Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2012 at 11:43

The leasing in the Benton area is associated with the Anadarko liquids play emerging in N Caddo.  The site discussion on leasing for that play is in the N Caddo group as that is where the first leasing began and is the location of the first drilling units and Anadarko's first well.  You can read the discussions on the related topics in the N Caddo Parish Group.  Use this link:  http://www.gohaynesvilleshale.com/group/NorthCaddo

I think that the $500 bonus is pretty standard to this point but some mineral owners are getting a little better royalty.  Each mineral tract is unique and there are other lease terms that are as important as bonus and royalty.

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2012 at 12:01

That's you choice.  Ask for an offer in writing.  I suggest that in the mean time you read through all the discussions in the N Caddo Group before you make a decision.

Permalink Reply by Marcia B on December 6, 2012 at 23:55

Do you happen to have the contact info for HEP Energy for potential leasing? Is there a specific area that they are interested in?  Thanks so much....Happy Friday :)

Permalink Reply by Skip Peel - Mineral Consultant on December 7, 2012 at 3:29

It is best for land/mineral owners to wait for a leasing company to contact them.  If the minerals in question are in the company's area of interest and the ownership is verifiable in the public records of the parish, the owner will be contacted.  If the minerals in question are not in the area of interest, there will be no offer.  If the minerals are in the area of interest, the leasing company will likely make a lower offer than that made to owners who waited to be contacted.  Acting too anxious can have negative implications.  It's better to invest that waiting time in getting information regarding the terms that would be acceptable in a lease.  And by terms I'm not just referencing the bonus and royalty.  I'm seeing more than a few leases taken by HEP, and the other land companies leasing for Anadarko, that lack the usual protective and beneficial lease clauses.

Permalink Reply by Skip Peel - Mineral Consultant on December 7, 2012 at 4:42

Stating a deadline is usually a negotiating tactic.  And one that short is unreasonable, particularly this time of year.  Generally speaking lease offers don't go away until such time as a discovery well is drilled and turns out to be non-economic.  I advise that no one enter into a lease agreement until they have performed their research, received answers to their questions and can be comfortable with their decision.

Permalink Reply by Andrew on December 8, 2012 at 9:22

Skip,

Any offer of a contract, including an offer to lease, is revocable by the offeror at any time prior to acceptance. However, when the offer states a deadline for acceptance, it is irrevocable by the offeror until that deadline. Thus, while I agree that acceptance deadlines are often used to put pressure on the mineral owner to hurry up and lease, they do have the hidden benefit of making it an offer a landowner can rely on being able to accept.

In my personal experience, a lease offer that gives the mineral owner any less than 2 weeks to consider it is unreasonable.

Permalink Reply by Andrew on December 8, 2012 at 9:25

The offer acceptance rules I mentioned above are specific to Louisiana. Louisiana's contract law is similar to that of the other 49 states but there are some important differences.

Permalink Reply by Marcia B on December 13, 2012 at 14:46

Thank  you for the information... :)

 

Permalink Reply by Aubrey C. Sanders, Jr. on December 14, 2012 at 6:24

Very good advice, Skip. I wonder how many times it will take for others to get the word.

As I have said many times on this site "An oil and gas lease may be the most important

contract one will ever sign."  Anyone listening?