we have been offered a ' have and hold' lease during a 'primary term' with a company which will pay a delay rental of $250 per mineral acre to 'hold' the area. No delay rental would be paid once a well is drilled, and royalties are being paid. There is then a 'secondary term' whereby the lessee can setoff delay rentals already paid against future production royalties.
After that the lessee would pay the lessor 1/10th of net proceeds of the sale of oil and or gas produced. other payments, later there would be a payment for each well, and in the secondary term, if there is no production they would pay $250 per mineral acre leased.
We are not familiar with all these terms. In general, is this what one expects when signing lease papers to allow a company to drill one or more wells on property for which they have mineral rights.
we are novices in this and are just trying to understand the leasing process.
also, what does the "stop Following" message mean? I do want to have comments on my questions. also, for now, we would like to remain anonymous, while we are in the negotiation phase.
It is better to get a paid up lease, with the rental paid for the total number of years up front instead of yearly.
I don't know the current going rate for Harrison, but I expect it is a lot higher than $250 per acre.
1/10 is below even the old standard of 1/8 (12.5%). You should ask for 18%, at least.
"Stop following" is what shows up when you choose "follow". If you change your mind and don't want any more replies, you can click on "stop following" and you won't get any more messages from the group.
You can join the groups for some other nearby counties and get some ideas. Doddridge group used to be very busy and there is a lot of good advice and information there. It is directly west of Harrison.
Some time ago I was contacted about mineral rights in Harrison County and began the process of leasing my rights to CNX.
Before I was able to secure a contract, my son and only child was diagnosed with cancer and within the year passed away at the age of 26. My mineral rights were the last thing on my mind for the past year and more.
My question is, is CNX required to honor a contract initially dated Jan 2015 and not signed by me until Nov 2016? Are they bound at all to honor that agreement at this late date? I have attempted to contact both people I had dealt with and neither will return my calls, emails or messages. Any insight would be greatly appreciated.
Hello. I am new to this group and new to the experience O&G /mineral lease agreements; totally ignorant thereof. I recently inherited 1/2 interest in 35 acre lease agreement located in Harrison county. I have been recently approached as to my willingness to sell. I have absolutely no idea as to what is a fair price nor if the price offered is fair. Any suggestions appreciated.
Has anyone dealt with Arsenal or Mar Key, LLC? We got an offer to purchase our interest in mineral rights in Barbour Co. Property is 208 acres, in which we have an interest of 1.5 acres. They are offering $900, which seems a little low. Any info would be greatly appreciated. We already posted on Barbour Co. forum, but their last posting was in 2016. They only appear to have 5 members. Thought we'd check on some other forums to see if we could get some info. Thanks.