I own a 1/3 interest in 132 acres across the road east from Dornick Hill Golf course. Had a call from XTO offering $650/acre, 3 year lease 3/16 royalty. Anybody know if this is a top offer?
There are a few things that should be in the lease.
One is a GROSS PROCEEES CLAUSE vs a NEW PROCEEDS CLAUSE. The later is in favor of the oil company charging the mineral owners for processing, marketing, dehydrating, comprssiion, etc. at the well. This is to say they are deducting all these production cost from your royalty check.
Another clause that should be in the lease is a DEPTH CLAUSE. Under this clause unproductive ZONES (formations) must be released back to the mineral onwer if drilling or exploration does not occur by a specified time. In or words you could lease these formations to another company.
If they found you, then your deed is probably in order, but others may have issues with there deeds and can hold up things up.
Jim,
Could you include the section, township and range?
Are you in Section 7 4S 2E
Dan, thanks for your reply. We are at our son’s in San Jose and don’t have access to the legal description here. Have asked Laura Williams one of the owners in Ardmore to reply for me.
I hope it is cooler up there than it is down here in Irvine, CA
Does anyone know the address for the XTO office in Ardmore?