For what it's worth, my sister and I were recently approached by a fellow named Cliff Williams, an O&G attorney who together with an "engineer" (no name mentioned) is apparently interested in reworking old wells. His interest was in our tract:
"Mineral Interest BEING all of Block No. 171, of the John H. Belcher Subdivision of the Jose Olibarri Survey, Abstract 579, according to the recorded plat thereof, of record in Volume 9, Pages 638 and 639 of the Deed Records of Montague County, Texas."
The tract (160 net mineral acres) was originally leased in the early 1990's without a Pugh clause, and as a result was "held by production" of a single, low-production well until 2011. We finally got a release last year, after we requested the lessee to drill further wells or release everything except the single well. Since it was meanwhile non-productive, we got a complete release. After something over 25 years ;-(
At any rate, we were asked for our ideas regarding lease conditions and terms. We replied that "We do have specific ideas as to lease terms and wording - in particular, we would hesitate to sign a lease for this interest without a Pugh Clause/Freestone Rider, a rider specifying responsibility for any surface damage, wording excluding participation of the owner in production costs. We also are averse to any shut-in royalty clauses."
And as to terms, we noted that our "understanding is that a bonus of $ 800/ac and 20% royalty is presently being offered in Montague for a three-year primary term."
At that point, Mr. Williams thanked us and declared that our price was doubtless justified, but beyond his means, and also noted that the unplugged single well on the tract (which still remains to be plugged by the previous lessee) was a liability he didn't want to accept. No counter-offer was made.
The previous lessee assured us that he was willing and able to plug the well, and was willing to give us an indemnification that the well would be plugged at his cost.
So we are still waiting and interested in seeing how things develop in Montague County. There are already 3-4 old (plugged) wells on the tract, and we would be surprised if no further oil/gas could be obtained. given the willingness to drill new wells. At present, the L.E. Jones Production Company of Duncan, OK has an exclusive seismic permit for the tract until the end of February, 2013, but we have the contractual right to interpreted results of the geophysical operations (without cost or other encumbrance) for the benefit of prospective lessees.