We’ve been offered a 3 year lease at $8,000 NMA on in Section 65, Block 1, Lot 44 W&WN RR, Loving County, TX, 2.5 Acres = $6,666 for .83 NMA. Royalty: 1/4th (25%)
That bonus doesn’t sound unreasonable to me.
There isn’t any drilling near you currently, but most sections in Block 1 have older horizontal wells. You’d assume somebody would try to drill 2 mile laterals up the middle of Sec 65 (along with either Sec 64 or 66) at some point.
I’m not that into lawyers myself for something this small, but other’s may know better. Good luck.
Sorry for the delay replying to you. Turns out it isn’t possible to just reply to an e-mail. Here is what I wrote: As far as I know, you are correct. When we first started out, there were some wells that were spuded, but I don’t know if they ever produced.
We got the lawyer because we were heirs of one of a group of men that bought the mineral rights in 1921. In my case it was a Step Great Grandfather whom I never met (neither had my father). We knew about the land and the oil rights but were told that they were likely “useless” because “they couldn’t get the oil out of the ground.” Then around 10 years ago, landmen from that area tracked us down and offered us ridiculously low amounts of money for the lease and royalties.
In the end, we had 6 heirs for a portion of a portion of a plot of joint parcels of one pool of oil. My cousin and I did a lot of homework. He is an attorney himself, but did not feel competent to deal with the details of Texas oil law. I even spent time talking to Apache Oil that owns the drilling rights. Now that my brother has died, I’m trying to go through all of the paperwork to distribute his share to his siblings.
After the lease and suspended funds were released, which was a nice bit of money. I think our share was around $12,000 (for only our family) and the royalties held in suspense (I don’t recall how much that was), I personally have been receiving $100-200 per month, depending on oil prices. But they are also paying us for gas, sulfur, something called “plants” and other things. Whether we would get those little bits without a lease written by a lawyer, I couldn’t say.
People on the forum were very helpful in educating me about reasonable leases were going for in that area.
I personally would not jump on the first offer I received without checking to see what others have gotten for the same area (it varies widely in Loving, Co).
I hope this helps.
Good luck!
Jean
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