Oil & gas discussion group for those interested in Gonzales County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Received first royalty check from EOG yesterday (7/16) for a property near Cheapside in Gonzales County. Here are some relevant details that some might find interesting. All of the oil, gas and plant products were all paid by EOG. Signed my division order in late May and the first check covered Jan-May production. No deductions except the 4.6 percent severance tax for the oil. The casinghead gas or plant products produced had virtually no taxes (near zero) taken out. I'm really not sure why? Also thought I would have some transportation deductions, but there were none. Not complaining.
Average price for Oil per BBLs:
JAN - $82.64
FEB - $82.32
Mar - $90.79
Apr - $100.05 and $106.91
May - $94.54
Average price for Natural Gas per MCF:
JAN - $4.89
FEB - $4.12 and $4.96
MAR - $3.98
APR - $4.31
MAY - $4.37
Call the Gonzales County appraisal office and ask how they determine taxes on your mineral rights royalties that are paid on mineral rights only. (I just learned Friday that there was such a thing) DeWitt County told me that they bill mineral rights owners with a well on their property annually based on the amount of oil estimated to be REMAINING IN THE GROUND as not just produced. I assume Gonzales does the same. Besides county, you probably need to check on Federal income tax requirements, like do you need to pay quarterly. I just started asking questions as I have hopes of someday receiving a royalty check. A landsman told me to very roughly his taxes have run about a month’s royalties. I have decided to consult a tax pro if they drill on my rights as the tax laws are so confusing.
Tax laws are very confusing. It appears royalty income is treated as ordinary income for the Feds, and at the end of the year you would fill out Part I of Schedule E (Form 1040). People that are self-employed have to report their taxes every quarter. I would like to know how local counties determine how much natural resources REMAIN in the ground for tax purposes. Do they go by what the oil/gas company gives them or is there some type of formula?
It was my understanding from DeWitt that the Tx Railroad Commission determines the estimated remaining oil/gas. The county uses a formula to compute the taxes based on those figures. Reportedly, the Commission is fairly conservative in their estimate and do not try to inflate the value.
I have no doubt that bonuses are being offered. Selling offers on non producing increased $4000 in the last couple of months, so leases should be at a premium also. Everyone wants a piece if you are in the Eagle Ford shale. I the large companies drilling in the area would be happy to have their landman contact you.
I am here to Help!
Johnny
On Aug. 2, Lucas oil announced that their Rainey unit 1H well in Gonzales hit oil and gas. They had not started the horizontal drilling yet. If you want to see where it is on the Tx Railroad Commission maps , the API is 177-32247
Curious about any leads on FM-1680 outside Waelder?
I was wondering if anyone has heard are knows if eog is planning to start driliing more around Smiley. I have a plac just South of Smiley they have leased from me and the lease ends this next August. They are drilling south and north of me. I am 3 miles south of smiley off county road 103 and 108.
Our property is located near CR301 and FM1116. We are open to lease. Please no middle men, also we are not interested in pooling.
Does anyone have any information on Investors selling any oil and Gas leases in Gonzalez county?
Chuck Schneweis
Exit Realty Preferred
That's a good heads-up to be aware of. Thank You Mr. Koonce.
You're welcome. Please help me spread the word.
Does anyone know why eog is not drilling at county road 103 just south of Smiley 2 miles. My lease is about to expire in August after 3 years and just was wanting to hear what is going on.
Does anyone know about prospects for drilling down FM 1117 off Hwy80? This is about 5 miles NW of Nixon area. I really appreciate any comments you may have. Wondering if anyone will ever drill this area.
Are there any Ahlhorn lease people in this group? If so has anyone received division papers yet?
Does anyone have any info on the Brothers Unit #4 (EOG)? thanks