We have been offered $1,602 for 3 years at 1/4 royalty. What are the going rates and what are the lease clauses to watch for?
Thank you
KP - need more information on location... i.e., Survey, Block, Abstract Number.
E.g., "H&GN BLK 13, SEC 150 A-2516". Sometime Township # may be applicable too. Later -- Buzz
240 acres in Block 58
KP – I believe we have you located: PSL BLK 58 SEC 20 is ~10.9 miles NNE of Toyah. The 3-year term is reasonable and the 25% royalty is becoming standard in the area. Sorry, not qualified to comment on the bonus but I might add that there has not been a lot of drilling activity close-in to your section recently. Later -- Buzz
Thank you,
Another general questions.
There are multiple parties that own this land. Do all of the parties have to sign the same terms or can some sign and some not sign?
KP not being an attorney... I would say there would be one 'set' of lease terms but all parties would not have to sign... that makes it more difficult to get a well(s) drilled and that's the ultimate goal. Later -- Buzz
Thank you
I have recently recieved an offer of $1,500 per acre for lease on Sec. 34, Blk. 58 PSL. This came after a first offer of $1,000. Is this the going rate for this area? this has been sitting w/o lease since 2009, so I feel that it is reasonable. Does anyone know of any drilling activity in this area - about 8 or 10 miles NW Toyah?
Thomas – I have your Section 34 spotted 7.9 miles NNW of Toyah, A-4387, I believe. Petro-Hunt/Chesapeake (now Shell) has you surrounded with deep Woodford Shale horizontal gas wells drilled prior to late 2008 when natgas prices cratered. Might CHK have had your lease that expired?
In early 2012 Energen drilled a horizontal well, the COTTONMOUTH 58-47 #1, A-1530, 1-1/2 SSE of you in Section 47. The well was completed by Petrohawk/BHP in a joint venture with Energen. Early reports by Energen on the completion were that the lateral was compromised.
$2,000/ac bonus is interesting, IMO. Let us hear who the suitor might be? Later -- Buzz
Our family owns surface in Block 58 Sections 15 and 16 Public School Land in Reeves County, Texas. Since this is PSL land we are agents for the State of Texas in the mineral rights. Anthem Oil sent an offer to purchase the mineral rights in July for $1000.00 per acre. We just received another offer for purchase for the amount of $2200.00 per acre. My question is this: If we were to sell, would it be the surface along with 1/2 of the mineral rights and the State getting the other 1/2? Also, these two sections are currently leased to BHP/Petrohawk, so can these sections be sold?? Are they on a "fishing expedition" to see how cheap they could get the land for?? Also am I correct in thinking we could sell our share regardless of what the rest of the family would do??
Thanks for any info,
Ken and Marie Haag
Beware of land grabbers from the unsuspecting, is my advice! $1,500+ is becoming pretty standard in many areas that were previously not in demand. A three year lease, not a sale of property!!!
Honestly, If you sell your rights, you are going to be kicking yourself silly later. Petrohawk has our section 14 of the same block.
Wade,
At this point in time we have no interest in selling. In a few years, due to advancing age, we may think of selling if the price were high enough to make it worth while. However, we would be interested in selling all of the tanks etc. that were left on the land from the previous gas well that the past company left. We were surprised the company wasn't required to remove all of their equipment from the land when closing up the gas well.
If I may ask, what year did you sign your lease with BHP??
Marie Haag
Wade Meeker said:
Honestly, If you sell your rights, you are going to be kicking yourself silly later. Petrohawk has our section 14 of the same block.
I have to check the files at the office for the exact date. Also, if you notify the RRC that they never cleaned up the property they will fine them and penalize them. Did they plug the well or does it still have an old well head on it?
My section is 19, block 7 H & TC Ry. Co Survey.
I was last paid $250/NMA with 3/16 royalty.
Your offer sounds good compared to mine. What company do you go with?
Susan - do you have the Abstract Number? Also, when did you lease? TIA -- Later -- Buzz
Kenneth,
we leased PSL 58 sec 14 to Petrohawk/BHP 1/25/2011. Was a 3 year primary with 2 year option, 1/4 royalty, no costs. too many other details in the lease to type at this time.
not sure if Susan's question was directed at me but we tend to see who all is producing in the area, keep our ears and eyes open and then negotiate as best as we can to those that will pay the most and will actually drill. bonus is great but the end game is to get a well drilled. i always tell them I'll lease it but we just have to come to terms. don't hold out for too much, because at some point, they'll just go somewhere else. Look what happened in the Barnett...
I was informed that my two year extension was previously a contract when I signed my three year lease with an optional to renew. I will get $250 nma for 2 year option.
When the two years is up (Nov 30, 2015) I plan on doing research as this $250 acre sounds too low.
I want to try again to study the tutorial on how to locate the property and see what is going on.
There are pipelines going in the area but not through my property.
Also, how do you find the abstract number?
Susan -- it is on your tax statement.
For the life of me, I cannot find your description in Reeves County: "My section is 19, block 7 H & TC Ry. Co Survey". The only H & TC Ry.co. Survey I can find is BLK 1 on the Reeves/Pecos County line.
What company renewed your lease?
With more information, I will help locate your property. Later -- Buzz