Oh, how things have changed!!I recently received a forced integration letter on the Powell 10H Unit in sections 3, 10 and 15, T1N-R5E Amite County. This letter offers a lease of 15% royalty interest with a $75 per acre bonus for a 5 year term. In June of 2015 I received the same letter offering 18.75% RI with $200 bonus for a 3 year with 2 year option.
Does $75 per acre with 15% royalty interest actually constitute a "good faith" offer now??? Anyone else receive this offer?
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Permalink Reply by Skip Peel - Mineral Consultant on A non-consenting mineral interest does not figure into the NRI as it is not a royalty interest. Yes, the operator would own 100% of the non-consenting party's prorated production until their portion of the well cost is recovered 3 times over. With a 300% risk penalty few TMS wells will ever PO.
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
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