Hello there, I have been reading some of your postings triying to learn what to do when my time comes to sign a gas lease. Although I agree on the fact that a lease, instead of selling, is the way to go, I don’t know what is the current price per acre near downtown Mansfield. I know there are two wells that are currently drilling near my house so, I know the XTO agents will be knoking soon and I want to be ready for the negotiations.
Dear Bobby,
If this is for your land under your home, you need to get with your neighbors and put all your property's together. The More land you have for XTO EXXON the better price you get. Some neighborhoods do better than others, some hire attorneys One Neighborhood in near Southwest Fort Worth, we got $15,000 per acre and .275 Royalty and $25,000 dollars donation the neighborhood association. When the Land men come knocking remember one thing, they work for their company that is working on behalf of the XTO, they really don't look out for whats best for you the home owner, their only interest is getting your land lease for the best deal they can make for their company. Some of them are Pushy, if one acts like that to you, find another. Read some of the other Forums and you will see, one fellow approached by oil company, was offered $50 per acre, and after just one phone call to the company, the price went up to $1000 an acre. So don't sign the first offer. Also you will want an attorney to look over any contract you think about signing, I learned from my attorney to insert Pugh clause, that means they had to use all my land, of the 35 acres, they couldn't use just what they wanted, they had to pay me for use of all acreage. Then a little Later I learned of another clause that had the Oil Company give back to me the minerals 100 feet below and on down, from where the driling hole bottoms out. So in the future if something is discovered beneath that depth, I have a change to lease that land again. Now to be truthful your going to get more from your Lease bonus than you will in the short run from the Hole Money, but over the 20, 30, 40, 50 years, you should get enough to take your wife to dinner once a month, and when you sell your home, you can keep the minerals if you like and will them to your kids. Here in Fort Worth, their is not much talk of what people are getting in monthly royalty checks to know what to tell you. The First Land Men I met with Dale, Told me that I should net $1000 per net mineral acre, Smoke and Mirrors I say now. I have 139 acres in Hudson Oaks that took 6 years for Oil company to drill on. My share is 7 net mineral acres with two wells, my check this last month was $400.00, of course natural Gas cost is weak, because of the glut. This is my second year of production, Last year we got $600 a month. I have a third of an acre under my home, and they also include the land to the middle of the street in front of my home and yours. I now estimate that from my home lease, I will get $60 a month for the first year est. Then it will drop off to $30 a month for the next 25 years, I should receive $9000 over that time. Thanks Texas for being one of the only States that you can several the minerals from the land.
PS: The $15,000 an acre price came crashing back to earth and they haven't offered that high in some time. I had a parcel of 35 acres in Hurst that Chesapeake gave us $5000 per acre with 3 years lease, and no exemptions. We have leased that land twice now because the two Oil Companies buying that area are feuding and will not compromise, so it looks like we will get to lease that land again a few more times.
Sincerely,
Chris