Hello, my sisters and I have been contacted by CGS regarding leasing our mineral rights in Dawson. Our mother passed away only last month, so we’re still sorting through everything. What experiences can y’all share with us regarding CGS and their leasing operations? What should we look out for? Any drawbacks to signing a lease agreement? Thanks very much for any assistance y’all might be able to provide us.
EOG and CGS are the same. EOG is referred to as “Apple of oil” in the industry. They have deep pockets and are very active in dawson county. They would be my first choice, if u can get decent terms. NO POST PRODUCTION CHARGES is what u want in the lease
Thank you for the info. They’re offering a 100K “signing bonus” plus $500 an acre. I assume that’s fairly standard? What are post production charges?
What is the legal description of ur property. U might read the many threads under dawson county- there is lots of current discussions going on- as it is a very hot area
Post production charges are what they charge for marketing, dehydrating, compressing, transportation, etc. They can eat up quite a bit of your royalties. If the numbers are as significant as you posted, you would be wise to get a good oil and gas attorney to look at the lease and get it more into your favor. The first offers and draft of lease are not usually in the mineral owner’s favor, so getting good legal advice can be worth every penny. No such thing as “fairly standard”. All depends upon your location and what reservoirs they are going for.
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i would do whatever M. Barnes or Tracy Lenz suggests u do
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Ms. Barnes, the rights are located at Section 8, Block M of the EL & RR Railway Co. Survey. According to an RRC map I found online, that sections is surrounded by several dry wells. Could you recommend a competent minerals attorney in Amarillo? Thanks very much.
I do not work Texas that much. There are several attorneys listed in the Directories tab above. You do not need someone in Amarillo necessarily, just licensed in Texas and a specialty in oil and gas.
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