My family as been offered a lease for mineral rights in Fresno County, CA
Location: The Southeast Quarter of Section 32, Township 18 South, Range 16 East, M.D.B. & M.
APN 060-140-63(Ptn)
60% mineral interest of 160 gross acres= 96 net mineral acres
Basic information on lease: $40.00 per net mineral acre rental (200.00 per net mineral acre paid in advance for five years) for a five year term and a proportional share of the 1/6 th royalty payable to the mineral holders of the future production.
Is this a fair market value offer for the area? Is there any wells in this area if anyone knows?
This offer as been made by Onshore Leasing Corp. Kenneth L Mettler who said he works for a subsidiary of Occidental Petroleum Corporation that wishes to lease are mineral rights. He said his client has active production throughout California. But hasn't told me who his client is actually.
Mr. Mettler, who is a landman for Onshore as you know, is working for Vintage Petroleum. Vintage is a subsidiary of Occidental Petroleum (Oxy) and was a separate company bought by Oxy a few years ago. Vintage is the Oxy entity that has been taking leases in the Monterey shale play, which is where your Fresno property is located. Your property appeats to be located near the Coalinga field. This is a "hot" location right now.
In my opinion, $40 per net mineral acre is low. I would ask for $100. If they give you this, however, you will likely not get a paid-up lease as this would likely be over the amount that they are approved to offer for a 5 year paid-up lease. I don't understand your statement "(200.00 per net mineral acre paid in advance for five years)," however.
Again, in my opinion, the 1/6th is low. I would ask for 1/5th and agree to 3/16ths if they counter-offer.
Thank you Jean. I am new to the forum and mineral rights. My father passed and had the mineral rights on nearly the same area as Flora does in Coalinga. So now my siblings and I have about 1600 acres and someone has made an offer, but we are clueless as what to counteroffer. The last contract on the mineral rights property was in 2004 for 5 years, but nothing has been going on since then. I'm going through all the paperwork right now and your info is very helpful. I'll keep an eye on this discussion as well as others.
Is there a way to check a person's credentials who claims to be a Landman? I have not had any luck in searching the professional organizations online, like AAPL. I always check credentials of anyone I have to deal with from doctors to lawyers, etc.
We just received an offer from a title company in Bakersfield of $40 per acre for our mineral rights in Coalinga. The property is in Township 20 South, Range 16 East, M.D.B.&M. From what I'm reading in this discussion, it seems to be a low offer, but the agent said the amount is negotiable. He told me the property apparently is at the edge of Monterey Shale play and it would be a good place to drill from. I would appreciate any thoughts on this subject.
Thanks, Suzanne
Jean M. Pledger said:
Flora:
Mr. Mettler, who is a landman for Onshore as you know, is working for Vintage Petroleum. Vintage is a subsidiary of Occidental Petroleum (Oxy) and was a separate company bought by Oxy a few years ago. Vintage is the Oxy entity that has been taking leases in the Monterey shale play, which is where your Fresno property is located. Your property appeats to be located near the Coalinga field. This is a "hot" location right now.
In my opinion, $40 per net mineral acre is low. I would ask for $100. If they give you this, however, you will likely not get a paid-up lease as this would likely be over the amount that they are approved to offer for a 5 year paid-up lease. I don't understand your statement "(200.00 per net mineral acre paid in advance for five years)," however.
Again, in my opinion, the 1/6th is low. I would ask for 1/5th and agree to 3/16ths if they counter-offer.
I apologize for taking so long to respond. I've been busy helping a family get their lands in South Texas leased.
The AAPL is the American Association of Professional Landmen. They have offices here in Fort Worth, Texas at 4100 Fossil Creek Blvd. You can stop by their offices or contact them by Telephone at 817-847-7700 or through their website at www.landman.org .
If it is me you want to inquire about, I have been a member since 1982. My Certified Professional Landman (CPL) No is 5477.
If you would like to touch bases with some of the people I have attempted to advise and assist on The Forum, then accept my offer of friendship - that will take you to a list of some of them. You certainly have my permission to ask anybody on The Forum anything you want about me.
Except about whether I'm cute or not. You want to stay away from that one.
Hope this helps -
Charles
Suzanne Ammons said:
Is there a way to check a person's credentials who claims to be a Landman? I have not had any luck in searching the professional organizations online, like AAPL. I always check credentials of anyone I have to deal with from doctors to lawyers, etc.
The Land Companies are going to canvas the various companies' entire Prospect Areas at a flat, low, non-negotiable rate until they have scooped up all the cheap acreage they can.
In another year, they'll be back with 2 to 3 times that offer and will canvas the area again.
In another year after that, it might be as much as 10 times the original offer.
As development (drilling) begins, it may be up to as much as 20 times the original offer.
Be patient, gather information, and don't sign anything or agree to anything for at least another year.
Trust me on this.
Charles
Suzanne Ammons said:
We just received an offer from a title company in Bakersfield of $40 per acre for our mineral rights in Coalinga. The property is in Township 20 South, Range 16 East, M.D.B.&M. From what I'm reading in this discussion, it seems to be a low offer, but the agent said the amount is negotiable. He told me the property apparently is at the edge of Monterey Shale play and it would be a good place to drill from. I would appreciate any thoughts on this subject.
Thanks, Suzanne
Jean M. Pledger said:
Flora:
Mr. Mettler, who is a landman for Onshore as you know, is working for Vintage Petroleum. Vintage is a subsidiary of Occidental Petroleum (Oxy) and was a separate company bought by Oxy a few years ago. Vintage is the Oxy entity that has been taking leases in the Monterey shale play, which is where your Fresno property is located. Your property appeats to be located near the Coalinga field. This is a "hot" location right now.
In my opinion, $40 per net mineral acre is low. I would ask for $100. If they give you this, however, you will likely not get a paid-up lease as this would likely be over the amount that they are approved to offer for a 5 year paid-up lease. I don't understand your statement "(200.00 per net mineral acre paid in advance for five years)," however.
Again, in my opinion, the 1/6th is low. I would ask for 1/5th and agree to 3/16ths if they counter-offer.
Mr. Mettler, who is a landman for Onshore as you know, is working for Vintage Petroleum. Vintage is a subsidiary of Occidental Petroleum (Oxy) and was a separate company bought by Oxy a few years ago. Vintage is the Oxy entity that has been taking leases in the Monterey shale play, which is where your Fresno property is located. Your property appeats to be located near the Coalinga field. This is a "hot" location right now.
In my opinion, $40 per net mineral acre is low. I would ask for $100. If they give you this, however, you will likely not get a paid-up lease as this would likely be over the amount that they are approved to offer for a 5 year paid-up lease. I don't understand your statement "(200.00 per net mineral acre paid in advance for five years)," however.
Again, in my opinion, the 1/6th is low. I would ask for 1/5th and agree to 3/16ths if they counter-offer.
I am also holding mineral rights to a 1/4 section in Fresno Co., specifically, S.E 1/4 of Section 28 in Township 17, South Range 16 East, Mount Diable Base and Meridian. I, also, have been offered the same terms by West Coast Land Service, landsmen for Occidental. I am wondering if I should hire an atty. to negotiate and at least check over the contract before I (and my 2 brothers) sign it. I found a local firm, McCornich Barstow, etc., who say they will check it over for under $500. Does anyone think this is necessary and/or advisable?
Here is some commentary from a (apparently) well-known geologist re. this area:
Dear Ms. Patty Harvey:
Thank you for your e-mail. Per Jim Pryor's request I made a brief evaluation of your land located in SE/4 of Sec 28, T 17S, R 16 E in Fresno County, California. Your land is located in the north end of the oil prone San Joaquin Basin. North of you is the gas prone Sacramento Basin.
Your land is located about 3 miles east from tiny Cantua Creek Oil Field and about 6 miles west of a small Five Points Oil Field. The Cantua Creek Oil Field was discovered by Texaco in 1940. It produced about 40,000 barrels from 2 wells before abandonment. The production was from Eocene Lido formation from the depth of about 9,300 ft. Maximum proved acreage is 20 acres.
The Five Points Field was discovered by U.S. Smelting Refining & Mining Company in 1966. The field produces about 200,000 barrels from 3 wells before abandonment. The production was from the Eocene Lido Formation from the depth of about 9,150 ft. The proven acreage is 70 acres.
There are 5 wells drilled in the vicinity of your land (in the distance of 1-2 miles). All of them dry. The last well was drilled in 1980.
Based on the location of your land, it could have some potential for oil and gas exploration. The actual question whether there any prospect warranted actual drilling could be answered only after careful geological and geophysical investigation, including obtaining and/or purchasing of the available well logs and seismic data and their interpretation.