Oil & gas discussion group for those interested in Lynn County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
We have leasing offers on various tracts around Lynn Co., and I'm hoping someone could assist me with the following:
1) highest bonus/nma paid in 2011 in Lynn Co.
2) any details to verify new wells I've heard hit oil: some vertical wells west of O'Donnell, and one on Lynn/Garza co. line on Double U Ranch (rumor of 700 barrels/day).
Many thanks!
PJ
We, too, have a lease offer on a 320-gross-acre block. Don’t know what percentage of the minerals we have in the block. Have the block information but would have to go to Tahoka to look it up. Know anybody who would do that for a fee? Landman won’t tell us what producing company is involved. Talked with him today and he said company is drilling “test wells” in the area. Would the RRC have record of drilling tests in Lynn County?
Sorry for the delayed response - I've been at NARO convention in Austin and then on vacation.
I spent almost 2 hours at the RR Cmsn. last week - first time there - and they were very helpful. They printed out a list of all new drilling permits approved since Jan. 1: eight total. Unfortunately the companies don't seem to be particularly speedy in sharing their results until required to.
You might check with Lynn County Abstract & Title about doing the research for you - 1540 Avenue J, Tahoka, TX 79373, 806-561-4067. I've spent hours up there and they're great - but don't know if they offer this service or not. If not, they could probably recommend someone. They'll need the physical description of the block - survey name, block, section number. Good luck!
Oh yes - operators for the 8 drilling permits are: RAW Oil & Gas (4), Shenandoah Petroleum Corp. (2), Great Western Drilling Co., WMS Oil Company.
Thanks, Paige. Knew about RAW O&F and WMS. I have done some research on Lynn County leasing and have some stuff but it is too long to put here. Have a transcript of a radio news spot that talks about big leasing to-do in Lynn and Terry Counties. Published in February. Can email it to you if you email me. Hope this doesn’t violate MRF rules. If so, can attempt to put the story in an open message on this page.
Just wanted to let everyone know that I am an attorney in Tahoka and would be happy to negotiate leases and/or examine title to your interests in Lynn or Terry counties. I can be reached at 806-559-2426. Thanks.
Here's an update for those not living in Lynn County. I was there this week, and activity has picked back up. After the frenzy last winter, things calmed down a little - but the title office and county clerk's office are overflowing again with landmen doing research. After no new inquiries for 3 months about leasing our mineral interests, I've had 5 new ones the last 10 days. I also saw a new pad being cleared for a new rig on FM 213, just a few miles west of US 87 (Tahoka-O'Donnell hwy.), and a new rig barely north of O'Donnell just west of the hwy.
I went to O’Donnell last week for the Homecoming festivities and noticed the rig on FM 213 and a couple of rigs just west of town. I have mineral rights slightly NW of town near the Wells community and also in the New Lynn area, but have not been contacted. The minerals were conveyed to me when I lived in Pecos, TX and now, like so many other people, I do not have a telephone land line. I now live in Lubbock and my phone number is (806)786-3684 and email address is [email protected] . I would like contact information to get in touch with any of the landmen.
Any updates on activity in Lynn County? My cousin just contacted me regarding an offer he was given for our shares. Was wondering what the going offer is.
Latest I've heard is $400 or $450, 3/2 or 3/3, and 23-25% royalties, depending on the company leasing, location, amount of acres, etc. We're still in negotiation with several. Leasing was hot a year ago, through the winter, then cooled off in the summer, and picked back up late August with 'the big guys' there now. Offers up from $150-$250 early in the year.
Reported to me last week: most drilling still is west/northwest of O'Donnell, hitting 75-80% of vertical wells drilled there. One dry hole at West Point, but moved the rig about 1 1/4 mi. east of the old gin, so haven't given up on that area. One dry hole close to Story Lake, close to Lynn/Garza county line.
Chesapeake, Devon, Shell, and Petrohawk are currently buying leases in the area.
For those of us who have mineral rights, but have not been contacted, how do we contact the leasing companies or their respective landmen? Would like specific companies or their landmen contact information.
Mr. Copeland, in our case our Tahoka attorney, Calloway Huffaker, is now negotiating contract terms with the oil companies' attorneys directly, and the landmen are out of the picture. My experience was that the landmen were the early ones in, trying to procure 'cheap' leases for their clients (the big oil operators), without the mineral owners knowing who the big client is...or acquiring leases and then selling them to big operators. Once they reach a certain acreage goal, or the big operator becomes known, then the landmen move on to 'fresh pastures'. Most all those interested in leasing contact Calloway because he knows who has acreage they're willing to lease. You might contact him about representing your interests - (806) 998-4863.
Another option would be to contact the Lease Acquisition department of the oil company and have your info ready - county, survey name, Abstract number, block number, section number, # of acres, % ownership. Best of luck!
My family was notified of a small % of mineral rites in Lynn county. We were contacted and sent a lease agreement. We all signed and sent it back. If a well is drilled, have we already agreed to a % or royalty's thru this contract?
Thanks, Dave
Thanks for the good info, Paige!
Thanks Paige, Now another question. Do the oil companies or whoever search out mineral right ownership when the land is first leased or after they have explored the property and decided to drill? I ask this because the property was leased over a year ago and we first received notification 3 months ago. I just want to understand the process.
Dave
First, please know that I'm no expert! I'm just a mineral owner that's been going through this the past year and learning as fast as I can - so what I post is based on my own experience, or what I've read, or heard at the NARO convention. I was in your shoes this time last year - I knew zilch, and quickly learned it is a lot more complex than I dreamed!
My understanding is that the geologists determine the 'targeted buy area' (where they might potentially want to drill), then my experience is that the landmen do the original research at the title companies/court houses to learn who the mineral rights owners are, and that's who they will then approach about leasing. A more detailed abstract search is done before the drilling company sends out the Distribution Order (which is the document that states exactly which mineral rights owners get paid, and what %) - but I'm not clear when that is actually done (we're not at that point yet).
I'm not understanding how, if you own the mineral rights, it could have been leased without your knowledge a year ago. Either you own only the SURFACE rights (no minerals), or they somehow missed your minerals' ownership...or there's another possibility that I haven't encountered and one of the experts in the Forum can address. I'm afraid I'm getting in over my head, and I don't want to post incorrect information - so I'd recommend talking to an expert or attorney.
There is SO much to learn! In addition to the tremendously valuable info on this website, I'd highly recommend attending the NARO, Texas chapter, convention this coming summer - June 13–16 in San Antonio, Texas. http://naro-us.org/
As to your question about the lease agreement you signed - check with an expert or attorney, but I THINK you're stuck with it.
It IS complex, but fascinating. Best of luck!
Thanks Paige, All I know for sure is, that my family does indeed own a portion of the mineral rights but none of the surface rights. I thank all that have given response to my posts and in time I will learn more.
Thanks, Dave
Can anyone tell me how to find a survey grid map of Lynn county? I'm just curious of the location of this leased land. I have all the survey information but can't seem to get anywhere with it.