A landman contacted me with a Brine Lease on my minerals in Van Zandt County TX. I know nothing about brine leases. Can anybody point me in the right direction to see what the going rate is?
Going rate is “not much” compared to oil and gas royalties and depends upon the state regulations. You need to get an attorney to help with this sort of lease. Depending upon the state, the surface owner owns the pore space for brine leases in saline aquifers. The operator usually owns the produced water in the oil and gas stream. In some rare cases, the mineral owner may be able to retain some of the extra minerals from the oil and gas stream if in the original lease before drilling. Get an attorney to help with the correct wording. The draft leases that I have seen were not well written and had conflicting language.
2 Likes
Thank you for your comments. My daughter’s best friend is a landman, so I have leaned on him for information. He has been doing a lot of work up in Sulpher Springs area on brine leases. Between the two of us, I think we have made a good deal with the landman who wants to lease my minerals. Thank You Again.
When it’s all settled and done will you please provide an update here? I’d be curious to know what terms you were able to negotiate. Thank you.