Anyone else been approached by Teche Exploration for leasing? I have received an offer in the mail for $200 an acre with a 1/5 royalty. I ignored it for a few days and they then called me to up the offer to $250 an acre. We actually have two tracts of land. He approached me on our land (20 acres) in Section 18-T14N-R7W. Our property is off of Punkin Center Road and sides a Natural gas pipeline that has been there forever. Anyone else hearing anything? Skip Peele asked me to share this info with other Bienville Parish landowners. Our land has not been leased in years so this offer came out of left field. Hopefully, its a sign that something may be happening in that part of the Parish!
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I'd say, get out your squirrel gun but this maybe natural gas instead of oil. Don't want you to blow yourself up!
Hi Skip
I got an update on Teche. They floated the idea of having a 1/5 royalty at first and after production happens then going to 1/4 on the royalties.
Marc, that's more like it. The question for those with some negotiating clout is one of post production deductions. For example a 1/5 royalty lease with an enforceable no cost royalty clause may be more lucrative in the long run than a 1/4 royalty if significant production is established. Although less often seen, a 9/40ths royalty (22.5%) is also an option. In any case I suggest having an experienced O&G attorney review the standard form lease and craft an Exhibit A to address the specific concerns that a fee owner may have. If possible a lease should include a depth clause that limits the lessee's rights of exploration. And knowing what the target formation is can help to inform how to craft an exhibit. For example, Cotton Valley production often comes with high salt water disposal costs.
I will see if what he says about he new percentage option. They still have not provide any information on the formation they are targeting. And yes I will seek and OG expert before I sign any lease.
A good O&G attorney should speed up getting to Teche's best offer. Once a known attorney is involved most lessees will cut to their best offer. A depth limitation clause will also often make the lessee divulge the target formation. If a lessee targets the Cotton Valley it's okay to include the Hosston as they are often co-mingled but the clause must be drafted carefully and tied to a reference well's producing depth in close proximity.
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
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