerals and much better offers will be coming in the next year or two.
Phil Latimer said:
TennisDaze...I also received a lease offer from Leasing Partners, LLC for interests I own in Terry Co, Texas. I guess you've seen this type of lease before before? Do you have more details or information you could give? Are these people scammers?
TennisDaze said:BEWARE AND DO NOT DO THIS!!!! This is a trick lease form. The lease form states " As royalty, Lessor reserves an equal one-fourth (25%) part of the Royalty from the sale of all oil, gas and condensate.... This is NOT a 1/4 Royalty. It is 25% of the royalty = 1/4 X 14 = 1/16. Essentially you are "selling" 75% of your minerals for as long as there is production. The lease form only contains 2 paragraph regarding the lease terms and most of the remainder is about forcing you into binding arbitration if you are unhappy once you figure out what happened. GO TO A LAWYER before you sign a lease to make sure that you understand the meaning and legal effects of the document. I recently saw that someone in Ward County signed this document and it is terrible.
I've been getting offers of $2000 per net acre, but we only have a tiny share of a larger parcel.