My family owns mineral rights on the above lands–League 271, Labor 24.
We recently received an extension check on a lease from 2015 for the same amount we received in 2015. There is no explanation for the check.
I have read quite a bit about the ROZ activity in this area, and we have had several offers to sell our mineral rights lately? Is there any relationship?
Should we go along with the extension terms of the lease for 2 more years? Thanks for any help offered. The check is from Murphy Oil Co. We leased to Tascosa Land 3 years ago.
It sounds like the extension option was included in the original lease agreement that you signed back in 2015. Extension options usually give the oil company sole discretion as to whether or not they want to pay for an extension of the lease at the original rate per acre. Therefore, if the company complied with the requirements of the lease and sent you the extension payment in a timely manner, you don’t have much choice other than to go along with the extension.
The good news is that the extension indicates interest in the potential of your property and there is a good deal of activity taking place around your property in southwest Dawson County. If your property gets developed, the royalties could become much more valuable than the lease payments.
Best of luck,
Patrick
Patrick J. Flueckiger
Attorney for Texas Land and Mineral Owners
I placed a large blue circle on what I believe is Dawson County League 271, Labor 24.
Murphy Exploration has permitted four horizontal wells less than two miles to the east.
The map was generated using the Texas RRC map viewer If you use the map viewer, enter “411” [number only, no "] in the Abstract box. One opens the abstract box by clicking on the magnifying glass icon and choosing “Surveys” from the drop down menu. Be sure to choose Dawson county. Click “query” button to generate map, then use zoom bar to reveal the Labors.
You are welcome, Susan! I am very impressed with forum advertiser Hilltop Royalties. They really do give free consultations. You might consider sending them an email for an opinion if you are considering selling some fraction of your minerals.
