We are relatively new finding out we owned mineral rights in Loving County, Texas Block C25, Section 10.
Does anyone have any info what the going rate is for a lease bonus and also selling price. We are not sure which way we are leaning.
Thanks in advance for any information.
We did our lease several years ago, but it was worthwhile going through an oil rights attorney that knows the areas. I believe others on this listserv can give you guidance on recent values. My advice to you is to take your time and do your homework. It can mean thousands of dollars to you. That said, oil prices have been down so the royalties dropped below what they were are few years ago.
You should definitely hire an attorney before selling or leasing your minerals-- particularly in an area like Loving County. Most oil and gas lawyers have standard leases used for landowners. It doesn’t cost much to hire someone to negotiate a lease with an oil company.
For a lease, you should have a 1/4 royalty. At the very least, you should have horizontal and vertical Pugh clauses. These clauses will make the lease expire as to unproductive acreage and zones, allowing you to lease the property again in a few years. There are a lot of other clauses that are typically added to oil and gas leases. The lease forms oil companies send you are driller-friendly.
You shouldn’t sell your minerals unless you absolutely need the money-- particularly when the price of oil is low. If you really want to sell it, wait for oil to get back to $60 or 80 per barrel and you’ll make a lot more money. I looked at your property on the Railroad Commission’s GIS map and you’re in a very good area. There are two cancelled horizontal permits on your property, but you’re near a lot of horizontal wells. Because your land is undeveloped, it’s got future potential.
Thank you for the info. Do you have any resources for a legit attorney that I know will handle the situation in our best interest?
You can observe qualified professionals (often with localized expertise) who provide services to mineral owners right here on The Mineral Rights Forum. You will notice them in 3 different instances on the site:
in display images and/or brief text messaging on site
in our Mineral Service Provider Directory in the main navigation above.
as a Business Member participating in many conversations throughout the site (note the blue colored “B” on their picture and blue text on their posts).
These practitioners are often able to provide the specific (and often localized) services that meet your needs.
The Mineral Rights Forum Administration
RL -
Please see the links below. I took a quick look at the currently producing wells around Section 10 and agree with the others that you should consult an experienced Oil and Gas Attorney before making any decisions.
Hope this helps!
SEC 10, BLK C25 - MAP.pdf (81.8 KB)
This topic was automatically closed after 90 days. New replies are no longer allowed.