My family and I own over half a section of land and all the mineral rights on a property in the Northeast part of Mitchell County, near Scurry County and the Thunder Valley wells. We are currently entertaining a lease offer. I wonder if any neighbors could share recommendations for what items we need to make sure are included in the lease. Thanks!
It would be wise to get a good oil and gas attorney involved as the wording of a mineral lease and a surface use agreement must be done with great care. Take friendly advice from friends and neighbors, but get good legal help before signing. Taking a look at the oil and gas leases from UT and TAMU to get an idea of what is usually included, but don’t write that lease yourself.
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I leased to 3 Span in 03/2020 for 3 yr, 1/4, $1000/ac. I was also in discussion with Carr Res, but they would not go up in bonus and were hesitant on some of the OGL terms. 3 Span has been progressing slowly, but has made some good wells. It also looks like they have encountered a few problems, which is to be expected. Carr has not been as active. I have not recently checked out the leasing activity for the area.
Are you in Mitchell County or Scurry? We leased to Laredo last go round , but they never drilled on our acreage.
We are in the northeast part of Mitchell County.
hi there, there are 3 things that we look for
25% 3 yr lease no working interest
we have never used an oil and gas attorney to get a good lease, look at it as an oil and gas garage sale, sometimes you can get better that what is available by negotiating. As someone has mentioned to me, you only get a No, if you don’t ask.
sometimes it works but you never know until you ask
If you are inexperienced you should definitely use a mineral advisor. You should have a “lease exhibit” to protect you that covers commenced drilling, depth clause, Pugh clause, shut-in royalty, and release.
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