I think I'll be moving my minerals over to these wells in Texas!! Does anybody know how I can do this??
Kaye,
I just emailed you that wheelbarrow you were asking for. If it takes more than 1 I'll send you more I thought you might want to take your minerals over to Chesapeake in Ok City. TEEHEE
Clint Liles
Has anyone added the "enchanced marketing clause" to their lease? Is it good or is it better to not add it?
What is the "enhanced marketing clause"?
Wilson,
It's where the lessor shares in the actual costs that enchances the value of the marketable oil or gas to receive a better price!
Kaye:
I have never heard of an “enhanced marketing clause” nor I have never seen a lease that contains one. According to your definition, sounds like a bad idea to me as the marketing phase should be conducted solely by the lessor prior to signing a lease.
I am well familiar with an "enhanced marketing" clause. This is where you would be sharing the costs of a processing facility to strip NGL out of the gas stream. NGL sells for about 1/2 the price of oil. Since gas is in a disproportionate cost reduced relationship to oil, your revenue is enhanced greatly by running the gas through a processing plant.
There are lots of problems. Suppose they make a central processing facility. How do you know they are allocating costs properly amongst your share of gas? Another thing. You are paying your share of costs, but you do not get the tax benefits of construction of and operating of the facility.
It is better to define market value as the value received at the point of first sale, free and clear of all costs to the point of connection.
Buddy,
Thanks for the explaination!
Charles,
Thank you, your right! I didn't know if this was something common used or not, but knew if I asked, I could get some good feedback! Thanks again!
My mom says the is a new smaller derick set up near the well that was drilled on the Rider lease north of Tolbert.
I have another question!! I noticed in the last Quanah Tribune under public notices... Hardeman County will be accepting sealed bids for Oil and Gas leasing on certain properties. Sections 125 and 142 of W&NW RR survey.Block H. I goes on to describe serveral tracts. Is that land belonging to county or what.
While I am asking questions here goes another. Does anyone know if the potential exists for drilling interests to move to west or northwest Hardeman County?
Thanks I seem to ask more than I offer!!!
Definitely NW. It looks like panther is going for the atoka formation. That still leaves the Barnett. I think there is multiple plays so make sure you have vertical Pugh clauses.
Does anyone know of a map that covers Hardeman County by sections AND has the towns and roads on it?
Dear Steve Lynch,
Here is a link to the Texas General Land Office GIS WEB map viewer:
http://gisweb.glo.texas.gov/glomap/index.html
Give the map time to fully download before clicking 'agree'.
In the 'Map Contents' box these are the settings I prefer:
~ Click the '+' left of 'Energy Resources' and put a check beside 'Energy Resources'. Scroll down and uncheck everything except: Tobin Completed Wells; Tobin Directional Bore Stick; Tobin Permit Well; Tobin Permit Bore Stick.
~ Uncheck 'Upland & Coastal Leases/Easements'.
~ Uncheck 'Renewable Energy'.
~ Check 'Original Texas Land Survey'.
~ Uncheck 'Submerged Texas Land Survey'.
~ Click the '+' left of 'Other Map Layers' and put a check beside 'Other Map Layers'. Click the '+' left of 'Uplands Section Label' and put a check beside it. Put a check beside 'Annotation Class 1'. Scroll down and uncheck everything except: Block Lines; Texas Counties.
You will have to zoom in close enough to get the section numbers to show.
Above the 'Contents Map' I prefer 'Hybrid'.
Enjoy.
Wilson Inc,
Thanks for all the detailed information. It is very much appreciated! I live just outside of Austin and I'm thinking of making a trip to Quanah to look around. The family's mineral rights are four miles east of Quanah.
I'm one of an undivided interest in mineral rights four miles east of Quanah. One family member has been offered $200/acre and 3/16. I'm not sure why I haven't been contacted yet, but I expect to be soon. Anyone have any insight into what is a common offer for that area? Thanks in advance.
Steve Last think I saw for lease couple miles north of red south off eldorado. It was force pooled at 450/acre. I would not go lower especially if going into the atoka or Barnett. P.S. don’t forget vertical Pugh clause top and bottom
Steve,
If your interest is rcorded at the county clerk's office you will probably be contacted soon. If you are not contacted you could ask your family member for the contact info to the landman they are talking with.
The best offer we have had in Hardeman County was for $200.00/acre and 1/5, but the lease language was 'take it as is'. So, we did not pursue negotiations. I consider leasing details in this order: royalty, lease languge (pugh clauses, shut in clause, environmental indemnity, surface restoration, etc. I assume you have a good attorney to help with all that.), lease term and bonus. I don't want to pass up many years of royalty trying to get a few more dollars in bonus now.
If your attorney is local he will be able to tell you what is being offered and what is being negotiated.
Happy negotiations.
Thank you for your advise. Here's the latest. My sister and I are in the mix now. The attorney for my relative made addendums which addressed the Pugh clauses which I was told the oil company would not consider. The offer was upped to $300 if they could add 2 more years to the lease and 1/5 (versus 3/16.) But they are apparently balking at the provisions my relative's attorney had added. Any thoughts of the possibility of getting an offer from another oil company if we pass on this one? If someone wants to respond privately I'll post my email address.
Steve,
I inhereited a 1937 lease with 1/8 royalty that is still held by production (HBP) because of no Pugh clauses, meaning we are not able to lease any of the remaining property that could still be drilled on or negotiate a higher royalty. I am sure my great grandparents were thrilled to get it and Pugh clause did not come into existence until the mid 1940's. If your lease gets production and you are OK with possibly never receiving any more bonus money because you are not able to lease any of the remaining property that could still be drilled on or get a higher royalty for yourself and your heirs then sign a lease with no Pugh clauses or other terms that benefit you.
My advise: offer to share the cost of a good attorney with your relative. I am blessed to have siblings that will work out our differing opinions to everyone's benefit. I hope you can work well with your sister and relative. By using conference calls and/or emails to each other you can agree on what to communicate by email to the attorney. Have that email CCed to everyone and by the attorney emailing his response to everyone you can all stay informed together. Then use conference calls and/or emails to each other to agree on what is best to do. (This applies to dealing with the landman, too.)
The last offer we had allowed no changes to their lease language which meant no Pugh clauses. We explained that was not acceptable and have not heard back from them. No regrets here. I never look at an oil exploration company as an adversary. I look at them as someone to try to make a deal with on agreeable terms. Pass on the terms you cannot agree to.
I could not tell if the extra 2 years was to make it a 5 year lease still possibly HBP or a 2 year extension still possibly HBP. Is being HBP OK with you? Your decision concerning that is none of my business! Only you can decide what terms your minerals are worth.
If you ever agree to any extension I recommend that you get an extra 2% royalty on any well completed during the extensioin period.
I am still amazed at all the oil acvtivity in Hardeman county in the last two years. I have not heard of any disappointing exploration results (dry holes) that would cause the exploration companies to leave Hardeman county in search oilier pastures. So, if there is production near your interest it seems likely to me that you will get other offers.
Good luck.