Good day to all Any landmen out there who can tell me what companies may be seeking drilling contracts in southern Tarrant County, Tx. adjacent to I20 and Hwy 287? input is appreciated jana
Hi Jana
As fas as I know, the prominent players in that part of Tarrant County were CHK, XTO and Carrizo.
I read your previous thread. Are you still working on contract terms?
Hi Jim Yes, we’re waiting for a copy of their contract with tentative of 3,500 a w/ 22% royalty. They won’t budge on the royalty. The problem is that anyone else who might be interested has to visit the Courthouse and peruse the deed records. I’ve spoken with a rep for CHK, no return call from them. Will check out the other two you mentioned. XTO is who my personal residential contract is with (different location). Any overall suggestions? Wondering what others in this immediate area are including in any contracts. Lost Layperson jana
Hi Jana
How did you make out? Did you get a contract yet?
Jim
jana mccreary said:
Hi Jim
Yes, we’re waiting for a copy of their contract with tentative of 3,500 a w/ 22% royalty. They won’t budge on the royalty. The problem is that anyone else who might be interested has to visit the Courthouse and peruse the deed records. I’ve spoken with a rep for CHK, no return call from them. Will check out the other two you mentioned. XTO is who my personal residential contract is with (different location).
Any overall suggestions? Wondering what others in this immediate area are including in any contracts.
Lost Layperson
jana
Jana,
There are many players in south Tarrant County. If you have a large tract or you are the last holdout you can probably get better terms than what you have described. You need to find a good oil and gas attorney (with experience) who can help you. Most of us who have practiced oil and gas law for a number of years know how to negotiate a better deal for our clients. Good luck.
JIM
If possible you do not want to sign a contract that the oil company gives you. It will not be a good contract. The clauses in the contract will favor the oil company as they have many ways of taking deductions based on their contracts. For instance, the oil the contract may say that if post production expenses (compression, etc) are performed by an unrelated party that yor part of the expense will be deducted from your payment. The oil company may then deal with a subsidiary or a third party and get its expense rebated but it will be deduceted from your check.
These oil companies are not nice. They are going to take advantage of you and Chesapeake is one of the worst.
You also need to find out if your bonus is a reasonable one. They in the past have paid $25000 per acre and up.
Right now the price of gas is low. If you wait a while it should go up. At higher gas prices, the bonus will be better. Also, if you have a large tract you might try holding our for the 1/4. You don’t need to rush in. They may want your property more than you want to lease to them. You need to check with others in your area.
There is also a Railroad Commission office in Fort Worth. I don’t think they would know what leases are going for, but they should be able to tell you what driiling activity and by which oil company is going on in your area. It is worth a try anyway.
Jim Colley said:
Hi Jana
How did you make out? Did you get a contract yet?
Jim
jana mccreary said:Hi Jim
Yes, we’re waiting for a copy of their contract with tentative of 3,500 a w/ 22% royalty. They won’t budge on the royalty. The problem is that anyone else who might be interested has to visit the Courthouse and peruse the deed records. I’ve spoken with a rep for CHK, no return call from them. Will check out the other two you mentioned. XTO is who my personal residential contract is with (different location).
Any overall suggestions? Wondering what others in this immediate area are including in any contracts.
Lost Layperson
jana
Yes, there is a Railroad Commission office in Fort Worth, Texas:
City Hall, 13th Street Annex, 401 W. 13th Street Fort Worth, Texas 76102 (817) 882-8966
There are several operators you need to consider. EOG may be a possible player. I have been a producer for over ten years, and I’d love to help you out call me 832-860-3120.