I own a % of the mineral rights of a property in Desoto Parish. We have received a recent lease offer but the bonus seems a little low. I realize it is no longer 2008 and the days of the $20,000+ per acre are long gone, but what is realistic at the moment?
That is a good question to ask anyone that have had to get info out of their operator wheather they are an UMI or have an escalating royalty clause in their lease. How are you notified when a well is payed out.....is it a state law to notify all unit mineral owners or is everyone on their own to find out?
For the case of the UMO, the law is pretty clear. It spells out when and how the UMO must notify the operator and how long the operator has to respond. It also lays out the allowable expenses (e.g., drilling, testing, completing, etc), but of course there is wiggle room in these things. The law also lays out how long the operator has to pay the UMO, once the well pays out. The law also lays out penalties for failure to comply. Go to Caliente's page, and she wrote a really nice primer on the process.
If you have a lease that has an escalating royalty clause, then I think you really need to be specific as to what info the operator needs to give you, when, as well as penalties. You also need to be very specific as to what costs can be attributable to the well cost.
Now for another (dumb) question for anyone. How does one verify if they are being paid by all applicable wells? For instance, we own a small % of the rights on the southern 1/2 of S33 T13N R16W and possibly the northern 1/2 of the same section, but that is being debated. There are 3 active wells in this section. We currently receive royalties from two (154093 & 179849), but not from the third (236859). I am trying to determine if I should be getting any royalties from this well. There is also a 4th well being drilled (240506) and I am trying to determine the same thing for this well. The rights were inherited so I am trying to understand just what we have and what we are entitled to.
I own minerals in Sec. 6, T15N, R15W in Caddo and have checked Sonris but have found no activity. Has anyone been aproached in this area? We had an offer of $5000 and 25% for three years from Chesapeake back in September. What should I be looking to get now?
I cannot tell you what you should get. But be aware that there are good wells in your area:
#238539, 24-15-16, Chesapeake, 11,900 mcfe/day, 20/64 choke, CP 6240#
#238847, 13-15-16, Chesapeake, 10,700 mcfe/day, 20/64 choke, CP 5920#
#239581, 24-16-16, Chesapeake, 13,700 mcfe/day, 22/64 choke, CP 5800#
All of these are very good (not great) wells, and within 3 miles of your section. Good luck.
Sir, is that $750 per acre just for your % interest owned, or for the whole. Say if you owned 5% mineral interest in the property, and the offer on the table was 12K/acre, you would get $600/acre for your proportionate share. If that is the offer for 100%, then ask the leasing company agent what tailgate he/she just fell off of. Get any offer in writing and make certain that the offer is specific regarding whole or fractional ownership. I personally wouldn't take less than 8K/acre, and I think its possible to negotiate up to 10-12K in some parts of DeSoto, especially for a 200 acre tract. Don't forget to have a pugh clause added to your lease, so you can lease deep rights later. Good luck!
He gave each of the owners the same $750 offer based on net mineral acres. The tract is 194 acres, of which we own 5% or 9.7 net mineral acres. Therefore his offer to us was $7275 & 20%. The other owners received similar offers based on their % ownership. But the point is moot because as it turns out, the current lease will not be expiring after all. There is a well being drilled in 33-13-16 that has a PBH in 4-12-16. Apparently the landman did not realize this, but it is my understanding that this well will keep the lease in effect.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More