What a wonderful forum! It was so exciting to see the information and sharing on this blog! I've never joined a blog, and it was great to see your forum on just the topic I was looking for!
My family sold land in Neches Texas a few years ago, but maintained the mineral rights. There was no action until the last few months. Now there are two offers. Graem is offering $150.00 per acre plus 1/5 royalty for a 5 year lease. PLG, Inc. is offering $150.00 per acre but 1/6 royalty on a 3 year lease.
On the face of it, it seems like one has to decide which is more important--the term or the royalty percentage. I am helping my mom with this and she did send me the "small print" contract from Graem. This seems to make the term less important, since it says that they are buying the right to minerals "as long as oil, gas or other mineral is produced..."
It seems that many of you are very experienced and do a lot of research. I would love to hear your thoughts on these companies and terms.
My other question is around the situation of owning mineral rights and not the land. How does the drilling (or whatever) affect the people who own the land or who live (rent) the land? In terms of trucks, access, noise and the effects on the land itself. I want to assume the companies are negotiating with the land owners and any renters. Any experience or knowledge around that?
Final question: does anyone have experience with how companies typically work with multiple family members? This might be more of a question for an (expensive) attorney, but my mother was the executor of the will/estate, and handled the sale of the land and the distribution of assets to heirs. Graem asked her for names of all the heirs and she sent them. Now they seem to be communicating with each family group individually. Any experience with that?
I would appreciate any information or experience you have to share. Thank you, A. Cleaver.
Welcome to our forum. Myself and several neighbors around Neches leased for a 3 year peroid with a 2 year renewal option at $150 an acre with a 3/16th or 1/5th royalty. Do not take a lease for 5 years, those leases are old style as are $50 an acre and 1/8th royalty contracts. Leases just north of us toward Frankston and Brushy Creek are going for $200 to $250 an acre with 1/5th royalty. Make sure you do not sign a contract where you sell your minerals instead of leasing them. Mineral ownership has dominance over surface ownership but the land owners can get surface damages as oil companies want to be good neighbors when they come on your property. Each family member has the right to negotiate their own contract when leasing. My family has some leases where 12 siblings and first cousins are involved and we discuss the offers before any of us sign to make sure we are on the same page but I tell the landman that I can't speak for the others. We own land about 3 miles west of Neches and got our lease with Graem in Nov. 2011. What survey is your mineral interest in? Let me know as I probably know someone who alreay has a lease in the same survey. Good luck on your deal.
John
[email protected]
Mr. Cleaver
Be sure to read the following sources for more info on Anderson Co.
Oil and gas buzz in Anderson Co-Eagle Ford forum
Anderson Co mineral mineral rights forum
Drilling activity in Northern Anderson Co.
Bonus Market price-mineral rights
John
Thank you for so much great information. We have our work cut out for us to get up to date on the information out there about mineral rights! This gives us a great start. It's encouraging too, to hear that you have 12 siblings/cousins who work together on the offers. Glad to hear about the oil companies wanting to be good neighbors.
The survey is the George Hanks Survey, A-352.
I'm sure we'll have other questions and information to share as we go along.
Thank you!
Myself and 3 other family members own the Bledsoe survey (640 acres) which joins the Hanks survey on our SW corner. We bought this land in 1969 and were fortunate to get 20% of the minerals then and about 5 years later we were able to buy another 46.66% from the previous owner. He was ederly with no children so again we were lucky. What were the names of your relatives who owned your interest and when did they own it. There is a McDonald family that I know and they have some minerals in the Hanks survey and probably some Carrols and Todds also.
Hello Mr. Cundieff. So amazing to find someone online with interests so close together in Texas! The family name is Lumpkin. I asked my mother when they sold the land itself and she said she would try to look it up. My guess is about 15 years ago.
By the way, I've seen the name Graem often in this forum. Any experience with the other company--PLG, Inc.? This is the other company that made an offer--Petro Land Group, Inc. They actually had a shorter term--a 3 year primary term and 2 year extension option. Again, thank you for all the great information. I would have answered sooner but was involved in some work issues since Friday.
john cundieff said:
Myself and 3 other family members own the Bledsoe survey (640 acres) which joins the Hanks survey on our SW corner. We bought this land in 1969 and were fortunate to get 20% of the minerals then and about 5 years later we were able to buy another 46.66% from the previous owner. He was ederly with no children so again we were lucky. What were the names of your relatives who owned your interest and when did they own it. There is a McDonald family that I know and they have some minerals in the Hanks survey and probably some Carrols and Todds also.
Petro land group leased a lot of land just north of us in 2008 and even called me about about a lease, I told them to bring it on and when no papers arrived for me to sign after a month or two I called them and asked what the hold up was and they said they were waiting for prices to increase on natural gas. This was when gas prices fell from $12 thousand cu ft to $1.90 over a 5 year peroid. They are in Tyler Tx and I think they are a reputable company.
Thank you again Mr. Cundieff. Interesting about the gas prices. Just out of curiosity, any familiarity with the Lumpkin family name in the Neches area?
I saw that name on a previous contact either on An Anderson Co forum or email but I don't remember which. I have a good friend who has lived near Neches all his life(78 years) and I'll check with him. I'll also check at the "round table" at the Neches store. This is a place where you can obtain more news and gossip in an hour than you can absorb in a lifetime.
The "round table" sounds interesting. Much more delightful than the pace out here in LA. :) Let me know if you hear anything. Thanks
Mr. Cleaver,
I've had lunch and coffee with John at the "Round Table". If you ever come to the "round table" have your boots on 'cause it gets 'pretty deep' at times, just saying. Now, you've been warned. lol
Hello John, it's about time for another cup of coffee at the "Round Table" in Neches......
Clint Liles
Yes Clint I'll be needing a "round table" fix pretty soon. We had 5 of my wife's family here for a few days recently and my yougest brother and his ex#2 wll be here today for a couple of days and we are leaving Monday for a trip to west Tex so when things settle down we'll get together. John
John,
I went to Longview early this morning and had coffee with Charles Mallory and some of his buddies. You'll have to join us some morning at Longview. Let me know when you need your Neches coffee fix.
Clint Liles
You mentioned Charles Mallory and I thought of him last week as I was reading a book about TTRC. My daughter knows I like to,read as does her husband and they buy books ocasionally from a used book store and she found this book about the history of TTRC. I would bet Charles has already read it but if not he is welcome to borrow it. Some of was very interesting especially about the slant hole drilling in east Tex because I have known a few people who were engaged in it. But parts of it made my eyes glaze a little bit . The book is"Petroleum Politics and the Texas Railroad Commission" by David Prindle and if you want to read it I'll bring it the next time our paths cross. John
Hello Everyone
I'm new to the Group.
My family is the Barrett Family 5miles West of Neches we were approached by a Graem representative concerning Mineral Leasing we just wanted to know how well this would benefit my family.
Please advise
Cynthia Barrett Dixson
Cynthia ,welcome to our forum. We leased to Graem in Nov 2011 and received $150 and 3/16ths but leases are now going for $200 and up with 1/5th royalty. Our land is about 3 1/2 miles west of Neches. Be sure and read other comments on "Anderson Co Mineral rights Forum, " Bonus Market Price Mineral Rights Forum" and "Drilling in Northern Anderson Co". I track leasing activity in our area so if you don't mind what survey is your interest located? Good luck, John
Mr. Cundieff thank you for the information. We are apart of the Delany WM Survery... we are so very new to this and process. My mother wanted to know if how often do they do a pay off. I'm taking your recomendations to read the Anderson Co Minser rights Forum and Bonus Market Price Mineral Rights Forum and Drilling in Northern Anderson.
Any information is greatly appreciated.....
Leasing agents usually offer a three year lease followed by a two year option lease but the option is the oil company's choice. Never take a 5 year offer for a lease and negotiate the bonus part. And should the oil company exercise the 2 year option, they pay the bonus money again. My experience through the years on our place at Neches and some other much smaller places which I inherited was to refuse the first offer made and every time the landman would increase the bonus money. In 1969 4 family members bought the entire Bledsoe survey (640 acres) and since then, my oldest son and I have bought out my Mom's and my brother's part and just this spring, I sold my two sons my part . They were only 4 and 6 years old when we bought some of this land and they both have good jobs (engineering manager and airline pilot) so there was no way I would sell it on the open market. When we bought the land originally, we got 20% of the minerals and about 5 years later, my brother and I were able to buy an additionally 46.33 % so collectively we have 66.66% of the minerals. I have retained them for now and they are a part of our estate. The Delany survey is about 1 mile SW of the Bledsoe survey so we are neighbors. And I wouldn't complain a bit should they decide to put a noisy drilling rig next to one of my deer stands this fall, and my boys would probably say the same. Good luck on your deal and I'll keep you posted on any new info as I learn it. [email protected]
Thank you Mr. John, I believe we are neighbors. My mother lives in Tyler, so we inherited the land including Minerals rights from my grandparents.
I'm very happy to know there are Great people out there that are will to help with information and resources. My grandfather farmed that land for many years. I have also forward my e-mail address if you come across any information or have any great ideas please feel free in contacting me.
[email protected]