I just received an offer for Section 3, Township 3S, Range 4W in Stephens County. 550 per acre with 3/16 royalty for 3 year lease. Being fairly new at this, is this a good deal? Is there anything happening in that area? I did not know I even had mineral rights until a landman called me up and I went to Stephens County Clerk's office and found I have mineral rights in Stephens County and I have mineral rights in Jackson County. I have read through discussions on this site and the mineral rights 101 and I have talked with others here in Texas, but things are different down here than they are in Oklahoma.
Bearcat and RD Williams have been leasing in the section the last year. Higher level of activity the last 3 months.
I didn't see any permits listed in that or surrounding sections, but there are some 3000' and less wells in 3-4 mile radius. A few completions in the last couple of months in that same outer radius.
RD Williams usually is leasing for XTO in this area and XTO is drilling deeper gas wells.
I'm still new at this game, but I'm guessing a future deep gas well is in the works in that area.
John, Rick knows that area much better than I do, the completions he mentioned could be sec. 16 & 17 3S/4W drilled by Billy Judd on 40 acre units. They pooled for $200-1/8 or $150-3/16. If someone is offering $550 they must be thinking the horizonal drilling thats going pretty strong in 2N/4W and there-a-bouts is moving south. Range 4W looks prettty good so far.
The judicial orders that must be applied for before permitting can take several months and nothing has yet been filed for sec. 3. The only reasons I can see for leasing right now is if you need the money and the possibility they don't drill and the offer is withdrawn. Lease bonus' are running $1000-1500/acre in 2N/4W. It remains to be seen if the trend continues south.
Hey John, I live in Texas too. I've never heard of Holliday have you heard of Alvin?
John, Continental filed to vacate the old spacing in sec. 2 , but then dismissed it. Case #201102968.
Well, you are in the right place as far as forums go and you've done the right thing as far as reading material.
Bearcat Land and RD Williams are the two companies leasing. I would try and get a competing offer from the other one.
Holliday is 6 miles West of Wichita Falls. Yes I have heard of Alvin. Isn't that the home of Nolan Ryan?
Michael Hutchison said:
Hey John, I live in Texas too. I've never heard of Holliday have you heard of Alvin?
Yeah John, Thats about our only claim to fame. He's even got his own brand of beef in the local Kroger.
Guess things heating up! Sec 19 2S 4W, signed lease with Bearcat and have had 1 call last night wanting to lease my small piece. Think it is Continental in that area? THANKS Bruce
Rick Howell said:
Bearcat and RD Williams have been leasing in the section the last year. Higher level of activity the last 3 months.
I didn't see any permits listed in that or surrounding sections, but there are some 3000' and less wells in 3-4 mile radius. A few completions in the last couple of months in that same outer radius.
RD Williams usually is leasing for XTO in this area and XTO is drilling deeper gas wells.
I'm still new at this game, but I'm guessing a future deep gas well is in the works in that area.
thats why grandad said don't sell,,,they come back and dig deeper, I just got a lease from RD Williams for Section 4, T#S, R$W of stephens county..$800.00 an acre...since reading all this forum stuff I am afraid to sign the lease....pooling clause, warranty clauses....all the stuff we are supposed to look to see if its right and I just haven't learned enough. I just always read enough to know I wasn't selling and mailed it back. I never even looked at pooling and spacing until they said theywere going to court to force pool. Argghhhh, I need a mentor! I am going to the OK Convention and dig into everything theycan teach me.
Elizabeth Kirkpatrick said:
Rick Howell said:Bearcat and RD Williams have been leasing in the section the last year. Higher level of activity the last 3 months.
I didn't see any permits listed in that or surrounding sections, but there are some 3000' and less wells in 3-4 mile radius. A few completions in the last couple of months in that same outer radius.
RD Williams usually is leasing for XTO in this area and XTO is drilling deeper gas wells.
I'm still new at this game, but I'm guessing a future deep gas well is in the works in that area.
Elizabeth, Don't let forced pooling scare you, it's not really a bad thing, in fact sometimes you come out better if you are pooled. If you ask them to strike the warranty clause they probably will. A depth clause is a good idea and one can be found on this forum, I'll try to find the one that was posted a few weeks ago. I'll check the OCC website to see if any orders are pending on your section, chances are it is not as urgent as some landmen would have you believe. Follow the general discussions on the Stevens County forum, you can get up to speed pretty quick.
Elizabeth, I think you meant 4-3S/4W if so there are currently no applications posted on the OCC website. If you lease now you will get your bonus regardless of whether they drill or not. If you wait until they actually start the application process the offer will probably go up but in the meantime you run a slight risk that it won't pan out. If you hold out for pooling chances are you will get top dollar. The risk and reward rise accordingly. I don't know about the OK Convention but I would like to hear about it if you go. Good Luck, Mike.
Hi,
Brand new here; trying to sort through some estate settlement things and have come across an old letter from a great aunt that indicated family mineral rights at one time, in Stephens County, also. Out of curiosity, I looked up great grandfather's name on the Texas state unclaimed property site and his name showed up several times and the unclaimed funds were from Stephens County! So, I am wondering how I might find out if there are in fact still family mineral rights there? Can you just go to the courthouse and do a search (I have a brief, legal description of the 305 acres)? So far, there doesn't seem to be a 'Deed' of mineral rights in the papers we are sorting out. Any suggestions on how to track this info down in Stephens County? Thanks
I got a lease offer too....mine is Sec 4 3S 4W ..Stephens...Is your offer with Bear Cat or RD Williams?.. RD is paying 1200 per acre w/ 3/16ths. You may want less bonus and more out of the well but I heard that 3/16 was the highest they were paying...I don't know about Sec. 3 but it is close enough that I would think the bonuses would be higher than 550...someone on here will clear it up for both of us...but as one person told me, don't rush into it and read your lease.
I did call Bear Cat and told them RD was paying more and they offered more then went back to RD and told them Bear Cat upped the ante and then RD went up to 1200...so I haven't sent it in yet because at the last minute I realized I had not put in a clause for no top lease or extensions on the lease so will send me a new one next week....should I sign or hold out? this is for Sec. 4 3S 4W Stehens
Matthew said:
Well, you are in the right place as far as forums go and you've done the right thing as far as reading material.
Bearcat Land and RD Williams are the two companies leasing. I would try and get a competing offer from the other one.
Elizabeth, glad to hear you have two companies bidding against each other for a lease. Exactly what you want.
Its up to you on whether to sign the lease or not, but it sounds like you are getting at least a higher dollar and higher royalty than initial offer. If you get other favorable terms in the lease, it might be time to sign.
Paula,
The land records are at the Courthouse and you could find the ownership from your great aunt there. Depending on how long ago she got her mineral rights, they may be avaialble online. Otherwise, you will have to go to the Courthouse or pay someone to go.
Email me offline [email protected] if you want more specifics.
Thanks, that was a helpful suggestion. I checked out the website and then got on the phone with the Clerk there. It looks like a road trip is in order to sort through this!
Does anyone know if they have commenced any operations on 3-3S-4W?