$100.00 per net mineral acre Bonus O&G Royalty 1/5th Brine Sourced Minerals Royalty 1/16th Property is in District 6 of Texas In Texas doesn’t the under the surface water belong to the surface owner? If so, why is this Landman saying I don’t own 100% since 1/2 mineral rights were retained in the past. Also, I have no clue if this is reasonable. I’ve read a lot, but there are no wells, no permits etc that I can find. I think this guy is trying to scoop up some rights so he can negotiate with the what might be happening here in the future…who knows?
1 Like
You need a lot more specific written information to get feedback. Exactly what does the landman mean by a brine lease and what operations will be conducted? You should receive surface damages or have a surface use agreement with pricing per surface acre for space used. Will the operator bring in fresh water to pump down and bring back to increase the saline content? Or will the operator be pumping water our of your land. Then the brine transported to be used in other oil and gas operations. Or is it possible that this is a SWD disposal operation? These are generally surface ownership issues and not a one-time payment. You need to oonsult an oil and gas attorney about a written surface use agreement.
4 Likes
Thank you. Says it is a Oil, Gas and Mineral Lease Primary Term is 5 years and as long thereafter as oil, gas, brine, brine sourced minerals, sulphur or other mineral is being produced. with the exclusive right of exploring, drilling,mining and operating for producing and owning oil, gas, sulphur, brine, brine-sourced minerals, and all other minerals, together with the right to make surveys, lay pipe lines, establish and utilize facilities for surface or subsurface injection and, or disposal of salt water and other substances, construct roads and bridges, dig canals, build tanks, power stations and power lines, telephone lines, treating, processing and extractions facilities, employee houses and other structures on said land, necessary or useful in Lessee’s operations in exploring, drilling for, producing, processing, treating, storing and transporting minerals produced from Lands or any other land adjacent thereto or pooled or unitized therewith. In an attached file they also are including the fresh water and brine water usage.
So I was basically just wondering if this is normal or is it a scam to just take my rights? 1/5 sounds like a sad deal, not to mention 1/16th for the brine.
I’m interested in hearing more about brine and the minerals extracted from them royalties in Texas. Hopefully someone experienced chimes in here.
Here is a post from March 2022; Brine Mining East Texas Cass Cointy
Mar '22 - Have received lease offers for “brine mining “ in Cass County and recently saw a great discussion being set up by Skip Peel. However, I can’t find my way back to that info. Seems to me I’ll have to learn a lot from Skip and others again. Will appreciate advice for beginners in Brine Mining,
Skip Peel posts a lot on gohaynesvilleshale.com. Search under topics of brine, lithium and Smackover for his discussions.
1 Like
This granting clause is too extensive and not favorable to you. Any brine lease should be an entirely separate agreement and not part of the oil and gas lease. You need to consult an oil and gas attorney to help you negotiate a good oil and gas lease and a separate brine agreement.
1 Like
Thank you, I thought it was way to extensive as well. The Landman, if that is what he is, called me. I had thrown the offer in the trash. So he sent me a new one, as he said the other mineral rights owners had signed on one of my tracts. I own 2-24 acre tracts with 1/2 mineral right son the one and 100% on the other. Furthermore, he stated they could do what they want without my signing and I’d only get paid after the well shutdown 20-40 years from now. I will get with an oil and gas attorney to discuss handling of this lease. Does anyone know what company is putting out that they will drill here? For brine or other. I think they are after the lithium due to what Standard Lithium found in Case County.
This topic was automatically closed after 90 days. New replies are no longer allowed.