Anyone know how much the rental payments are going for now?

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If you would like to look at the "rental" payments for lease sales in the last few months...check out "Melinda's" suggestion and go to:

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract2

Pick a date from their drop-down menu to query and go South on that "Lease Sale Date." The Parishes are not in alph order, so go through the whole document and search. Then find the parish you are interested in and go to the right to the "rental" column. You can find the $ amounts there.

Don't forget to study up on "rental" agreements in your leasing contract. You can get paid for "no production." Per..."Rents are annual payments on leases not currently under producton made to retain rights to leases...Some lease agreements specify that rent payments continue for the life of the lease, while others do not require rent payments from leases that are paying royalties..."

Check it out.

DrWAVeSport 6/12/2008
Dear shaleover:

It is a pleasure to meet you blog-wise, that is. I have been kindly chastised by the good "ol'" boys over on the "TigerDroppings.com" for even suggesting that a private landowner could receive "rental" payments. I have been informed by them that "rental" payments have been historically reserved for state-owned lands "only" due to O&Gs holding on to mostly outer coastal property leases (large blocks of acreage) thereby forcing these companies to drill or give up the leased
properties so they can be bid out and released.

However, that being said, if you look back for about 16 months of the LA State "sonlite" leasing info, you will find that the $ have grown for the state in the past several months, by leaps and bounds... The state was getting fewer $ before the "Haynesville" mania got out. The O&G "experts" over there say that one might get approx. $25/acre for a "rental" addendum. Who knows in this furry of leasing, what you might acquire today.

Re: The guys over on "TigerDroppings.com" have some great info over there. I will add, though, that these are the same "guys" who shamed me for suggesting that landowners in NWLa had been getting "hoodwinked" as to what their minerals were worth. "They" pretty much told me that the landowners here needed to "thank" the O&Gs for even talking to them...let alone "giving" them money for their minerals. They are not as enthusiastic as we are about higher bonus and royalty %s. Needless to say, I totally disagree with this rhetoric. But, that is "their" line, and they are sticking to it.

I say to you, in my opine...You can ask for anything to be in your lease. You can exclude others from your lease contract. When it comes to signing anything, however, I hope you will contact an O&G expert, lawyer, or some type of consultant that is working for "you" who will help you get the most $ for your contract. You could be in this contract for a very long time. The money you spend on the front-end will be well worth avoiding headaches at the back-end.

Because I like challenging situations...I will ask for some kind of "rental" agreement when I sign my leasing contract. And, I am looking for "private" landowners who may have received same...from older leasing contracts. The State of LA is sure mopping up right now!

Will let you know any further developments per "rental" agreements and I hope you will share same from your inquiries.

DrWAVeSport 6/13/2008
Can you explain the significance of "rental" payments? I don't get it. Something like $25/acre that you are talking about seems very small in relation to the total money involved in any lease. What is the "rental" money for, and why does it matter? Thanks.
Dear CaddoVisitor:

With the 300,000+ acreage that CHK and HK have seemingly leased up around NWLa, it seems to me that a very small percentage of acreage will actually be drilled within the next year or two or three. They don't have the infastructure in place yet, especially in NWLa. And, these players are in so many plays around the country it would also seems to me that if that royalty payment is going to be long in coming, or possibly never, depending on what 640 or 1900+ section you are in, if any...Why not ask for rental? Cannot hurt to ask for it, can it? It may not be much money, but one doesn't know yet just how high leases are going to get in this vicinity.

Rental may need to be a new discussion for private property owners, in this new Haynesville Shale Play. (along with pipeline right-of-way talks)

My opine, alone... Along with my opinion that leases are being sold for pennies on the dollar. Again, just my opinion, alone.

DrWAVeSport 6/13/08

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