Reply sharing your experience leasing in La Salle County, TX.
Share what you were offered for lease term, bonus, % royalty, survey, and net mineral acres or some idea of property size large or small. This will give us all a good idea for what is a fair offer.
While it is a corporate acquisition, it will still give us an idea. Carrizo recently purchase 13,000 acres in La Salle County's condensate trend for $1,650/acre.
Here's a link to the article:
http://www.gonzalescannon.com/node/5272
Our large family group owns a small percentage of the mineral rights of 169 acres in LaSalle County, TX. We were recently offered $400 per net mineral acre with a $200 minimum, 1/4 royalty for a 3 year paid up lease. We have no idea if this is a fair offer and don’t really know what to do. Any advice? Thanks! Jane
We own only 8 acres off of RR 624 and Guadalupe st about a mile east outside of Cotulla. A "minerals outfit" offered us 3 thousand an acre to out right to buy our mineral rights. We're obviously not interested in this deal. Just the fact we're getting some interest on our property tells me the big boys will be coming in soon and leasing for real. Glad I found this blog, very informative to say the least.....Gary
We received a lease offer for 20 acres near Gardendale in LaSalle, in the condensate zone, for $2000/ac bonus and 25% royalty for a 3 year lease. I hear offers are being made for $1k to $6k in this area. Does this sound right?
The 25 percent royalty sounds right, was it EL Paso who made the offer??
I represented one landowner in LaSalle that I negotiated a 3 year lease, 1/4 cost free royalty, $3000 per acre bonus and a lease form that will give you heartburn.
I negotiatied for another landowner on the same terms as above.
I negotiated for another landowner for 3 year lease, 25% cost free royalty and 1100 per acre bonus.
All the leases were paid up and closed this month.
Does anyone have information regarding the dry gas belt around Encinal Texas, regarding lease bonus per acre?
our family owns mineral rights on approx. 14 to 15,000 acres..interested in potentially leasing it.
Karen,
Are you still trying to lease your land? What county and how many acres?
Karen Morrill said:
Does anyone have information regarding the dry gas belt around Encinal Texas, regarding lease bonus per acre?
our family owns mineral rights on approx. 14 to 15,000 acres..interested in potentially leasing it.
Eric Wayneright said:
Karen,
I'm curious if you've leased the land yet? We have property that we've leased also to Laredo Energy but I think we leased it too soon and didn't get what the going value is now.
Are you still trying to lease your land? What county and how many acres?
Karen Morrill said:Does anyone have information regarding the dry gas belt around Encinal Texas, regarding lease bonus per acre?
our family owns mineral rights on approx. 14 to 15,000 acres..interested in potentially leasing it.
Buddy Cotten said:
I represented one landowner in LaSalle that I negotiated a 3 year lease, 1/4 cost free royalty, $3000 per acre bonus and a lease form that will give you heartburn.
I negotiatied for another landowner on the same terms as above.
I negotiated for another landowner for 3 year lease, 25% cost free royalty and 1100 per acre bonus.
All the leases were paid up and closed this month.
Best,
Buddy Cotten
Mineral Management
Buddy, How would I know if my lease is 'cost free?' We signed just one week ago w Chesapeake. We have 20 acres and it is also 25%, $2,200 per net mineral acre. They said they would begin drilling July12th, but when I looked on the Texas Railroad Commission site, it seems almost none of the wells are active yet although Chesapeake said they have drilled in LaSalle and, thus far, there are no dry holes. Buddy, we have just begun to learn about this oil endeavor that we inherited from my dad, so any help you can offer that would be greatly appreciated. By the way, our lease it via RedSky. Thanks in advance.
My brother sister and I inherited a 1/15th NPRI on 260 acres in LaSalle.
RedSky is wanting us to sign a "Pooling Agreement" for Chesapeake with no up-front bonus and under a lease by someone else signed in March 2010.
They said no bonus is given on NPRIs ("non-participating") and future royalties will just have to follow the existing lease terms.
All very confusing--to sign and hope or not?
Where in La Salle County is this property located? Do you have an Abstract and or Survey number? If you can furnish this information I may be able to help you make a decision as there may already be a drilling permit on the tract.
Jon Philip Childress said:
My brother sister and I inherited a 1/15th NPRI on 260 acres in LaSalle.
RedSky is wanting us to sign a "Pooling Agreement" for Chesapeake with no up-front bonus and under a lease by someone else signed in March 2010.
They said no bonus is given on NPRIs ("non-participating") and future royalties will just have to follow the existing lease terms.
All very confusing--to sign and hope or not?
Two tracts-
1. 166.67 ac Survey 20 Abstract 346 I&GN RR Co.
2. 93.33 acres <from same>
We inherited mineral rights to 950+ acres in North Central La Salle County and signed a 3 year lease with Chesapeake 4/2010 for 25% royallty, $2500 per acre lease bonus. They drilled the first well early July and plan to frack in mid August. 4 more wells are planned. The problem with wells in this area is the lack of pipelines. They are putting them in as fast as they can. No pipeline to hook up to...no where for the oil to go! Well sits there and waits! There is also a shortage of drilling riggs.
Thanks Raetta. We signed the pooling agreement with Chesapeake. We still don't know exactly where our two lots are located or if there are wells being drilled there. All I have are the survey and abstract #s.
You need to find out who your "Landman" is at Chesapeake. A Landman is assigned to each lease to give the royalty owners updates on what's going on. I just called Chesapeake's main number, gave them the area (Eagle ford Shale in south Texas) and the lease name and they put me through to our Landman. I just check with him every few weeks to get an update. You can also search the RRC website for drilling permits to see if any have been applied for on your property. Hope that helps!
My leases in LaSalle County this year have been 3000, 2500, 2000, 1500 per acre bonus, 1/4 royalty, totally cost free.
Mr. Childress,
Flying by the seat of your pants in this business can be costly.
My wife likes to bake cheesecakes. Even her disasters are tasty.
So is the oil and gas business to some degree. Even if you totally foul things up, the results can still be profitable, but perhaps only 60-80% as they could have been.
Jon Philip Childress said:
Thanks Raetta. We signed the pooling agreement with Chesapeake. We still don't know exactly where our two lots are located or if there are wells being drilled there. All I have are the survey and abstract #s.