I received, and currently looking over an Oil, Gas and Mineral Lease for my acreage right on the Bexar/Wilson county line (Alfonzo Steele Survey, A-662). My two neighbors signed right away without really negotiating with the landman. I would like to know what the going Bonus rate per acre is in my area. At first they offered 3/16th Royalty, but have increased it to 1/5 now. Can anyone help?
take no less than 1/4 - this is where the money is, and is reasonable. Bonus of $1000/ac is not unreasonable.
If you have 50+ mineral acres, definitely get the paid help of a pro.
Oldoak, that sounds like good advise.
We are in SW Wilson County. We had two leases here in Wilson County. Part of the land from one lease is in the Lang Unit. A young landman, named Paul Boland with EOG has contacted us regarding the land. He stated that EOG intentionally put a clause in their leases so that they could hold a lease even if the well is not economically feasible so long as it is producing. This argument seems to be inequitable and conniving on the part of EOG. We thought and were told that EOG was a much more reputable comany than that. When we informed them about other royaltly ownersin the unit, they claimed they have everyone else tied up until 2014 and they are not complaining. Holding 1300+ acres with a well producing 60-80 barrels a month seems to us as being abusive to the royalty owners. I guess they are counting on us (royalty owners) to be docile and take the abuse without doing anything.
To add insult to injury, they offered to re-lease the other property for a bonus that was a lot less than they paid the first time and for less royalty. We told them they now had the benefit of three additional 3-D surveys. From the tone of the conversation, they insinuated that the area was not very worthwhile. We argued that if the surveys showed that, why were numerous wells, drilled in every direction from the Lang after the surveys were done. His response was that just this little isolated area was not worthwhile.
Needless to say, we are extremely disappointed with the professionalism and tactics being used at this time. We are trying to determine if it is the operator EOG or the Landman Mr. Boland who is utilzingthese tactics. Not being familiar with this industry what do you all think of this. Maybe I am showing my inexperience in this but there it its.
Thanks