Lease Offers in Terry County, TX

Texas Mineral Rights Terry County, TX
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Use this post to share your lease rates (bonus, royalty, primary term), so we all know if we're getting a fair deal.

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$350 per acre for 20 acres and a 20% royalty

http://www.mineralrightsforum.com/forum/topics/terry-county-texas-lease-bonus?xg_source=activity

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Just received an offer for a 20% royalty and a $350/acre bonus in Terry Texas. I have 20 acres of a 640 acre parcel of land. I’d like to get a 25% royalty and at least $500 per acre, if not more. Has anyone had experience negotiating in this county recently? Does the fact that I only have 20 acres and 90% of the plot is already leased reduce my leverage here?

4

we received $500 bonus, 25% royalty, 3 yrs in Terry County for a couple hundred acres. Hope this helps

5

Any updates on activity in the area?

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Doug Smith said:

we received $500 bonus, 25% royalty, 3 yrs in Terry County for a couple hundred acres. Hope this helps
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As regards to the $500/A, 25% royalty, and three yr lease, can you give a location? Or at least what quadrant of the county??

Thanking you in advance for a reply.

Shelby Bzeman

San Angelo, Texas

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I am new to this forum. I just received an offer for $350 per acre for 3 year and a 1/5 royalty. This is in Terry county. What I have is per them is 480 gross acres x1/24th fractional interest. My paperwork says I have UD 1/6 interest in UD 1/4 interest and it lists a particular block. This is very confusing since I am unclear on what this all means.

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Nancy,

You claim you have UD 1/6 of an UD 1/4 which would equal an UD 1/24 of the total. You own 1/6 of a 1/4 of a piece of a pie. Take a pie and divide it in quarters, then slice each quarter into 6 pieces. If you did the same to each quarter of the pie, there would be 24 pieces in total. Your portion of the pie would be 1/24. Did this help? Also, the 20% royality sounds low to me. I would try getting closer to 25%.

Nancy, can you tell me where in Terry county your property is located? At least what quadrant of the county.

Shelby
Nancy Mickey said:

I am new to this forum. I just received an offer for $350 per acre for 3 year and a 1/5 royalty. This is in Terry county. What I have is per them is 480 gross acres x1/24th fractional interest. My paperwork says I have UD 1/6 interest in UD 1/4 interest and it lists a particular block. This is very confusing since I am unclear on what this all means.
10

I was offered a 3yr +2 , 23% royalty at $400.00 per acre at 10 acres , one sixteen % interest I dont know if I will take it or not , Iam looking for another oil company , the rest of my family took the money and signed on the line without much concern.

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Hello Mark…could you please tell me where your property is located, or at least what quadrant of the county your located…Shelby

mark r delaneo said:

I was offered a 3yr +2 , 23% royalty at $400.00 per acre at 10 acres , one sixteen % interest I dont know if I will take it or not , Iam looking for another oil company , the rest of my family took the money and signed on the line without much concern.
12

sure its the west half of the west half of section 62 block 4x

Hope that helps.

mark

(the east side of brownfield south of the e to w hiwy)

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Thanks for the reply Mark…I have an UD 1/2 interest in 160 A. due S. of you about 6-7 miles. I passed on an offer of $150 for 5 yr and 20% back several months ago…I keep hearing now $350-400 and 23% makes me feel good about the pass…Shelby

mark r delaneo said:

sure its the west half of the west half of section 62 block 4x

Hope that helps.

mark

(the east side of brownfield south of the e to w hiwy)

14

I have received offers from Ramsey Petroleum and Double Eagle Development both from Midland. Anyone used them before on leases in Terry County?

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Nancy , my family and I have signed a contract with Scott ramsey , it was for $400.00 per mineral acre , we have a combined area of 80 acres , a royality pmt of 23% for 3 yrs with a option to renew for 2 yrs , Iam told thats about the going rate , our land is the west half of the west half section 62 block 4x ,I found him courtious and helpful if you need to know more you can call me at 918 691 3397 tulsa ok time.

Hope this helps

Mark

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Did you sign a pugh clause with the standard lease agreement? I am still negotiating but getting closer.



mark r delaneo said:

Nancy , my family and I have signed a contract with Scott ramsey , it was for $400.00 per mineral acre , we have a combined area of 80 acres , a royality pmt of 23% for 3 yrs with a option to renew for 2 yrs , Iam told thats about the going rate , our land is the west half of the west half section 62 block 4x ,I found him courtious and helpful if you need to know more you can call me at 918 691 3397 tulsa ok time.

Hope this helps

Mark

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Our attorney didnt mention anything about a pugh clause , what is it?

Thanks

Mark

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Here is a website i found on pugh clause that may help. http://www.rossandrosslaw.com/pugh_clause

If you have a Pugh clause, the clause will provide that only the portion of the land in a unit pool is held so that you are free to lease out the remaining land to another company so that you can earn money from the land.

I am working with my cousins on pooling ours together so it would be a total of approx. 92 acres.

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Thank You

Mark

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Has anyone heard anything about drilling in Terry County around the Rich Lake area northeast of Brownfield? I have been contacted by a company called Threshold who says they are working for Shell Oil Company. If I am going to lease anyone my land, near Rich Lake, if given a choice, I'd prefer to lease to someone who is actually going to drill on the land. I was offered $350 plus 20% royalty for 10 acreas.