March 19, 2020
I have received a royalty interest lease offer within the past week from a Houston, Texas company for Section 35-Township 10 West- Natchitoches Parish for a five year lease term. Has anyone else received an offer recently (from March 19, 2020) in this region ? If so, what type of comparable amounts are we looking at per acre. I am a bit leary given the economic circumstances now regarding the Coronavirus outbreak in Louisiana.
Thanks in advance.
See my answer right below yours; we were posting at the same time.
BINGO !! BINGO !!
Thanks for this link https://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%... . My name is on the list. What is your best advice for this new well and this suspicious lease offer ?? I thank you so much.
Selling royalty is not much different from selling your mineral rights. The tax situation is just not as good. If you would like to cash out, talk to Indigo first. Operators sometimes buy minerals under their own wells. Live Oak is a reputable company as far as I know. I see plenty of their mineral deeds in the public records on Haynvesville Shale parishes. If you are interested in selling, try negotiating with them for a better offer.
Thank you so much for your help today. I might entertain that idea for sure. Is there a company of landmen or a landman that goes out to a tract and determines the value of it, including timber and potential minerals below based on ownership acres ? The link you gave at the La. Dept of Nat Res. solved this mystery. Again, thank you. :)
RE; Landmen. I can provide you with an opinion of value for the mineral rights but not the timber or other surface value. You would need a timber appraiser for that.
I might entertain your opinion for value. Again thank you today.
Natchitochesman - if you want everyone's opinion just scan the letter in, quit trying to make all of these people guess what the letter said.
Read my answer below this. I suspect it is NOT a lease. You need to get an expert to look at what you have. Do not sign anything without doing that. It still might be worth considering but I'd bet it is not a lease. At least, not the traditional oil and gas lease. Could be some type of royalty lease. Which is really a conveyance.
I bet a dollar to a donut this is not an oil and gas lease. I'd bet it's a hybrid conveyance, some form of royalty deed with a 5 yr prescription period. I may be wrong but that's my guess.
FYI / map of this area attached.