My family has been contacted by a landman representing Big Lake to lease for $250/acre and 1/5 royalty.  I am a TX oil and gas attorney, but am not familiar with Big Lake and haven't checked the bonus rates recently since I have read about HOT activity in Vernon lately.  Any help would be greatly appreciated.  You can also email me at


Views: 1237

Reply to This

Replies to This Discussion

 i too have heard of hot activity but it seems like 250. an acre would be a lil low for todays market

 people seem like they don't want to let much information out about what they are offered or what they got for their lease. if people would stick together they would get better leases.20%sounds pretty good but the acreage should be  better hopefully they will offer more


Yes your are correct.  If you live out of town and in the country like I do, you will notice that the animals, cow, horses, deer, etc., seem to hang together in order to support one another.  It looks like they have learned through the ages that more than one set of eyes and ears gives them a better chance for survival.   Now bring this discussion back to humans.  We say and think that the human brain is much larger and therefore they are much smarter than the animals just mentioned.  It seems like we humans haven't gotten smart enough to ban together and share in order to ward off danger and to reap the benefits there of.

What have we to loose by sharing with our neighbors?

Kay, do you know the full business name of "Big Lake"?  There has been a lot of leasing and a good bit of drilling in Vernon but the location of the minerals would be required to know which play or plays to would be prospective for.  Also in order to give an opinion of the lease offer it would be helpful to know how many acres are involved.  If you prefer not to post the specifics in an open discussion thread you can send me a friend request which will give you access to my personal page which contains my email address.

Thank you Skip.  My cousin just told me Big Lake was working for EOG.  we have 40 acres in Sec. 10 3N 10W & 80 acres in Sec 18 & 19 2N 10W  I am not sure which tract they are asking about yet, but both are open to lease.  We did a deal in the fall for $250 on another tract with another company, but I'm thinking the bonus rates have increased by now.  I belive we have 100% of the minerals on both tracts.



Agree with Skip.  Some geographic and size context (even in generalities) would be of some assistance.

Kay, the full name of Big Lake is required to determine if they are registered to do business in the State of Louisiana. There are two pages of companies listed with the words Big Lake in their name. If they are not registered, no need to get in any hurry.  If they are, there will be some further information as to their location and principals.  That information could have some significance for Dion or myself. 

The location is in the general area of interest for EOG as it relates to Tuscaloosa Marine Shale development, often called LA Eagle Ford in central and west central LA.  If Big Lake indeed represents EOG they should be registered with the SOS.

Both tracts are of a size that should encourage thorough due diligence on your part.  Although EOG has been leasing in Vernon Parish for a year or more IMO they are still in the early stages of building their leasehold.  As time goes on lease offers often improve as long as no negative events occur.  EOG recently applied for a LA Eagle Ford drilling unit in the Fort Polk Field.  If they follow up quickly with a well, you should track development on a weekly basis here on GHS and through the state O&G database, SONRIS Lite.  I would go slow and get more information.  It is possible that prior to any plans to develop your specific townships offers may improve slightly.  The days of bonus offers in the thousands of dollars/acre are history for the majority of mineral owners but I could see them going to $500 in your area.  That's the least important term of a lease.  The royalty and the other lease terms are much more important.  I wouldn't be surprised if royalty offers were to increase to 9/40ths (22.5%) as actual drilling gets closer. 

Thank you, Skip.  The landman contacted my cousin and I will ask her to find out the information on Big Lake.  I am most interested to know if it is possible to get 22.5% or even a 1/4 royalty in this area.  I normally do not lease for less than a 1/4, but you have to find out what the market will bear.

I look at dozens, sometimes hundreds, of leases on a weekly basis.  I'm finding no quarter royalty offers by land companies working for mid-majors like EOG in any current plays in LA or E TX.  I suspect that there are a small percentage of the whole regarding O&G leases filed in the public record. Those leases are most likely for lessors who own hundreds or thousands of acres and who negotiated directly with the operator, EOG in your case.  I would be surprised if any land company would offer a quarter royalty as it would eliminate their override. 

When you see a memorandum of lease you know there were better than normal terms involved and they don't want them in the public eye.  I negotiate 1/4 for my clients almost always and, as you stated, usually it is with the company who is drilling and they are not worried about retaining an ORI.

Generally I agree with your comment regarding memorandums however I now see where some companies are directing the land companies in their employ to record nothing but memorandums.  I have followed several lease acquisition efforts this last year where no leases were ever filed, only memos from day one.

Kay I always keep in mind that this is not a private conversation between ourselves but a discussion thread on a public website.  Those who wish to accept the risk to wait until an energy company is willing to negotiate directly with them for a lease may certainly do so.  However that is for those with financial security, a tolerance for risk and professional experience or professional representation.  Many of the mineral owners in that area of Vernon Parish will not get an opportunity to negotiate directly with EOG and they will risk being force pooled.  Although the LA Mineral Code treats unleased mineral interest much more fairly than other states, it's still not a good way to go IMO.

That force pooled statement is something that makes the hair raise on the back of my neck.  One of these days, the land/minerals owners are going to get thier stuff together enough to finally agree on one thing and that is to stop this "right of eminent domain", forced pooling or non consenting royalty owner garbage.  There may be some instances where this is needed; but, before that happens there needs to be some administrative system in place to protect the mineral owner from this political and oil company grab and ultimate graft..


The right to Force Pool is important in forming drilling & production units and is intended to force Working Interest to cooperate in order to develop minerals.  Although Mineral Interests are also subject to Force Pooling under Compulsory Unit regulations, the state requires that they are treated differently from Working Interests.  For example the is no non-participation penalty and the operator must apply the UMI's production to their share of well costs until well pay out.  The state also mandates what lease operating expenses can and can not be assessed a UMI.  

For those who wish further information see the link to UMI basics by Caliente in this discussion thread: 


© 2021   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service