Just received offer from Double Eagle Development to lease small interest in N2S2 of Section 507, Block D, A381, J H Gibson Survey. From a quick internet check Double Eagle appears to be legitimate.
Offer is $250/nma bonus, 3 yrs with 2 yr option, royalty 1/5. Based on what I've seen so far I think it's low, particularly on the royalty. But I'd appreciate any thoughts or info about current/pending activity in that part of the county. There's a field about 2 miles SE, with a significant percent of the wells not producing. Also a single well about a mile North.
Tell them you're going to shop around for awhile.They might come back with a better number.Everything in life is negotiable.
I just received a letter from the Hearings Division of the Railroad Commission of Texas, a copy of the Final Order and HD Unprotested Master Order dated August 25, 2015regarding some sort of density request from Yucca Energy regarding the West Reeves Unit, Reeves (San Andres) Field in Yoakum County. Can somebody tell me what this is all about? What is Yucca Energy up to in Yoakum County? I don't recall signing any kind of lease agreement with Yucca Energy and their website is vague and not all that informative. Thanks.
I've been trying to find out if there is production on the Skinny Dennis 468 #3h and #1h as I have received division orders.
If anyone knows if there is production, please let me know. i was told that by getting a division order there probably is.
A year ago sign a lease for $200 which I couldn't negotiate but I did negotiate the royalty to 1/4. This was with Manzano.
Thanks!
70 new leases in north Yoakum and south Cochran County showed up in my Drilling Info report this a.m.
Does anyone know anything about the Googins well north of Plains operated by ER Operating out of Dallas? Own some minerals just across the road and have received big offer to purchase.
I know that quite a few groups are looking at Horinzontal San Andres wells in Yoakum.
Does anyone know of a reasonably priced oil and gas mineral lease Lawyer.
We got a offer for lease in Yoakum County and it is very confusing. Not a lot of money upfront for us but i don't want to mess up on the royalties down the road.
Robert, why don't you just scan the lease form they sent you so that everybody can see it and I would imagine you will quickly be provided with a series of comments. Alternatively, you can use a lease form more advantageous to the Lessor (you) but that will cost money.
How many net acres do you own over what size tract? How long do they want and what are they willing to pay both in bonus and in royalty?
The language that bothers me is where it says "Notwithstanding anything to the contrary..." in that I have always wondered that if the form says 1/8th royalty and the "Nothwithstanding" language says it is 3/16, which one is it?
William makes a good point about the notwithstanding language. Don't believe they have played that card successfully in Texas but courts in Louisiana and Oklahoma have tried to make inroads into the clear intent of the language. Chesapeake spent a lot of money trying to defeat the notwithstanding language they drafted and included in their lease in order to get the Lessor to sign. Problem is you are dealing with printed forms. If dealing with a company's form insist they amend the actual language and not just tack something on the end.
And another problem, if your royalty has three or for 0"s right after the period, there is no way to justify a fight even if you are right.
Robert, I am in Oregon and I used and oil and gas attorney in Midland., TX Rate was $175 hr. I also spoke with one in Lubbock, TX that quoted me $225 hr.
our offer was $550/acre and 25%,
Robert,
Have you spoken with them? When are they going to drill? How many wells do they plan on completing on your land? Have they determined the location of the drill hole?
How much of the necessary land have they leased? How many wells have they drilled in your vicinity?
I try to avoid guys who are just tieing up the land to flip to someone else.
I would netotiate the points prior to hiring a professional and then engage the professional. I have had the best luck using a landman who is working for you on a form of lease that protects you. I have at times included a “development penalty” when the well was not spudded within the first 24 months of a 36 month lease. The last one i did was $750 bonus, $400 development penalty.
Now they still, for the time being, have “won”. They misstated my net acres by 20% then their landman provided title that was again hiding the misstatement. Now they want to extend again and they still owe me $17k from the last lease.
Be very careful. My father in law used to say “the big guys cheat because they can and the little guys cheat because they are too stupid to know they are cheating. Save your bonus for litigation costs.”
Thanks for all the input, I have another question, I was looking through the division orders for some other property that we have that goes back to 1964 and it list the description of the property 120.282 acres, more or less, but only down to and including a depth of 5386 feet. Does this mean someone could lease the depths below that, or does the current producer have some type of rights first? is this something that is common or something from times past
forgot to answer, they are looking at a full section, I don't believe there are any wells in that section at this time, the company has a fare amount of producing wells in Yoakum county and some success with horizontal wells from my research.
Robert, i have a bunch of those too. I have ones with different royalties based on different formations. I think it depends on the lease as division order just spells out the royalty based on the lease.
Those old ones were often times filed in the county courthouse. Now, they file. Memorandum of lease so that others can not see the details included in the lease itself.
I actually found a situation today where my great grandfather and his business partner acquired or obtained a 1/32nd nonparticipatory royalty interest on a 40 acre tract. I then found two division orders. One was for a well utilizing only the 40 acres and the other was for a well utilizing 160 acres which also included the full 40 acres. The royalty per the division order did not reconcile. On the first it tied to my great grandfather getting 2/3 of the 1/32nd nonparticipatory royalty interest. In the other, my great grandfather got 1/2 of his share of the 1/32nd subject to further dilution of a 1/8th royalty.
This makes no sense to me and thus looks like a careless error.
I will be very careful if this land is ever drilled again.
Robert, maybe I missed it in all these comments, but where is your lease? I need to know to hep me decide if I should accept the $450 or try to negotiat for more. I would appreciate all the help I can get (as I said below) mine is SE/4 section 130, block D John H Gibson Yoakum County.
Is there an oil Boom in Yoakum county????