Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 1, 2024 at 5:48

Judy, there are a lot of variables that go into considering what is a fair market offer for mineral rights.  You and I would both like to hear from others in Harrison, Co. in regard to which companies are making offers and what those offers are.  Everyone considering a sale needs some context to inform their decision.

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Permalink Reply by Judy Jones on September 4, 2024 at 0:44

These are all offers to buy, not to lease.  I will not sell my minerals. Am wondering, however, if there are prospects of drilling again in Harrison County. Otherwise, why these sudden offers?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 4, 2024 at 5:10

Judy, they may be sudden to you but the entire Haynesville fairway in both states sees numerous offers on a daily basis.  It is possible that there is data in the public record that mineral companies monitor that indicates new wells possibly on the way that include your minerals.  Buyers prioritize acquiring minerals where new wells are on the schedule.  Maybe Julie can help us but you have not provided sufficient information.  At the very least, your survey is required.

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landownerPermalink Reply by Alan Herrington on September 4, 2024 at 11:51

There have been more than 100 drilling permit requests for wells in Harrison County filed with the Texas RRC so far this year.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 4, 2024 at 12:01

As many mineral buyers have pointed out over the years, Texas permits are cheap and a large number are allowed to expire without a spud.  The pertinent number is how many of those permits are still live or spud.  When I informed those buyers that this was not a problem in Louisiana, they were not familiar with the fact that Louisiana permits to drill are considerably more expensive than those in Texas.  I think they called it a conversion factor.  How many issued permits were actually converted to a well spud.

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Permalink Reply by Rose on September 6, 2024 at 0:20

Judy and Skip ~

My family has received two offers to lease our mineral rights in Harrison County, Texas over the last few years and recently one member received a purchase offer to sell his share of 5 acres of a gross 52 acres. The offer is $1,500 per mineral acre, “potentially” totaling $7,500.00.

We know absolutely nothing about how this all works or what questions to ask. I’ve suggested to my siblings that we hire our own representative since the companies offering a contract to lease or purchase our mineral rights are representing themselves as buyer brokers owing no fiduciary responsibility to us as mineral rights owners or sellers.

As of this time, a few of my siblings have signed a contract to lease their mineral rights for three years. So far, since signing the contract, they have not heard anything.

It seems strange to me how it is even possible for the company who is offer a lease or purchase to split up the acreage into 5 acre parcels since there is a Warranty Deed totaling 52 acres and for the company to designate and figure out which 5 acres belongs to which sibling. I’m questioning also the actual landowners position. They too would need to agree with the company to allow for the company to set up shop on their land.

Are there leaseholder and seller brokers out there who can walk me through this confusing process?

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