Replies to This Discussion

Permalink Reply by Henry on August 15, 2011 at 23:39

Krystal,

Yes lease prices have dropped.  However, there is no single going rate value.  Your bonus amount will depend on several factors: 

-  how close the company is to drilling (the closer they are, the more leverage you have)

-  the size of your tract (larger tracts might hold more leverage)

-  your immediate location (how good are the other wells in your immediate area?)

Skip just posted the most recent State Lease prices, and those were in the $7k - $8k area with 25% royalty.  Those numbers probably represent an upper bound.  I can't say you'll get that much.  Use this time to think about other items in your lease that may be important to you.  These might include:

-  cost-free royalties (very important)

-  vertical Pugh Clause (very important)

-  No surface use clause (it depends on your interests, if this is important)

-  Penalties for late payments.  Demands for initial payments within 90 days of production.

-  Limitations on shut-in times.  Reasonable shut-in payments (not the standard $1/acre per year)

-  etc.  There are several draft lease forms on this site, and you can read them and see what other options might be of importance to you.

And, as always, use a qualified oil and gas attorney to help you get the best possible protections in your lease.  Do NOT sign the company's so-called standard lease.

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Permalink Reply by Larry Edwards on August 17, 2011 at 8:12

Where did "Skip" get those prices?

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Permalink Reply by FXEF on August 17, 2011 at 8:29

Larry,

 

Not sure where Skip got his results, but here is a source. 

LA DNR -Lease Sale Results -

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Permalink Reply by Skip Peel - Mineral Consultant on August 17, 2011 at 8:36

The bids I posted are a cut and paste from the monthly state Mineral Board auction.  It is public record and can be viewed in the database.  I post them for the Haynesville/Bossier prospective area each month.  You can search in the archives and see the bids from each month's auction.  The bonus should be viewed in relation to the other information regarding the specific bid tract and the party placing the winning bid.

 

Link to latest bid results:  http://www.gohaynesvilleshale.com/forum/topics/august-2011-la-state...

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Permalink Reply by Bacon on August 20, 2011 at 14:58

Good luck! Let us know what you end up with.

 

 

 

 

 

 

 

 

 

 

 

 

 

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