I am in North Caddo and received a letter from the above company.  Has anyone had any dealings with them.  I have no knowledge of this business and am seeking advice.  We have less than an acre.

This is their offer:  Is this good or bad!  Help!

Our lease offer consists of one of two choices:

  1. $2000.00 per acre signing bonus with an 18.75% royalty, or
  2. $1500.00 per acre signing bonus with a 20% royalty

 

This offer is for a 3 year paid up lease with a 2 year extension at 2/3 of the initial bonus. Attached is an example of our lease form for your review.

Thanks

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USG Properties is the majority Joint Venture partner with Trinity Operating drilling the Haynesville Shale in north Caddo Parish.  The terms offered are standard in that area and there is no competition.  It's USG/Trinity or nothing.  I would take the 20% royalty and the lower bonus per acre but without knowing how many acres you own, that's all I can offer.  If it is a small or modest acreage, based on the lack of competition for leases, you wouldn't have any negotiating leverage.

It would be helpful for others in your area to know the location of your minerals by section-township-range.

Yes, Kate Jones, it would be helpful to know your section-township-range.  I am under contract with Trinity/USG in North Caddo.  I chose the 1500/20% lease and used Drew Martin with Davidson-Summers to review it, also chose a no surface use.  One other family member chose the 2k, 18.75 lease and used an attorney that charged 3x more.  I have yet or we have yet to see any royalties as no wells drilled yet in our section due to rumor the gas may not be quality enough to drill.  Mineral agent used is/was John Peyton.  You can message me if you don't want to share your location information in a general forum.

Thank you. Is there a website where this info may be found?
Thanks

You're on it, Kate.

Kate Jones, the Section, Township, Range should appear on your lease offer.  Also I received a plat form in my offer which showed the area of the unit or the proposed unit.

We haven't gotten to a written lease yet but the sample he sent needs a Philadelphia Lawyer. Is there a local Attorneyor Attorney's that are familiar with these leases?

Thanks

Yes, probably several, Skip Peel referred me to firm of Davidson, Summers, Andrew Martin reviewed my leases, he's referred to as Drew.  I also handled my  brother's lease and had land agent use same terms as me.  My sister and brother-in-law used law firm of Wiener, Weiss, and Madison, a senior in that firm Madison charged them about three and one half times as much as Drew Martin for similar.  I think Trinity/USG was using a law firm out of Lafayette, LA at that time early in 2022.

It was mentioned on this site that some firms in Shreveport, Bossier might have conflict if they are also supporting the drillers. Hope this helps, 

Thank you

Yes, Davidson Summers APLC in Shreveport are my O&G attorneys.  They are all good and Drew has a lot of experience with USG Properties and their JV partner, Trinity Operating.  You can google Davidson Summers and review their website.  There will be contact information there.  Good luck.

Thanks so much, you are appreciated.

Skip,

This is bizarre! I went on the Caddo Assessors site to get the description and could not locate the property at all.

2107 Pinehill Rd 71107

Thanks

I'd offer a comment but I don't use the Caddo Assessor's website.

Thank you

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