Hello,

I am so glad to find this site. Our family has recently received a mineral rights letter and lease offer for 300 acres in Nacogdoches. It is on the J.A. Chireno Survey, A-17 ( an undivided 2/189 interest in 37 acres) and J.I. Y'Barbo Grant (an undivided 6536/5294151 interest in 189.9977 acres)....

I have no idea what they mean by 2/189 etc... interest?

Also, they have offered $150.00 flat

3/16 Royalty interest

3 primary term

option to extend lease for 2 years

I went to the Nac. County Courthouse and could not find much. I tried speaking with and oil and gas attorney here in Houston but he wasn't much help. He only said that this was a low ball offer and we should negotiate at least $550-$1000 per acre and 1/4, 1/5 or 25% on royalties. Other than that he said that it was not worth his time.

How do I find out how much other leases are going for next to our property?

What about finding out if other wells are producing close to our property and what is being produced?

*I have looked on Texaslandrecords.com and found a lease that one part states EXACTLy what ours does (37 acres-our family name and everything, word for word....should that be right? sounds fishy. The person on the lease is no one in our family)

Any help would be deeply appreciated. I feel like I am drowning here. I know nothing about this.

Thank you so much.

Blessings-

Sherri

Tags: Mineral, Nacogdoches, Rights

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Correction 22.5% would be like 20% with a Royalty Free clause net money

I bought some minerals that covered 3 sections in T15N-R11W.  One of the sections had an old, marginal Cotton Valley well which meant the old, plain vanilla 3/16 Lease was HBP and there wasn't anything I could do about it.  Fortunately, I was able to negotiate a cost free 1/4 royalty Lease on the other 2 sections. BHP/Petrohawk recently completed and turned several Alternate Unit wells to sales in two of the three sections.  They tagged us with charges amounting to 23.75% of the gross sales on the Unit with the old 3/16 lease.  That made my effective royalty rate 14.3% (1/7) in the section with the old lease versus a net 25% on the other two sections.  Tell me it doesn't make a difference!!!  I really like mailbox money so I'm not complaining.  Just stating the facts.

Yes, SB.

The new and improved 2.0 HK (a.k.a. BHP) . . . swings a mighty veg percentage on their monthly royalty.  Years ago, the % on their deductions tended to be in line with the veg of the other operators (as you also probably know).

Then the HA came along, as did the Aussie BHP management need for a faster return on their investment per buying HK.  (Wonder what the stockbrokers in Oz think about that purchase now?)

Still, when one compares royalty statements, there is a narrow sweet spot (even with the upped HK deductions), being as there can be a higher price for the NG (compared to other nearby operators).  That pricing at least sorta mitigates the higher HK/BHP veg.

Sorta.

And like you, I -- too -- like our hard-fought-for free royalty clause (on another location), along with the higher 1/4 royalty . . . per a more recent lease deal.

It's a much easier royalty statement to decipher each month.

So like you say, when you're stuck with the ol' hbp, there's little to be done.

I think BHP purchased HK for their acreage in the Eagle Ford and other plays more than for their HS acreage

A couple of observations from a non-pro----over the last 20 years I have had a couple of low ball offers from landmen-told them I wanted to wait and then they left town.

Go and find out where the nearest wells are. Also you can check out the records at Nacogdoches Court house looking under the name of the company and you might find recent leases that are not yet online in the site you mention. See if they have allowed anything different. Sometimes they only file the memo and not the actual lease but you might be able to contact the people who signed the lease.

Just wondering with all the news on natural gas increases, etc., if anyone knows if there are companies leasing in the Nacogdoches area right now.  I still am unleased with 30 acres and every acre around me leased.  Several have producing wells that have been active for over 2 years.  If anyone has information, would appreciate it.  EOG was showing me leased which I was not, and went to their office and thought I had it corrected, but I have since been told that they are still using the same map.  How do I find out if the court house has my land leased?  May be why I've not been contacted.  I don't know.  Thanks much.

Things in Nacagdoches have quieted down due to lower gas prices. I know that EOG and Devon are looking to divest many of their gas producing assets in this area (e.g. Appleby, Naconiche Creek, etc.).

I am no land man but hopefully someone will give you some insight on best way to track down your mineral issues at the courthouse. It will involve some digging in the records. If you know the legal description of your 30 acres, you may be able to go to courthouse and have one of the clerks help you find you tract and the associated chain of information as to leasing (yes or no).

Hope this helps

Glad to hear something is going on in Nac.  I am in unit near Chireno, well dug over two years ago.  Have heard nothing from EOG on hopefully adding new wells.  Sounds like that  wont be happening any time soon.

Elaine, how long have you owned the 30 acres?  And have you been leased in the past?

Glad to hear something is going on in Chireno area.  Hope that means more to come.

Perhaps whoever buys EOG's assets will be ready to do some new drilling?

I'll keep my fingers crossed Rock Man.  Thanks for the hope.

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