Thanks Bob! I will also try and post my handout later this week for those who cannot attend.
Has anyone heard of The Land and Mineral Company leasing out of Texas for Bent County?
I am interested in reading Ms. Keller's handout. Living is southwest New Mexico seems to have keep me out of the Kiowa County loop. Are there any other companies besides McDonald offering leases near Towner, Co?
I would also like to read the handout. How can we do that?
Hope this works. I think you should be able to click and download a copy of the handout from Monday's presentation: Feldmann Nagel Oil & Gas Handout
Thanks Ms. Keller, I appreciated the posting.
I just received a letter from McDonald Land Services offering $150 per acre for the mineral rights. I live in California. Not familiar with the whole leasing of mineral rights. They were given to me by my grandmother a long time ago. I have so many questions I don't know where to start. What happens to the people who own the land but not the mineral rights? Do they get anything from this? When did all this activity start in Kiowa County? Is there one area that seems to be the hot spot? Is it gas or oil they are looking for? Where can I go to get some answers? Anyone in town who is knowledgeable and or helpful? Should I get a lawyer?
Thanks for any and all help!
Linda,
Yes there can be a lot of unknowns.
There are several companies making offers in Kiowa. The two main ones are McDonald Land Services (Oklahoma) and Diamond Resources (North Dakota). They both first contacted me in July. It was only last month that I did finally sign a lease with Diamond Resources. At that time (July) the typical initial offer was $25 or $50/ac, 1/8 and yr. term with yr. option. As usual with time the offers got much better. My experience dealing with Diamond was better than McDonald and the offers from both were very similar, so I decided to go with Diamond. Also I had a previous experience with Diamond on a lease in 2000 in North Dakota and that went well.
If you only own the mineral, which it sounds like is your case, then the surface owners are completely independent and will usually get compensated a small amount for the use of the surface and loss of crops, damages, etc., but nothing like what the mineral owner will receive.
The hot spot seems to be most of Kiowa County and into some of the Cheyenne and Prowers counties too.
For the Lease I have with Diamond they told me this is an oil play, not gas.
If you have never dealt with an Oil & Gas Lease before (or even if you have), it may be wise to consult with an attorney who deals with O&G Leases. The typical ‘Standard’ O&G Lease you get initially will need lots of improvements added. I made many changes to the initial lease I got from Diamond.
Normally I think it is good to wait a while before leasing and not just jump on the first offer; however I have heard that some drilling may start this spring or summer, so I think it would be good to not wait too much longer to do a lease.
If you have more questions you can post here or right click on my name and Send a Message.
Good luck!
Thank you so much for your response! I spoke with a representative from McDonald and they seem anxious to get me to lease to them. I am thinking I will contact Diamond to see what they might offer. McDonald said they are leasing 800,000 acres. That seems huge to me. What kinds of changes did you make on your lease? This is all Greek to me. I doubt if there are any attorneys here in Northern California that have experience with Oil& Gas Leases. Do you have anyone you could recommend? I copied the presentation that the Feldman Nagel law firm did. They are in Colorado. Wondering if I should contact them. My mind is a blurr with all this. I really appreciate you taking the time to help me!
Thanks again,
Linda
Just joined after receiving offer from McDonald in Dec. ($115/ac + 12/5%); what I've learned so far is most interesting (and encouraging; prices going up!) Am new to all this and tried to download the handout from the recent atty. presentation; had no luck; any tips? Also, would appreciate contact information for Diamond. Thanks! Jack W.
Jack,
Diamond Resources is 701 572-4523. At this point you should definitly be able to get something in the $130-$150 range (or more), 15% roy. and 4yr term with 4yr option and some better wording than what is in the 'standard' O&G lease.
Given the amount of activity in the Kiowa County area and the questions that many have about oil and gas lease offers, I thought I would post a link to our pro bono (as in free) services night on Feb. 28 from 4pm-8pm. We have several spots that are available on a first come first serve basis to try and answer a few oil and gas questions. Click here to sign up: Pro Bono Clinic
DISCLAIMER: The information in this posting is for general information purposes only. This posting should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this posting
I have found the results of the State Mineral auctions interesting and useful background info about who is leasing where, etc. To make it easier for me to analyze I complied all the auctions results from http://trustlands.state.co.us/Sections/Minerals/Pages/Auctions.aspx
into a single Excel spread sheet. I have attached it here for anyone to use. Colorado%20Mineral%20Auction%20results.xlsx or as a .pdf Colorado%20Mineral%20Auction%20results.pdf
Once the Feb. 2012 auction results are in I will add those and repost.
My husband and I just received an offer from McDonald for $150 per net mineral acre, 15% royalty, 5 yr primary term with a renew of 4 years. Our mineral right is located in the SW part of Kiowa County. We live in NE and not have had to deal with anything like this. What kind of drilling are they proposing in CO? What are other mineral right owners being offered? Is this a good offer or should we wait before signing a lease. We contacted a lawyer in Brush (robert chapin) last fall about other mineral right concerns and he was very helpful. Does anybody know anything else about him (good or bad). Does all mineral right owners and land owners have to sign a lease before an oil company can start to drill? Any other information about leasing would be helpful??
Elaine, See my comment below... I would try Diamond Resources. The first offer any of the leasing companies make is never as high as they will go, you just have to not wait too long or all offers could dry up (maybe).
Is any of this going on in Bent County?
Linda,
I don't know about Bent County, but the state did lease some property there from the Aug 210 auction, most pretty low below $9/ac but some as high as $35/ac. Most of that was leased by:
LoneTree Energy & Associates, LLC
3 West Dry Creek Circle
Littleton CO 80120
My family owns land in eastern Kiowa county SE of Sheridan Lake. We have a lease offer of $150 per acre plus 15% royalty. We are curious to know if this is close to what other owners have been offered. Thanks in advance for any information you can give us.
Yes, that is very similar for my property in T19S R49W... with a 4yr term and option to extend another 4yr at same bonus amount. I leased with Diamond, and I don;t believe they are leasing anything east of R49W. Likely McDonald is.
I talked to a McDonald landman this morning and his updated offer was $150 with 15% and 5yr X 4yr. He stated that they are trying to wrap things up in the areas they are interested in. Our MR are north and west of Towner.