Lease Offer Dawson County Taylor County School Lands

Texas Mineral Rights Dawson County, TX
25

Hi there - Sorry to bother but I have been reading along with this thread, trying to get some insight for myself. I know 0 about mineral rights, and even less about anything to do with oil. I am a peanut man and know the business inside and out but when it comes to land, leasing, etc - I am in the dark.

To get to the point - I have been approached about some land in Dawson county i was unaware I even hold mineral right to (through my grandfather). To be exact it is 78 acres, East Half (E/2) of the North West Quarter (NW/4) of Section 4, Block 36, Township 5 North, T. & P. Railway Company Survey, A-458, Dawson County, Texas.

The offer from CGS is $650 per net mineral acre for three years. This is a PAID UP LEASE with no obilgation to actually commence any operations during the primary term. Then there is a provision to extend the primary term at any time for an additional 3 years by paying 650 per net mineral acre. Royalties offered are @ 22.5% of the produced.

Anyway - sorry if that is a lot of un-necessary detail. I’m just trying to find a knowledgeable individual who can offer some insgiht into “if this is a good deal” and/or “what can I reasonably expect from this offer.” Also - should i be concerned with any kind of liability?

Any and all information you are willing to divulge is greatly greatly appreciated. I know this is absolutely not your responsibility so I hate to even bother by asking, but I certainly have no idea where to start or who I should be asking .

thank you for your time. - cvs

26

$650/acre is not too bad…depending on the number of acres. 22.5% royalty is what I have been offered at times…I have always held out for 25%…but to each his own.

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27

I would limit the provision for extension for less than 3 years and additionally ask for 25% royalty. I dont know if you will get it but its a start. At least make the effort in negotiation for less time of the extension so you are able to get an additional lease. Thank you for the info.

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I guess it’s time to stir up some interest! I am having trouble finding the actual physical address on the 2 tracts to begin looking more into why the lease wasn’t renewed. I have read quite a bit on some things we should consider when negotiating the next lease. My question is how do we figure out who bought my brothers shares because they don’t seem to remember? Will this person have the families interest in mind.

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Welcome to the forum. If you give the physical location with an abstract number folks can help. Whomever bought the lands from your brothers had to file in the Dawson county courthouse.

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Use courthousedirect or texasfile to access Dawson county records online. There is a fee to view scans of the documents, but a free search of your brother’s name as grantor should show who purchased the minerals, assuming the deed has been recorded.

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