Replies to This Discussion

Permalink Reply by pilgrim on August 13, 2008 at 13:22

What was the royalty % on this agreement ? We are part owners of some property in the area and are interested in activity in this area.

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Permalink Reply by alleyboy on August 14, 2008 at 0:48

sorry I took to reply. 25% royaalty but I don like the 5 year leaSE

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Permalink Reply by Sean on August 13, 2008 at 15:37

How do you sign up with this group or is it too late?

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Permalink Reply by alleyboy on August 14, 2008 at 0:11

Remohes,
Do you know if this Mr. Bowers is getting up another group?

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Permalink Reply by RAY on August 14, 2008 at 6:15

the "Twilight Meadows" subdivision off Jefferson Paige Rd.
are signing as a group for $17,000 / 25%
this is fact vs fiction
I"ll try and get contact data

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Permalink Reply by The_Baron on August 14, 2008 at 5:20

Typically any exapropriated ROW will leave minerals with the landowner. These mineral servitudes do not prescribe. Dedicated ROWs are being claimed by the local goverments. The big lease bonuses that caddo just received were mostly for ROWs. Water bottoms of all navigable waters are claimed by the State.

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Permalink Reply by CR on August 14, 2008 at 1:12

A respectable attorney would not reply to you with that kind of language. It's true that certain areas are getting more and yes, some neighborhoods do include out to the center of the road. Most situations where the street was dedicated to the city or parish will not be included. If your attorney wants to be an a-hole about your questions, you need to check on your own. You can go to the tax assesors office and get all this info. The attorney we use is charging a flat rate divided amongst all the land owners in our group and at this point it's around $50.00 per household. Remember, everyone is out to make as much money here as they can, including Twin Cities and attorneys.

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Permalink Reply by Kassi on August 14, 2008 at 14:57

Hi, I almost did not see your post because it was so many pages back. I appreciate your kind words. Now regarding your concerns:
I can tell you if your neighborhood streets are maintained by the city or parish then the mineral rights under the street belongs to that governing body and you can not claim them. If, on the other hand, your neighborhood pays to maintain the streets themselves and the developer never turned the streets over to the city or parish you may be able to claim to the middle of the street. It is definitely a question for an O&G attorney.
Many neighborhoods in Fort Worth have negotiated to have the lease based on the property to the center of the street but they all have been communities whose streets were not maintained by the city or county. But this is Louisiana and things are different.
Regarding the offer currently on the table, I have some other questions: Is it for a standard lease? Are there vertical and horizontal pugh clauses? Are there any environmental protections? Is there a definition of what producing in paying quantities is? Is there a penalty for late payment of royalties? Is there a shut in clause that requires payment for shut in and limits the time for shut in? Does it define what would terminate the lease? Is the lease for oil, gas and other hydrocarbons only (excluding all hard mineral including coal, lignite and uranium)?, is the lease a no surface rights lease? To me the land, environmental and land owner protections are more important than the money. That said, I would have to do some research to speak to if $17, 500.00 is a good offer for your area. I do think 5 years is a long lease. What about 3 years with an option to renew for another bonus? Is the majority of your neighborhood going to take the deal? Your bargaining power alone is significantly less than with the group.
Regarding the attorney, the payment he is asking for is not unreasonable and is less than the percentage people would charge. I do not like the way he spoke to you at all but if he has negotiated a lease that addresses the concerns above and your neighborhood is planning to go with the deal you may want to consider it. Just please read and make sure you understand and are comfortable with the terms of the lease before you sign it.
On the other hand, if you want to hold out and see what happens down the road there is nothing wrong with that either. If they are wanting a 5 year lease that means they may not drill in your area within the next 3 years. It could be that lease prices will rise and you will come out ahead by waiting or they could fall (unlikely but possible). That is a choice only you can make.

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