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Greg,
That seems like at most a starting point. The worst part is the term of the lease in that they can tie up your acreage for eight years without drilling a well on it. I own minerals leased by EOG in a couple of different parts of the country and have been waiting on a well for years now on every one. I also have family with minerals leased to EOG northeast of Bowie and they have also been waiting for a few years without a well and that is in the hottest part of the play. They tend to wait until the last minute to drill acreage to hold it. They are a good operator but they've got a lot on their plate.
Thanks Mark. Does anyone know of any other operators that are working this area?
Greg,
I agree with everything Mark said above. It seems the prime operator in that area is EOG. Pioneer is also quite involved in Montague county but a bit south of where you are talking. Smaller operators include Newark and Enervest but not sure they are specifically interested in your area. EOG still has a ton of acreage locked up in that area and I have no idea how many rigs they have working...as Mark says...a ton on their plate. Just to play the devil's advocate..if you could get EOG to tighten up the term to 3 years with no option to renew and maybe even get that bonus more favorable (and all the other surface issues resolved to your satisfaction), then you may not care whether they drill or not. Best of luck.
Greg C. Cook said:
Thanks Mark. Does anyone know of any other operators that are working this area?
No! It is HORRIBLE - it should be more like 2 year and a MUCH higher leasing bonus with 25% royalty - plus there are many other things to consider - like land damage, well water damage, etc - this is a thing that is best handled by an experienced attorney - worth EVERY penny you will pay - I recommend Chuck Bartusch in Muenster. He is very familiar with EOG and all leasing aspects in Montague County. You have to be careful dealing with Landmen - they try to get the best deal for the oil company and the worst deal for the landowner.
Thanks Susan. I took your advice and contacted Chuck. He's putting something together as we speak.
Susan Nolen said:
No! It is HORRIBLE - it should be more like 2 year and a MUCH higher leasing bonus with 25% royalty - plus there are many other things to consider - like land damage, well water damage, etc - this is a thing that is best handled by an experienced attorney - worth EVERY penny you will pay - I recommend Chuck Bartusch in Muenster. He is very familiar with EOG and all leasing aspects in Montague County. You have to be careful dealing with Landmen - they try to get the best deal for the oil company and the worst deal for the landowner.
G Allen said:
Greg,
I agree with everything Mark said above. It seems the prime operator in that area is EOG. Pioneer is also quite involved in Montague county but a bit south of where you are talking. Smaller operators include Newark and Enervest but not sure they are specifically interested in your area. EOG still has a ton of acreage locked up in that area and I have no idea how many rigs they have working...as Mark says...a ton on their plate. Just to play the devil's advocate..if you could get EOG to tighten up the term to 3 years with no option to renew and maybe even get that bonus more favorable (and all the other surface issues resolved to your satisfaction), then you may not care whether they drill or not. Best of luck.
Greg C. Cook said:Thanks G. Allen for those words of wisdom. Good advice, thanks....
Glad I shared with you!
Also, Pioneer is working in Montague County.
I am sure this has been taken care of by now but that is a very low opening offer (as they usually are). Primary term is too long, option is unnecessary, royalty is laughably low, and the bonus is totally insufficient.
James:
I have several questions concerning heir ship and such in texas. Can I have your contact information to discuss things in more detail?