I have mineral rights located in Leon Co. Tx. Can someone point me in the right direction to get a lease for these rights? Thanks, Doug D.
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Welcome to the forum. I am moving your post over to the Leon County topic area where it might get more notice.
You cannot really market leasing like surface real estate. The best thing you can do is make sure that your name and address and description of your acreage are properly filed in with the Clerk of Deeds in the Leon County courthouse. They can walk you through how to do that. Any leasing starts at the courthouse where the landman will look for owner records. If they are interested, they will find you.
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Thank you for the information.
Learn how to use the Texas Railroad Commission website and look up if there is any activity around you. That will give you a feel for the possibilities of action. Or you can post your abstract and some of the helpful folks on the forum and show you how.
$600.00 AC AS OF 10/21/2022 Surprise Valley RESOURES LLC
Terry, what’s your exact location for that offer?
Good to know Surprise Valley is still leasing. Their last lease memo filing with the County was on September 28. At that point, they had recorded 1,636 leases covering an estimated 50,000 gross acres located in 126 surveys in Leon County.
Their lease area dovetails nicely with Comstock’s leasing in Robertson County, so I suspect they are leasing for Comstock, but it may be quite some time before we know. Comstock has leased about 11,500 gross acres in their own name in Robertson, and they have permitted six wells so far in that area. The primary target appears to be Bossier.
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william mann a 598 good luck
How do I contact them to lease my rights?
Do you know your abstract?
Leon Co Texas, A-982, A-736, A-29. I have more rights however I don’t the info with me today. All in Leon Co.
How do I reach you for consultation? Lots of interest in buying our rights to 160 acres in Leon-246. Not sure what to do.
I do not consult on buying or selling as I do neither. My suggestions only: If you are getting multiple offers to buy then the buyers know something that you do not know. They fully intend to make a profit off of buying your acreage. They know the perceived value of it but they will not be offering that amount. The offers that I have received have been generally close to the discounted value of the current well(s) production (They discount for the time value of money over the life of the production and apply a certain price deck to the assumption). Sometimes far less. (I have had the engineering done for my wells, so know what the predictions are.) The offers do not include the perceived value of any future drilling. Some buyers buy and hold for the future, some buyers flip, some really know what they are doing and some do not. If I were you, I would look up your area on the TX railroad commission website to see if there are permits nearby or wells that are currently drilling. Most of my offers have been right ahead of the bit and I have been very happy that I did not sell.
Our family holds onto their minerals (so far), but everyone needs to make their own decision based upon their needs. There are possible capital gains taxes associated with a sale and buyers usually do not mention that item. You are taxed if you have royalties which you probably do know about.
Here are some of the steps that I would take if I were to consider an offer and to see if the buyer is legitimate and well funded.
-I would look the buyers up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am looking for the owners to see if they have experience and their BBB rating.
-I would look up the buyers on LinkedIn or other sites to see what their training and background is.
-I would look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I would not deal with them.
-I would ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I would want a PSA (Purchase Sale Agreement) in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my deed will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed. NEVER hand over a signed deed without getting paid. If anyone wants that, walk away!
I would read the offer very carefully to see if they have added language about other acreage that we had not particularly talked about. I have seen some very bad language in some offers that is very disingenuous.
-I would try to get at least three offers that fit that criteria and then take the best. Or go through an auction site (there will be fees.)
-You can keep the minerals and get the revenue for the first few years. You can sell the minerals. You can sell part and keep part and split the risk. You can put the minerals in your will or give them to a charity, etc. You can enjoy the revenue during your life and then know that others will benefit in the long run.
-I would consult with my attorney and accountant before any sale to determine if there are consequences that I might not have thought of.
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My elderly mother signed a document leasing the mineral rights to Surprise Valley Resources for 5 years. Should they have paid her something for that lease or would that come in the form of royalty if they drill?
It depends upon the terms in the lease. If she had a high royalty, then the lease bonus may have been low or zero. The main payments come in the form of a royalty if they have a successful well. The bonus should have been paid in just a few weeks after the lease was signed. Contact Surprise Valley and get a copy of the lease and proof that a bonus check was cashed (if it was) and who it was signed by. There have been cases of theft of those types of checks. If you are not her POA, then they may want to talk directly to her.
What organizations have expressed interest in leasing your acreage? I assume Surprise Valley is one of them, as A-246 is in their lease area.
It is already under lease to Surprise Valley. These companies want to purchase the mineral rights outright and assume the lease…I assume.
Brand new to this forum. Mineral rights interest owner since 1987. Considering a sale but have a lot to learn. Property is an undivided interest in approx 1124 acres in the in J Reed A749, FM Davis A-1287, and C Lynenburg A-492 Surveys.
I’m assuming that an undivided interest in a large plot is more valuable than an outright ownership of the equivalent acreage. Is that true?
Any comments or suggestions of what I can do to get an estimate of the current market value?
Your acreage is in a “hot” area. It appears that Surprise Valley is leasing for Comstock, which has established a large lease position in Robertson, Freestone, and Leon Counties. Comstock has been very successful in the Haynesville Shale play in Louisiana and the eastern most part of East Texas, and they are now extending the play deeper into East Texas. In this area, the Lower Bossier Formation is the “equivalent” of the Haynesville farther to the east.
Comstock recently publicized their first completion in Robertson County, the Circle M Allocation 1H, which has produced almost 5 BCF of gas since its completion in April 2022. They recently permitted their first Leon County well, the JG Dinkins 1H, located about 10 miles southwest of your acreage.
Other players are involved in this play as well. Aethon has leased up a block in Robertson County and some other players are involved in Leon and Freestone Counties.
Given this activity, it’s no surprise you are getting offers to buy your mineral interests!
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My suggestions only: If you are getting multiple offers to buy then the buyers know something that you do not know. They fully intend to make a profit off of buying your acreage. They know the perceived value of it but they will not be offering that amount. The offers that I have received have been generally close to the discounted value of the current well(s) production (They discount for the time value of money over the life of the production and apply a certain price deck to the assumption). Sometimes far less. (I have had the engineering done for my wells, so know what the predictions are.) The offers do not include the perceived value of any future drilling. Some buyers buy and hold for the future, some buyers flip, some really know what they are doing and some do not. If I were you, I would look up your area on the TX railroad commission website to see if there are permits nearby or wells that are currently drilling. Most of my offers have been right ahead of the bit and I have been very happy that I did not sell.
Our family holds onto their minerals (so far), but everyone needs to make their own decision based upon their needs. There are possible capital gains taxes associated with a sale and buyers usually do not mention that item. You are taxed if you have royalties which you probably do know about.
Here are some of the steps that I would take if I were to consider an offer and to see if the buyer is legitimate and well funded.
-I would look the buyers up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am looking for the owners to see if they have experience and their BBB rating.
-I would look up the buyers on LinkedIn or other sites to see what their training and background is.
-I would look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I would not deal with them.
-I would ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I would want a PSA (Purchase Sale Agreement) in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my deed will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed. NEVER hand over a signed deed without getting paid. If anyone wants that, walk away!
I would read the offer very carefully to see if they have added language about other acreage that we had not particularly talked about. I have seen some very bad language in some offers that is very disingenuous.
-I would try to get at least three offers that fit that criteria and then take the best. Or go through an auction site (there will be fees.)
-You can keep the minerals and get the revenue for the first few years. You can sell the minerals. You can sell part and keep part and split the risk. You can put the minerals in your will or give them to a charity, etc. You can enjoy the revenue during your life and then know that others will benefit in the long run.
-I would consult with my attorney and accountant before any sale to determine if there are consequences that I might not have thought of.
Personally, I hold onto any minerals in hot areas. There may be multiple reservoirs and I would like to keep that profit for my family. You do what is best for you.
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