We have mineral rights in the Charles Welch Survey and the P. Johnson Surveys in Limestone County. Over the years we have leased for 3 years at a time. They are wanting a 2 year lease this time in the Charles Welch Survey offering 1/8th royalties per acre and $75 per acre cash bonus. We have oil rights in Nacogdoches county and took the lease to a lawyer for help in negotiating. In that case we already knew there was a new working well up, so we knew it would be worth the expense. This area of Limestone County was tested in the 1960's and '70's and the wells were either dry holes or plugged. In 1994 we were offered 1/8 royalties and $50 per mineral acre in the P. Johnson survey. Originally they offered $35 per acre and we negotiated for the $50 and better royalties. We got the $50, but they wouldn't budge on the royalties. In the letter reply they said, "I don't want to pressure you, but I would take the raise in bonus and hope that we are successful in our drilling efforts." They also cited the fact that it had been previously drilled and another lease in that area probably wouldn't be offered for "a very long time." We got another lease 3 years later in 1997. Does this sound like a good offer for this area? In the case of the other lease here in Nacogdoches County, we knew they were already getting gas and paying a lawyer would probably be worth the expense. In this case we are doubtful that they will find anything, but we don't know. Does anyone know anything about the activity in this area and if their offer is good enough or should we try to negotiate for more bonus or royalties?
Kenneth: My deceased father-in-law had some mineral rights that I think are somewhere around Mexia. Is the Johnson or Welch Survey anywhere near there? I don't want to spend a lot of $ to establish my ownership (two intestates and one testate to establish in the County). Thanks, Jim B
Kenneth,
What are the Abstract #'s to your minerals in Limestone County Texas?
Clint Liles
Charles Welch Survey, A-576. That is the only thing I see that looks like the abstract number there. Not really familiar with all the jargon. We are wondering if we should take the expense of having a lawyer look over the lease. I just don't want to be taken.
Clint Liles said:
Kenneth,
What are the Abstract #'s to your minerals in Limestone County Texas?
Clint Liles
Our interests are in the Kosse area. I guess about 100 miles or so SSW of Mexia. We have 106.04 net mineral acres in the Charles Welch Survey in that area.
Sylvester W. Brock, Jr. said:
Kenneth: My deceased father-in-law had some mineral rights that I think are somewhere around Mexia. Is the Johnson or Welch Survey
anywhere near there? I don't want to spend a lot of $ to establish my ownership (two intestates and one testate to establish in the County). Thanks, Jim B
Kenneth,
I am posting a link to 18 approved permits for Limestone County, Texas from Jan. 01 thru Nov. 13, 2013.
7 of those permits are for new wells to be drilled, 1 reenter and 10 recompletions. (2 pages)
Completion reports show up on a few of these wells that have been drilled this year. They are probably marginal paying gas wells. Production will probably not be very good on most of them.
Am posting a GIS map of A-576. Several dry holes, some plugged gas wells show up on the map.
Clint Liles
In idiot English, does that mean that the offer of $75 per net mineral acre and 1/6 royalties is something we should just take? Like I said, we paid a lawyer over $2000 a couple of years ago for help with a lease we already knew was drilled and producing very well, in Nacogdoches County (East Texas) b/c we knew there was a lot at stake. Looking at your link, it looks like nothing is going on in our lease right now. When we were offered a lease for our interests in Nacogdoches County, we learned that they don't tell you if they are already drilling or going to drill. I knew a well had been working close to us for several months and in researching on my own discovered it was a big producer and involved our rights.
Kenneth,
possibly in your Nacogdoches County lease you should have had wording to the fact that you would be notified if drilling was to take place and when.
Just my opinion but I would wait a while on possibly another lease offer from some of the other operators that are active in the Limestone County area. 1/6 royalty is near nothing to you. No, I wouldn't sign a lease for that piddildy amount. These 2 pages of approved permits lists the names of the active operators in Limestone County. You might want to call some of them about an offer. Good luck on a lease to your favor.
Clint Liles
Kenneth Swann said:
In idiot English, does that mean that the offer of $75 per net mineral acre and 1/6 royalties is something we should just take? Like I said, we paid a lawyer over $2000 a couple of years ago for help with a lease we already knew was drilled and producing very well, in Nacogdoches County (East Texas) b/c we knew there was a lot at stake. Looking at your link, it looks like nothing is going on in our lease right now. When we were offered a lease for our interests in Nacogdoches County, we learned that they don't tell you if they are already drilling or going to drill. I knew a well had been working close to us for several months and in researching on my own discovered it was a big producer and involved our rights.
That shows how little our understanding is of all this... We have never gotten more than one offer from any companies for our leases in the past. It has always been one company... In the past we have leased to a different company though - for this particular survey. It would be worth looking into.... We have leased to Heartland Resources, Inc. for this particular one. So other companies could be interested? I don't see Heartland in any of the approved permits. I thought a company pretty much concentrated on one area or survey and other companies had their own areas of interest, and they didn't share in parts. Thank you for you helpful reply!
Kenneth,
Here is a link to RR Commission approved operators in the state of Texas and their contact numbers:
http://www.rrc.state.tx.us/data/operators/ogdirectory/index.php
Clint Liles