Replies to This Discussion

Permalink Reply by jffree1 on December 7, 2010 at 6:48

They wouldn't. And they will seek an exception to drill and produce without you signing (which they will get). The people who signed a lease, along with the operator, have a right to realize production from their minerals.
You might be able to get them to bump the royalty up a bit but it will be hard to get a better bonus.

You could try to force your way into the unit (as an unleased interest) but you would have to meet the standards set out in the Mineral Interest Pooling Act to have a hope of pulling that off. I suggest doing some research on Pooling in Texas... or consult an attorney.

Permalink Reply by Jo Ann Herrington on December 7, 2010 at 7:38

I've done some research to see who is leasing in Angelina County. My particular mineral interest is
pretty much under water (Sam Rayburn). Goodrich is still leasing. They were the first to approach me.
I signed a lease with them after going back and forth for about 6-8 weeks. The bonus inched up (and I
do mean inched) and they would not go higher than 1/5th royalty. Had I been willing to wait, I might have been able to get a little more, but I do not have the time nor the inclination to pursue it. They will most likely be pooling mine into a unit. I don't know if I said that correctly, I have not investigated pooling.

Permalink Reply by jffree1 on December 7, 2010 at 10:39

Jo Ann, 1/5 is not a bad royalty. A cost-free royalty (other than taxes) clause would enhance that , of course. That is one of the lease issues a good lawyer can help with.

Permalink Reply by Jo Ann Herrington on December 7, 2010 at 11:40

I work for an oil & gas attorney.

Permalink Reply by jffree1 on December 7, 2010 at 11:50

That's wonderful! Is he/she local to our counties? Keith has used to have a link at the top of the main page to recommend someone because people are always asking about attorneys. I am glad you had counsel.

I probably should have directed that last comment to Mr. Brightwell, anyhow, since you have already signed your lease.

Permalink Reply by Jo Ann Herrington on December 7, 2010 at 11:53

As I stated, i leased to Goodrich. I didn't get as much as I had hoped for, but I do not think it was a bad deal. They were much more willing to increase the bonus than the royalty interest. The Landman told me that they wanted my lease, and we went back and forth for several weeks (6-8). I just asked him flat out what he was paying other mineral owners around me. I told him I was tired and I had been contacted by another company and I was going to do something real soon because I just didn't have the time or the inclination to keep on playing around. So what's it gonna be? I told him that I would rather deal with him. I realize he is working for the company and not for me, but I feel like I know a little something about his company and I appreciate the fact that he will answer my questions. We started at $200/acre bonus and 1/8th royalty.
After much back and forth i signed at $350/acre and 1/5th royalty. He did tell me that Southland Paper owned most of the
minerals is close proximity to mine. (J. McAnelly Survey, A-43, Blk. 7). They do not have all of that leased, but they have enough to unitize? Hope this
helps you.