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Permalink Reply by Skip Peel - Mineral Consultant on February 29, 2012 at 17:00

There are four Township 20's in Bossier Parish.  What is the Range?  It would be 20N-11W, 20N-12W, 20N-13W or 20N-14W.

Name	Type	City	Status
HEP ENERGY, INC.	Business Corporation	LAFAYETTE	Active

Business:	HEP ENERGY, INC.
Charter Number:	34861947 D
Registration Date:	11/22/1999

Domicile Address
	118 DEMANADE BLVD.
	LAFAYETTE, LA 70503

Mailing Address
	C/O GARY L. SALMON
	118 DEMANADE BLVD.
	LAFAYETTE, LA 70503

Status
Status:	Active
Annual Report Status:	In Good Standing
File Date:	11/22/1999
Last Report Filed:	11/10/2011
Type:	Business Corporation

Registered Agent(s)

Agent: E. GREGORY VOORHIES, ATTORNEY Address 1: 121 SOUTH AUDUBON BLVD. City, State, Zip: LAFAYETTE, LA 70503 Appointment Date: 11/22/1999 Agent: GARY L. SALMON Address 1: 118 DEMANADE BLVD. City, State, Zip: LAFAYETTE, LA 70503 Appointment Date: 11/22/1999

Officer(s)

Additional Officers: No

Officer:	GARY L. SALMON
Title:	Director
Address 1:	118 DEMANADE BLVD.
City, State, Zip:	LAFAYETTE, LA 70503

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Permalink Reply by SmallFry on March 1, 2012 at 2:54

It is 20N-14W.

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Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2012 at 3:30

HEP is a reputable land company.  You are still responsible for your own due diligence and decision to enter into a lease based on the terms.  Without knowing any particulars regarding your mineral interest, the terms are good.  Actually above average for that general area.  It would be nice to know what company HEP is representing and it doesn't hurt to ask.  I suggest you post this in the North Caddo and Bossier groups.

http://www.gohaynesvilleshale.com/group/NorthCaddo

http://www.gohaynesvilleshale.com/group/bossierparish

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Permalink Reply by SmallFry on March 1, 2012 at 4:57

Thank you. Will do.  I know that there have been recommendations for law firms that have considerable experience in evaluating O&G leases, but I can't find them at the moment (actually live in the Dallas metropolitan area).  Any recommendations, and range of what can be expected to be paid to review a standard lease?

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Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2012 at 5:05

How many mineral acres are involved, approximately?

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Permalink Reply by SmallFry on March 1, 2012 at 5:09

5

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Permalink Reply by The_Baron on March 1, 2012 at 5:06

Good offer for that area, ask for a vertical pugh.

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Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2012 at 5:17

For your modest mineral interest I think you can negotiate and execute your own lease with a little homework.  The Baron has started you in the right direction with a vertical Pugh clause (depth restriction).  Your acreage is too small to need a horizontal Pugh clause.  I'm unsure why you think 22.5% is a low royalty.  It's actually a very high royalty.  25% is the top current royalty for proven, unconventional plays.  20N - 14W doesn't fit that category at this time but it never hurts to ask.

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Permalink Reply by HBP on March 1, 2012 at 6:53

For a small acre do-it-yourself Lessor, the following are good (IMHO):

Cost free royalty, no surface clause ( since it is small acreage, but not ultimately necessary depending on your circumstances), pugh clauses (use both just in case land could end up in two units), no option.  Possibly a maximum shut-in aggregate (2-3 yrs).

There are many, many other clauses, but no surface clause will cover a good bit of those, then Pughs and no cost can be important.

Probably not much upside to that bonus without some proven wells. 

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