If the lease does not specify when surface damages are to be paid, I would ask for them up front.
FYI
Antares and Diamondback Energy Inc has entered into agreement to buy 11,500 net acres in Southern Dawson & Northern Martin Cos., TX
http://ir.diamondbackenergy.com/releasedetail.cfm?ReleaseID=783166
Hi Carla again, If these are your main concerns - I’d run (not walk) to an O&G Attorney or Minerals Manager to review the lease offer. The devil is in the details. E.g., do they want you to pay for production, transport, compression, lifting costs?!!! If so, that’s like selling a new car to a buyer and then the buyer wants you to pay for insurance, gas, and maintenance. That would take a big chunk out of future royalties. Best, Ralpr
Hi Carla, TGIF! I think the going rate for RI is 25% in Dawson County and this is common state-wide the past couple of years. I don’t know what the latest bonus rates per acre are for Dawson County. I’d call around and see. Best of everything with this, Ralpr
Carla,
Be patient. The going price has been $400/acre for 3 years with a 2-yr option at $400 and 25% royalties with “no” shared expenses. Your friends will be back.
Carla, can you tell us who and where? That might help in deciding ‘going rate’. As Kool Kotten said, rate may be 400$ for Southern Dawson but maybe not for Northern Dawson etc.
My brother and I have the mineral rights to 300+ acres in Dawson County. All but 150+ acres is leased to a company. This same company is trying to lease the rest of the property. When the offer was made it was half value to current lease rates as I understand the rates to be (400.00 per acre and min. of 20% ). We countered at the going rate and have not gotten a response. It has been a couple of weeks. Is my information correct on the going rate and is there anything I should do to expedite this? Any advice would be appreciated.
Hello Carla,
My property was leased 2011 at $450, but at 20%. I agree that you should push for the 25%.
Hello Carla,
When our offer came over, I sent over the changes (addendum) to the lease on key points, which took about a month or so for them to come back on because they had to get with their legal department.
Like you, I found this site when I was looking for answers. It was hard because most of the time I didn’t even know what the main questions were that I needed to ask. The information people post on this site provides a wealth of knowledge that has helped me make more informed decisions. We are glad to have you on board.
Carla and Emily, and others who don’t know this yet - you can get the drilling permit and other valuable info from the Texas Railroad Cmsn. website. Kreg Harrison was kind to put together a video tutorial at http://www.mineralrightsforum.com/video/texas-railroad-gis-tutorial. Note this is for the ‘old’ GIS viewer at http://www.rrc.state.tx.us/data/online/gis/index.php# (scroll down past the New Pubic GIS Viewer. Once you’ve located your well, RIGHT click on the number, and then click on the link for the permit.
Hello Page…I have pulled the information from the RRC prior. The only issue I’ve had pulling from the site is that I did not always have all the information needed to pull up the right information on my well; however, I am still a novice when it comes to this field, but learning something new all the time. Thanks for sharing the links.
Hello Carla…my lease requires the lessee to contact me in regards to pooling. Currently, I am waiting for some documents to come across for horizontal drilling. A pooling consent, which will provide the total amount of acreage they are pooling from my land with another land owner, and surface agreements for the charted tank holding and water wells/pit. You can also ask them to send you a copy of the drilling permit, because it will tell you how deep the vertical well is to be drilled. The vertical well on my land was drilled to 11k feet. I don’t know a lot about the horizontal drilling, as of yet. I have read on the Internet, but my landman is really good about discussing things during each step of the way. He sends out weekly updates when activity is going on, which is nice. - but again, it was something negotiated in the contract.
Correction - you don’t have to Right-click on the well number. Just click on the dot and you’ll get a pop-up with a link for Drilling Permit.
Hello all! Thanks for sharing all this good info. Caution…no matter how much of a hurry others may seem to be in…do not sign anything until you have an experienced O&G atty check it over. I believe it is worth the investment towards possibly getting a greater return. We missed adding the “Pugh Clause” to a pooling agreement from years back…now it’s too late for us…forewarned is forearmed…Blessings to all
This is a great site, we have acres in dawson county leased, some in block 34 and some in block 35, the one on 34 is being drilled on right now, any info on block 35 lease rates and drill activity would be great, I live in Fl so it is hard to get any info here, our land is block 35 section 2 and block 35 section 28.
Thanks everyone
Thank you Clif I will check them out.
Landman companies are very difficult if not impossible to find or research. They are strictly the front contact for oil companies.
Willard you might Check Halcon Resources Corporation. Their stock market emblem is HK.
Kool Cotton, or anyone that has an knowledge on a oil company out of Longmont CO, their name is HK Resources, I looked them up on Google but their was not a lot of info. ANYTHING would be great!
Thanks