Does anyone know the current going rate for Oil and Gas Leases? I have some mineral interest in Van Zandt and I have been approached to lease; however, I want to make sure I am getting a good bonus and royalty.
My grandfather past away a few years back and I understand he has mineral rights in this county. He signed a lease agreement in 1985 for a oil company to drill. Don't know if it did. My brother and I are next in line but are novices at this. Am I to notify anyone or take any action?
If there was a lease taken in 1985 and if was never drilled, lease is most probably expired. Was your grandfather receiving royalty checks from production? Do you have a description of the property (abstract name and number is a good start)?
From what I was told, it was a one time payment for permission to drill. It was the D. De La Cruz Survey, near Mt Silva I believe. As far as a description, that all I got as far as location.
Probably Mt Sylvan in far SE VZ County. If only one payment was made, that would have probably been the lease bonus. Either well was never drilled or was drilled and was a dry hole. Can't tell you any more without specific tract location details. Leases normally run 3 to 5 years so odds are lease is expired by now
Mark,
The only survey I could find with the De La Cruz name in Van Zandt County is A-142/Section 229. As Rockman said I also see where no wells have ever been drilled in this section of Van Zandt County.
GIS Map of Van Zandt County A-142/Section 229 and surrounding area:
Clint Liles
"Mt Silva" could be Grand Saline - salt mining tied to salt dome in that area
Gentlemen, Thank You. The GIS map of Van Zandt, is that resource available to someone who has difficulty traveling to the area to see any activity? Great map. Thanks again.
Texas RRC site - GIS link below
2 Questions.
What does the "Completion Report" tell someone?
With a "Permit to Drill", does amending the permit stop the process or can they continue to drill? Thank you
Completion report will contain a summary of the drilling and completion details for a well including testing results.
An amended permit to drill is just paperwork update - these can be filed before drilling, during drilling or even after the fact.
I have the opportunity to buy 40 acres of mineral rights in Van Zandt county. Is there any drilling going on there? And if so, what is the going rate per acre?
VZ County as been very quiet lately - only drilling has been on the salt domes and specifically in the Van Area
Not all acreage is the same - value per acre on and around salt domes will be very different (higher) than that off of domes in structural lows (my opinion).
So the location of the minerals you are looking at is ULTRA CRITICAL to determining what may be a fair price
Interested in establishing and monitoring O&G activity in this county. Mineral interest based on inherited position from mother in an area about half way between Van and Colfax. Surface rights sold off decades ago by mother’s siblings. Last mineral rights lease sometimes in…maybe mid-1970’s.
John R. Rochelle (RET.),1999 Professor of History University of Louisiana Sustem Houma,LA 70364 (Actual residency–Parish of Lafourche) 985.872.0979
I am pretty sure that we should have checked on this site before signing a lease with a drilling co. My uncle used to handle all the family leases, but he passed away recently. My aunt was contacted by a group interested in drilling on our very tiny tract of land in the TY Buford A-45 tract and in the adjoining Marshall University Survey tract A-513. These two tracts were previously leased to Palmer Oil in the 1990's. My uncle handled that lease. IN deferring to my aunt, I thought they had checked things out, but not sure. The land management company is Highland Land Management of Dallas and they contract to Keen Resources, LLC. In speaking to the landman, he originally said they were planning to drill in June and were collecting lease signatures to that goal. I think most of the 35 lease owners are family based. Some have not signed and now they say they can not drill without all signatures. They are also saying that they are intending to drill down the road from our site. The contract was a standard 3/16 for three years, with a renew clause. The bonus was based on the precentage of ownership. The problem is that it has been almost five months and no bonus has been sent, although they say it was last week. They promised my aunt to help pay for the probate of my uncle's will in order that they could sign. No paperwork has been sent for that either. I think they are trying to tie up the property and will not do a thing. My son, who is a beginning attorney said the lease should have been reviewed and offered to do so, but my aunt and cousins had already made a decision to sign. They did not get the going amount of 1/5 and the term limits are not in our favor. Although it is a small amount of property, I think the whole thing was a mistake and they should have checked out the drilling group more completely. I am not sure who else is drilling in this area, but if one small group is interested, then surely there are more reliable groups there. The intention is to drill horizontally. I thought that perhaps the lease could be revoked for lack of bonus money, but my son said that is not the case. A previous landman had signed a lease with my step mother who no longer has any right to the mineral rights. I know this is after the fact and may be a total learning experience, but does anyone know anything about the drilling company < Keen Resources LLC or the land management group, Highland Land Management? Is there any other group drilling in this area? This is inherited property through my grandparents and was purchased in the 1930's. I tried to check the drilling permits and the map that shows where wells are being drilled, but I really do not know what to look for. We do have a map showing our lease. Thank you for any information that might be available. I just know our family needs to be negotiating as a group... and it is not happening.
Thank you, CCorbett, Houston
For E C Corbett - Keen Resources was just formed about 3 months ago / based in Dallas but a Virgin Islands company. They have never drilled a well or have any production of record anywhere. Two principals - Mike Popejoy and David Caldwell.
Highland Land Management is probably just a lease firm but cannot find any record of a US based company with that name so far.
The area of your minerals is not a great area of historically drilling success - so no guarantee that anyone else would want to drill here. These is an old horizontal permit nearby but well was never drbut - oinerals panek PoalTwo perinthses ces was gbett
Sorry- hit send too quickly. Excuse the garble at the end of the previous email.
Eagle O&G filed leases for both Abstracts in 2016 - they are an older established company / I believe that their president is very familiar with this area.
As you indicated, the terms in your lease are poor. Norm is to get up to a 25% royalty.
Tana%20Bouge%201H%20Permit%20Hz.pdf
Tana has permitted a well just east of your survey area in July. Horizontal well. Tana has similar address to Keen and Mr Caldwell appears to be associated with each company.
Corbett,
In order for a contract to be enforceable in the State of Texas it must contain several elements, one which is known as "consideration". Consideration is a legal concept that describes something of value given in exchange for a performance or a promise of performance (which in your case is the bonus payment). It must be valuable and sufficient for a contract to exist and while your lease for likely states something along the lines of "for Ten Dollars ($10.00) and other valuable consideration" you have not been provided with sufficient consideration until the bonus has been paid.
How you use this information is up to you but I expect that if the company is actually intending to drill, you'll get your money. If they have recorded your lease at the courthouse that's a whole other can of worms. In that scenario they have put 3rd parties on notice that the property is leased which is detrimental as it's possible that you'd suffer the loss of "opportunity costs" by foregoing other lease negotiations and/or the opportunity for the exploration & production of your minerals.
Corbett, I am in complete agreement with JPR on the consideration. You really should check at the courthouse to see if any of the leases were filed. I get alerts when new leases have been filed. Can you tell us what names to watch for? Also the comment regarding other family members who were leased and shouldn't have. That all depends on what is the legal decent and distribution chain of owners in title. If there is not sufficient documentation to prove who owns the minerals then they are forced to go by the Texas decent and distribution laws. This is why its so important for one to take care of Wills, Probates, etc. and other legal recourse in making sure you and your family have legal title to something and that grandpa's wishes are met legally. If you find they filed the leases without paying you, you have the ability to counter file an affidavit of nonpayment to declare publicly you were never paid, but an attorney can advise you as to the best course of action. You may have to secure one if it comes to that. Good luck, sir.