I have received a Mineral Lease offer from Comstock. This new to me. All that has been communicated from Comstock is: is a lease proposal stating, your prop is within the survey, your offer is “x” amount royalty, at “x” amount per NMA for a 3+2 lease, please sign and return. This is a pool of property owners, and doesnt seem to be a large amount of money, so I am not considering attorney involvement. Where do I start ?
Personally, do not agree to the extra two year option. Ask for a higher royalty and ask for a higher bonus. First offers tend to be lowball. Not getting an attorney can cost you royalties in the long run. If you only have a tiny bit of acreage, then you may not want one, but significant acreage would be important. Do you understand every word in the contract you are about to sign? If you only have an offer letter, I do not sign them. I want the actual draft lease in my hands and want to understand every clause and its ramifications for the next 50 years. Also, do not hand over a signed lease without getting paid that day.
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Thank you for the reply. Where can I find a map of the well ? Landman says no name or # has been given, I only have (2) survey I.D.'s
If they are at the leasing state, there is probably not a well name yet (or one that is public). If you have the block, abstract and section, we can show you where you are located on a map.
A-163 A-539 Leon County
Very interesting. My family has interest with 6 wells in A-163 but we haven’t received anything. The wells we currently have there are smaller vertical wells that are at the end of their life. We are currently with another drilling company with them. Would be interesting to find out more of where Comstock is planning to run a future rig. We have interest with Comstock in Leon county in another abstract as well.
https://gis.rrc.texas.gov/GISViewer/ A-163
A-539 Comstock just completed two wells in 539. Hogue MMP 1H gas well and Powell BD 1!H First production in late Dec 2024.
Oops! Just read this posting of yours which said, “do not hand over a signed lease without getting paid that day”. I and my brothers just signed over a lease in substantial mineral rights, to explore on the promise of an offer letter which seemed legit and substantial as there has been very little interest in our sections in Crockett Co. Now we’re sweating out whether or not we’ll get the bonus payments offered and the time limit for their response is running out. What to do if…?
Welcome to the forum. Some brokers work for the operators and you will get paid close to when they say they will pay. Others are flippers and may file your lease before they pay you so that they can then flip the lease (usually to their benefit, not yours). If they don’t find a buyer quickly, that is when they may not pay on time and getting a filed lease back out of the courthouse due to lack of payment can be difficult. It is much safer to have your signed lease held by a third party such as a banker, attorney or accountant. They will turn over the lease when the payment is made, so that the lease cannot be filed without payment. It does take time to run the title, so that is what is supposed to be happening in the “in between time”.
That is so reassuring what you wrote. It all seemed on the up and up, he had us forward the signed lease to the principle and a copy to him. I looked up the principle who is a very large private equity firm established in 2017 hdq in Dallas, then got a glimpse of their holdings all around our property so that made me/us feel more secure. Still, I feel like we sailed into unchartered waters. It appears he’s a broker for their accumulations in and around the county where our land is. I’ll let you know how it turns out.