Hello everyone!
I have been approached by a party that wants to drill on my land. There are existing capped wells so the search for oil will not be difficult.
I have been offered a 1/5 royalty with $1,500 damages per hole. I live in Colorado and am not familiar with the going rates for this activity. I would appreciate any information the group could offer.
Thank you in advance,
Judy Z
Hello Judy,
The 1/5 royalty sounds good. Did they offer any bonus money per acre and how many years is the lease for? What is your Abstract # of your minerals and how many acres do you have to lease? Are there any active wells in the area of your minerals?
I just checked the RR Commission website and since Jan. 1 2013 to present time there have been 106 permits approved for Archer County for drilling, reenters, and recompletions.
101 Drilling Permits Approved
1 Reenter Permit Approved
4 Recompletion Permits Approved
Archer County is very active at the present time. As far as the $,1500 damage per hole I am not familiar with that issue. Possibly someone else will chime in about that issue. I would lease for a 3 year period only with no extention.
Judy here is a list of all of the approved permits for Archer County since Jan. 1, 2013. To view each permit click on the Lease Name . 11 pages.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...
Clint Liles
Hello Judy,
I agree with Mr. Liles. The damages could be a little more like $2,000-$2,500. I would be interested to see what they are offering you for Bonus.
I think Judy would have mentioned it if they were offering a per acre bonus. I suspect they are wanting to go cheap on these reentries and just pay damages per hole.
Clint,
I will pull the information you are asking for this weekend and post back. Thank you so much!
Judy
Clint Liles said:
Hello Judy,
The 1/5 royalty sounds good. Did they offer any bonus money per acre and how many years is the lease for? What is your Abstract # of your minerals and how many acres do you have to lease? Are there any active wells in the area of your minerals?
I just checked the RR Commission website and since Jan. 1 2013 to present time there have been 106 permits approved for Archer County for drilling, reenters, and recompletions.
101 Drilling Permits Approved
1 Reenter Permit Approved
4 Recompletion Permits Approved
Archer County is very active at the present time. As far as the $,1500 damage per hole I am not familiar with that issue. Possibly someone else will chime in about that issue. I would lease for a 3 year period only with no extention.
Judy here is a list of all of the approved permits for Archer County since Jan. 1, 2013. To view each permit click on the Lease Name . 11 pages.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...
Clint Liles
Good afternoon!
I have not been offered any bonus money. The person wanting to lease the mineral rights currently leases the surface from me for $25 an acre. That contract expires in 2016 and I will definitely up the price. However, I think they are wanting to not pay anything for bonus.
Thank you!
Judy
R Marley said:
Hello Judy,
I agree with Mr. Liles. The damages could be a little more like $2,000-$2,500. I would be interested to see what they are offering you for Bonus.
Also, I am going to definitely up the damages to $2,500.
Judy Zimmerman said:
Good afternoon!
I have not been offered any bonus money. The person wanting to lease the mineral rights currently leases the surface from me for $25 an acre. That contract expires in 2016 and I will definitely up the price. However, I think they are wanting to not pay anything for bonus.
Thank you!
Judy
R Marley said:Hello Judy,
I agree with Mr. Liles. The damages could be a little more like $2,000-$2,500. I would be interested to see what they are offering you for Bonus.
Thank you for the link to the well listing. It concerns me that I'm several hundred miles away and not able to keep a closer eye on activity. I have 240 contiguous acres that I own minerals on. There is an active well on the property at the present time. I signed that agreement in 1993 shortly after my father passed away. Agreed to a 1/8 royalty. This is the same group wanting the new lease on the same property.
Judy Zimmerman said:
Clint,
I will pull the information you are asking for this weekend and post back. Thank you so much!
Judy
Clint Liles said:Hello Judy,
The 1/5 royalty sounds good. Did they offer any bonus money per acre and how many years is the lease for? What is your Abstract # of your minerals and how many acres do you have to lease? Are there any active wells in the area of your minerals?
I just checked the RR Commission website and since Jan. 1 2013 to present time there have been 106 permits approved for Archer County for drilling, reenters, and recompletions.
101 Drilling Permits Approved
1 Reenter Permit Approved
4 Recompletion Permits Approved
Archer County is very active at the present time. As far as the $,1500 damage per hole I am not familiar with that issue. Possibly someone else will chime in about that issue. I would lease for a 3 year period only with no extention.
Judy here is a list of all of the approved permits for Archer County since Jan. 1, 2013. To view each permit click on the Lease Name . 11 pages.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...
Clint Liles
Judy, I think you may have not been getting the best bargain. I think I would ask for 1/6 royalty at least. I hope you don't have a salt water disposal well at $25 per acre leased for the surface.
No, I do not have a disposal well. The $25 an acre is leased for use as grazing and farming, not for minerals.
Thanks!
Judy
A bonus has never been mentioned. I didn't even know that part of the deal existed until I got on this forum. I am very tired of feeling like I'm being taken advantage of.
R Marley said:
Hello Judy,
I agree with Mr. Liles. The damages could be a little more like $2,000-$2,500. I would be interested to see what they are offering you for Bonus.
They need to lease your minerals to rework the well.
Clint,
Here is the land description:
All of the West 1/2 of Block 59 and all of Lot 70, SPRR A-421, Kemps WVFL Subdivision
I have one more question...How much acreage should be allowed around a well after the end of the lease for use by the lessee? The old contract I have gave them 20 acres around each hole. That seems excessive to me.
Thanks,
Judy
Judy Zimmerman said:
Thank you for the link to the well listing. It concerns me that I'm several hundred miles away and not able to keep a closer eye on activity. I have 240 contiguous acres that I own minerals on. There is an active well on the property at the present time. I signed that agreement in 1993 shortly after my father passed away. Agreed to a 1/8 royalty. This is the same group wanting the new lease on the same property.
Judy Zimmerman said:Clint,
I will pull the information you are asking for this weekend and post back. Thank you so much!
Judy
Clint Liles said:Hello Judy,
The 1/5 royalty sounds good. Did they offer any bonus money per acre and how many years is the lease for? What is your Abstract # of your minerals and how many acres do you have to lease? Are there any active wells in the area of your minerals?
I just checked the RR Commission website and since Jan. 1 2013 to present time there have been 106 permits approved for Archer County for drilling, reenters, and recompletions.
101 Drilling Permits Approved
1 Reenter Permit Approved
4 Recompletion Permits Approved
Archer County is very active at the present time. As far as the $,1500 damage per hole I am not familiar with that issue. Possibly someone else will chime in about that issue. I would lease for a 3 year period only with no extention.
Judy here is a list of all of the approved permits for Archer County since Jan. 1, 2013. To view each permit click on the Lease Name . 11 pages.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do?p...
Clint Liles
Hello Judy,
Your question about how much acreage around a well/lease I'm not sure about but I think 20 acres would be very excessive. The person that could possibly answer your question would be Charles Mallory. He is retired from the RR Commission and is very knowledgeable. I will personally ask him through an email or phone call tomorrow.
Judy I am posting a GIS(Geographic Information System)map of your Abstract A-421. Looks like a good area to have minerals.
Judy:
I sent you a friend request. We will discuss this situation further.
I just added you as a Friend. I look forward to hearing from you. My dad worked for the Railroad Commission when I was a very small child. I used to ride with him the Estelline, Texas - A place I was sure was at the end of the world.
Thank you,
Judy
Clint,
Thank you very much for the map - very interesting. And I very much appreciate you referring Mr. Mallory for clarification on the acreage question. I look forward to finding out what the amount should be.
Thank you,
Judy
Clint Liles said:
Hello Judy,
Your question about how much acreage around a well/lease I'm not sure about but I think 20 acres would be very excessive. The person that could possibly answer your question would be Charles Mallory. He is retired from the RR Commission and is very knowledgeable. I will personally ask him through an email or phone call tomorrow.
Judy I am posting a GIS(Geographic Information System)map of your Abstract A-421. Looks like a good area to have minerals.
Clint Liles
