Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 3, 2024 at 5:04

Les, if I was you, I would counter with a nine-fortieths (22.5%) royalty and see what USG says.  If they do not agree, take the 20%.  In addition to your small acreage, the fact is that USG/Trinity is the only operator in that area.  There is zero competition for leases unlike South Caddo.  I would prefer that you not end up an unleased mineral owner. 

I'm sorry you didn't get a response in the North Caddo Group page.  The reason is the old notice function for alerting group members with new discussions is no longer working.

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Permalink Reply by Iris on June 16, 2024 at 5:55

Les, I have never rec'd any royalties due to no wells being drilled in the two years since I've been contracted. Due to my advanced age and the two other family members contracted that owe separate but adjoined properties I wish that I had gone with the higher bonus.  I, myself, own 31/4 land and mineral acres plus approximately 3-4 more mineral acres, I hope to at least get an additional bonus of 1k per acre next spring if they renew.   One family member has passed since then and my oldest living sibling is more ancient than me.  Per advice from this group I don't expect much royalty if they drill.  Since USG is still leasing apparently I'm hopeful I will receive a few thousand next spring if they extend/renew the current  contract.  I will consult with Drew Martin again if needed.  Good luck on your lease.  Thank you for starting a new page, too.

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Permalink Reply by Les on June 17, 2024 at 4:06

Iris, per Skip suggestion I did request a 22.5% royalty to sign our mineral lease for our one acre site and it was quickly accepted. Don't know if this means USG is planning to drill soon but with NG prices having increased this year, there is always hope we may soon see some activity in that section and perhaps a future royalty check.

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Permalink Reply by Skip Peel - Mineral Consultant on June 17, 2024 at 5:20

Congratulations.  Good to hear, Les.  A 22.5% royalty for one acre over multiple wells and twenty plus years of production volumes will equate to tens of thousands of dollars in royalty in your pocket compared to the 20% initial offer.  Trinity is drilling good wells considering how near the northern edge of the Haynesville Shale their units are located.  I suspect that USG Properties/NextEra Energy are looking to have Trinity drill out all the remaining well slots in their HA units in the near future.  Now just cross your fingers for good natural gas prices. 

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Permalink Reply by Iris on July 4, 2024 at 7:38

A few days ago my sister received a letter from Pelican Minerals in Ft. Worth, Texas offering a sum of about $9700 for a mineral lease.  Minerals are already leased to USG Properties.(Section 4, 18N-14W)  I have not received any offer I don't know if my brother's relatives have yet.  She said verbiage was a bit strange. We think it a bit peculiar since we are already leased to USG, the three years are up next spring but we are contracted for a two year addition at 1k an acre if they wish.

Has anyone else heard from this company, which I think is a startup by a landman?  I'm curious but haven't read the letter myself but will comment when I do read.

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Permalink Reply by Skip Peel - Mineral Consultant on July 4, 2024 at 12:03

An offer of $9700 would be to buy the mineral rights.  It's not a lease offer.  Divide $9700 by the number of acres owned and that is the offer per acre or in this case per royalty acre.

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