I would like to open a discussion on Leasing and/or Sale of Minerals in Love County. If you have not heard, there is a lot of oil and gas activity happening in Love County. Big Rigs are there now and going deep for the Natural Gas Deposit around Marietta, also Oil deposit. Our family leased two years ago with $500 acre bonus. I have heard less offers but it sounds like there may be bigger bonus in the future. We are getting many Letters to outright buy the minerals with offers from $1600 t0 $2500 mineral acre. All this adds up to one thing, it has just now started and there may be more to come. Please join this discussion on your offers on offers to buy and offers to lease. The more discussions we have on these subjects will help all of us to keep informed on the current going rates for both.
Love County first offer: $500 per acre, 3 yr primary term, 18.75 royalty, 2 yr extension with $500 per acre bonus paid again.
Negotiations just commencing. Offer rejected because royalty interest is way too low. Have walked away from several lease offers in OK because royalty is unacceptably low. RD Williams represents XTO, and are as obstinate as any I've ever encountered. So be it, if they won't budge on their royalty terms, then they have no lease, period.
Regarding the sale of minerals, I cannot think of any reason anyone should ever sell their minerals, although I do recognize that companies have the right to make offers and mineral owners have the right to sell.
I'd greatly appreciate any information on any and all activity in Love County, especially
Section 34 Township 6S Range 1W
Section 26 Township 6S Range 2E
Section 29 Township 6S Range 2E
Thanks, and best of luck with all lease proposals! It can be tedious, time consuming work, but well worth all the necessary research as well assistance one can get.
Comment by Rick Tatum on Monday Delete Comment Well it seems I went low on the bonus. That is good news about all the land men at the courthouse. I emailed Lowry back about our other interests in 19+30, 6S, 2W and 23, 6S, 1E and they said they were interested. That was last week. We’ll see how the turns out. I wonder if they’ll be interested in both? And thanks Shania.
Comment by Rick Tatum on February 7, 2013 at 4:13pm Delete Comment Little update on lease offer on 21, 6S, 1E. Got a call from Lowry Land and they upped the bonus to $400/acre.
Ron, sound like you are having same problems as other have. Hang in there as , since the activity has increased in the year I believe you have better chance to work a better lease.
Ron Hicks said:
Love County first offer: $500 per acre, 3 yr primary term, 18.75 royalty, 2 yr extension with $500 per acre bonus paid again.
Negotiations just commencing. Offer rejected because royalty interest is way too low. Have walked away from several lease offers in OK because royalty is unacceptably low. RD Williams represents XTO, and are as obstinate as any I've ever encountered. So be it, if they won't budge on their royalty terms, then they have no lease, period.
Regarding the sale of minerals, I cannot think of any reason anyone should ever sell their minerals, although I do recognize that companies have the right to make offers and mineral owners have the right to sell.
I'd greatly appreciate any information on any and all activity in Love County, especially
Section 34 Township 6S Range 1W
Section 26 Township 6S Range 2E
Section 29 Township 6S Range 2E
Thanks, and best of luck with all lease proposals! It can be tedious, time consuming work, but well worth all the necessary research as well assistance one can get.
Our minerals are in 22 and 15 and all is leased at the present time.
I inherited half of my father's share of the mineral rights last year. We were contacted by RD Davis and executed a lease at $500 per acre and 3/16 for three years. They indicated that there would be drilling and that they were not just doing the lease for speculation. This is all very new to me. The mineral rights have been in our family for a long time but there had never been any drilling activity to my knowledge. My dad never really explained what this was about. The land is in Section 19, Township 6 South, Range 1 West. I'm a long ways away from Love County. How is the best way to stay up on what is going on? Any help or suggestions will be appreciated.
Thanks Terry, I was just informed that my counter offer has been refused as they simply cannot pay a 25% royalty, nor will they negotiate beyond their original offer of 18.75% royalty. No problem, apparently, bumping up the bonus lease consideration money from $500 to $750 but they will not budge on that royalty amount. R. D. Williams is representing XTO, which is Exxon, and Exxon recently announced that they are spending $190 billion in research, development, etc. over they next 5 years, yet they cannot afford to pay the owners of the minerals any more than 3/16ths royalty (in this case). It is utterly absurd and laughable, and I end up spending a lot of time, energy, and effort getting them all information they need, seemingly for naught. It is the shameful side of this industry. I was just reading an article that stated that when oil is at $50 a barrel, profits are still quite good, but when oil is selling above $80, and even better above $90, the profits are truly soaring. People need to remember, in my opinion, that as mineral owners, we OWN the oil and gas below the surface, and we are granting the oil and gas companies the right to mine and produce these minerals and they want to pay us what I consider a mere pittance.
Terry A Walker said:
Ron, sound like you are having same problems as other have. Hang in there as , since the activity has increased in the year I believe you have better chance to work a better lease.
Ron Hicks said:
Love County first offer: $500 per acre, 3 yr primary term, 18.75 royalty, 2 yr extension with $500 per acre bonus paid again.
Negotiations just commencing. Offer rejected because royalty interest is way too low. Have walked away from several lease offers in OK because royalty is unacceptably low. RD Williams represents XTO, and are as obstinate as any I've ever encountered. So be it, if they won't budge on their royalty terms, then they have no lease, period.
Regarding the sale of minerals, I cannot think of any reason anyone should ever sell their minerals, although I do recognize that companies have the right to make offers and mineral owners have the right to sell.
I'd greatly appreciate any information on any and all activity in Love County, especially
Section 34 Township 6S Range 1W
Section 26 Township 6S Range 2E
Section 29 Township 6S Range 2E
Thanks, and best of luck with all lease proposals! It can be tedious, time consuming work, but well worth all the necessary research as well assistance one can get.
Ron,
I agree with you 100%. That's the reason I haven't leased to Anschutz or Cabot. They want to pay the mineral owners chicken feed and it ain't gonna happen with me either. That oil and gas under my ranch is mine and they will pay for it sooner or later. Shame on these greedy Basxxxxs.
Clint Liles
Ron Hicks said:
Thanks Terry, I was just informed that my counter offer has been refused as they simply cannot pay a 25% royalty, nor will they negotiate beyond their original offer of 18.75% royalty. No problem, apparently, bumping up the bonus lease consideration money from $500 to $750 but they will not budge on that royalty amount. R. D. Williams is representing XTO, which is Exxon, and Exxon recently announced that they are spending $190 billion in research, development, etc. over they next 5 years, yet they cannot afford to pay the owners of the minerals any more than 3/16ths royalty (in this case). It is utterly absurd and laughable, and I end up spending a lot of time, energy, and effort getting them all information they need, seemingly for naught. It is the shameful side of this industry. I was just reading an article that stated that when oil is at $50 a barrel, profits are still quite good, but when oil is selling above $80, and even better above $90, the profits are truly soaring. People need to remember, in my opinion, that as mineral owners, we OWN the oil and gas below the surface, and we are granting the oil and gas companies the right to mine and produce these minerals and they want to pay us what I consider a mere pittance.
Terry A Walker said:Ron, sound like you are having same problems as other have. Hang in there as , since the activity has increased in the year I believe you have better chance to work a better lease.
Ron Hicks said:
Love County first offer: $500 per acre, 3 yr primary term, 18.75 royalty, 2 yr extension with $500 per acre bonus paid again.
Negotiations just commencing. Offer rejected because royalty interest is way too low. Have walked away from several lease offers in OK because royalty is unacceptably low. RD Williams represents XTO, and are as obstinate as any I've ever encountered. So be it, if they won't budge on their royalty terms, then they have no lease, period.
Regarding the sale of minerals, I cannot think of any reason anyone should ever sell their minerals, although I do recognize that companies have the right to make offers and mineral owners have the right to sell.
I'd greatly appreciate any information on any and all activity in Love County, especially
Section 34 Township 6S Range 1W
Section 26 Township 6S Range 2E
Section 29 Township 6S Range 2E
Thanks, and best of luck with all lease proposals! It can be tedious, time consuming work, but well worth all the necessary research as well assistance one can get.
I was offered $600 per net mineral acre for Oil and Gas Lease providing for a 5 yr term and 3/16ths royality for 80 acres
Section 23 Township 7S Range 1E
What seems to be going on in that area. As this is first offer it sounds like they are serious. Offer from Heller Oil, Inc out of Ardmore. Anyone else working this area?
Offers to purchase in 7S keep escalating. New offer of $4500/acre. Now that Cathey 1-8H is completing. It sounds like it must be a good well
I have been talking with Hellar Oil Inc and RD Williams and a guy named Kevin Foster. Any thoughts on these companys. Ron Hicks I totally no what your talking about with RD Williams there hard work with and dont like to be called out on lease prices and lies.