I was recently contacted by an energy firm from Lafayette about leasing our acreage, a little over 100 acres, in south Rapides parish for a seismic shoot. We own the minerals only, not the surface. The lease is for 5 years and only payable if/when the shoot is completed. is this normal? I have an issue with singing something with only a probable payout later. Thanks.
Hi Darrell! Where is the land located, what Parish? I see from some prior discussions you may be in Rapides Parish area. I am in the SW part of Rapides (Melder Area). Now I no a 500+ acres 3D was done in my area but not my property (just outside) by Marathon (CCG) a couple of years ago. You would think since you only on the minerals that they would have to lease from who actually owns the surface. Will be interesting to here answers on this.
Hi Lisa, yes, the land is in south Rapides, west of Glenmora. I edited my post, thank you.
No, they don't have to lease from who owns the surface. I have 31/2 acres mineral lease with only mineral rights not the surface rights. The exact circumstances can be tricky, but with the help of GHS people, I went ahead and was able to lease the mineral rights. My father held on to the minerals and the law has been back and forth about it, so far we've won. At least the bonus.
I wouldn't sign a lease without an upfront bonus payment. And the longer the term, the higher that bonus would have to be. Under no circumstance would I sign a seismic lease without good damage clause language and nor with any O&G lease or option to lease language. Sounds like someone is on a fishing expedition. I'd have an experienced O&G attorney review any agreement that you might consider signing.
Skip, thank you for your knowledgeable response. Your second to last sentence says it all.
Also be very careful WHO is O&G attorney. Another member of family paid 3x more than mine. For very similar lease. Ditto what Skip advises. Mine not in Rapides, though.
As always, Skip provides some great advice as to the need for legal representation and review as to any leases, options or agreements. Even though I am an ex-O&G professional, it cannot deny the fact that O&G companies are not out there looking to do favors for mineral owners. They will pay fair prices and execute fair deals, but if they can save some money and put more into their pockets, the better it is for them.
Cautionary statement to mineral owners - always beware!
Along those same lines, in my opinion it is always good for mineral owners to try to get an idea of what the O&G plays are in their areas of ownership. I am not advocating that one gets a degree in O&G geology and engineering but knowing what the plays are as well as the type of wells that can be drilled are important factors to understand. As well as understanding the risks involved as these operators look to spend millions of dollars on a single well to exploit the O&G resources in question.
Thanks Iris, Rock Man, and Lisa.
It's a new 3D survey.
Permit must not be showing up on Sonris yet?
I assumed it was new since the guy told me they began leasing year in August.
Sonris... can they make it more convoluted? I can never find what I need.
I've never seen a seismic permit on SONRIS but I pretty much know where most everything else is. What would you like to find, Darrell?