Oil & gas discussion group for those interested in DeWitt County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I was contacted by a "landman" who says they are representing or contracted out by an operator who is ready and willing to drill. They are offering 1500 an acre and 20% royalty but will not divulge who the operator is and the lease will be in the lnadman's name. They also want me to sign a one year option instead of the lease. My land is southwest of Cuero.
Have you had any experience like this?
according to what I have been seeing in the other county groups the operator should be named in the lease There is a very long discussion that has been going on about leasing in Fayette co you can find it looking for fayette co posted by ben j. dach if you wade thru a bit of that it might help. or you could post your question on that thread, it has a really active following
Thank You
what is non participating royalty owner/ how do they figure what %, i notice the person in sw cuero is being offered 20% royalty, is that a figure close to what a nonparticipating royalty owner would get of is it less, i am in the process of trying to figure out where the royalty property is,
I have a Non-Participating Royalty Interest (NPRI) in some producing land in Gonzales County. My distant relatives reserved a 37/48th undivded interest in royalty interest when they sold the land/mineral rights. The current mineral rights owners negotiated a mineral lease with a 20% royalty. Out of the 20% royalty, my relatives (distant) and I receive 15.41% (20x37/48). Then this royalty % is divided among all of the heirs. I hope this helps.
Nancy,
I am a participating royalty interest owner. The 20% I was offered might not be a good deal since the landman (speculator) will not divulge the operator's name and will not put the operator on the lease. My suspicion is the speculator will turn around and sell my lease to the operator and negotiate a percentage of the royalty. I mean that if the operator is willing to pay 25% (like I have read others are getting a little north of my property) then maybe the speculator will get 5% (25% - 20%). The same with the lease bonus since they will own the lease. They get me to sign a 1500 acre lease bonus and they sign with the operator for more and pocket the difference.
This is just my suspicion by the way. I will not sign a lease now without the operator being on the lease and it is reasonably determined that they will drill and it is on par with the going rates surrounding my land. The speculator has promised that the an operator has contracted them out to sign up leases in the area but saying they won’t divulge the name – I cannot sign away my land indefinitely without full disclosure.
Nancy:
Please understand I do not want to advise you. There is a good chance I do not know what I am talking about. There is always a chance to price yourself out of the game. But I believe 25% with a $2400 bonus is a reasonable number in DeWitt Co.. I made the mistake of leasing to what turned out to be a speculator in North Texas. Four years later and still waiting.
Do the non participating royalty owners usually receive a bonus, and who comes up with the %, do we have a say so in the %, being a non-participating royalty owner, does the owner of the property and mineral right owner also have royalty rights too??, do they get the bonus, price per acre and the %, is the % for royalties only or the mineral rights, our is in North west dewitt county , north of yorktown and west of cuero, the oil company is wanting to drill on that property they said stage 1 what ever that means
I am here to help!
Johnny
We leased our 73+acres last year in DeWitt 1/4 royalties. Due to our age and the fact we have no heirs we are considering selling our mineral rights. Do any of you know of someone that is buying? Has anyone had a cash offer? If so will you tell me the mineral acre amount offered? I have no idea what our 50% mineral rights are worth. I had an offer a while back that was absurd. Only a person living under a bridge would consider it as serious.
I am curious if anyone else is in a "holding pattern" with Marathon/Hilcorp, as far as signing a lease with them? Specifically in the area north of Cuero, in the V between US 77 and US 183. We were approached earlier in the year, but unfortunately, the announcement was made before we finalized signing a lease. We have been told by the landman that nothing would happen until after the acquisition deal is finalized in November. This makes sense, but I was just wondering if anyone else has this issue.
Thanks.
What announcement?
Thanks,
Jerry,
The announcement that Marathon Oil purchased all of Hilcorp's existing assets in the Eagle Ford. For $3.5 billion! The announcement was made June 6th. The deal is not finalized until Nov.1. After that, everyone with a Hilcorp lease will be with Marathon instead. Not a problem, I was just wondering if others were waiting as well.
Is Houston Natural Gas still in business? Some 15 years ago my dad was receiving royalty checks from them on a pretty regular basis on mineral rights we had retained on property we sold to a neighbor in the Ratcliff area near Yorktown. Since my brother and I have not received any tax notices from DeWitt County, we are assuming the well was shut-in and capped. Just wondering if we are correct in our assumption,
Just a couple of years ago, I received a tax statement from Karnes County for well production value on a small royalty that my dad had inherited from an uncle and aunt. There had not been any production on this well for several years and suddently it was producing again. When I looked into it and contacted the production company, there was several thousand dollars sitting in an account for my brother and I as they said they didn't know how to contact us. Dad's will was probated and my brothers address is next door to my parents and he inherited their house. I'm sure they didn't mind not paying us as they were enjoying receiving interest on our money from a bank somewhere. Anyway, I'm concerned something like this could happen with Houston Natural Gas on the well we had in DeWitt County. Anybody have any ideas?
Up front, I am not a attorney, but I have been in the Oil and Gas business now for over 48 years. I know that in Oklahoma after 6 months; the operation and/or oil & gas purchaser has to pay prime interest on that account in suspenses! I would get in touch with an Oil and Gas Attorney or make contact with the Texas Railroad Commission. They are online to start with.
Johnny
Mary Ann:
Have you used the Texas Railroad Commission GIS Web Page? It may answer your questions. It was a little vague when I first tried to use it but after I got into it there is a lot of info there. If you have never used it I may be able to get you started with your research. Good luck!
Jerry, yes I have been on the RRC website. But I did some of my own reseach just recently and discovered that HNG was bought up by Enron before the melt down. Now, I'm trying to find out if it was one of the companies who were allowed to take back property from Enron in the settlement.
I sure you have already checked with a phone call to the TX RRC but if not I would give that a shot. They work for us.
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