Replies to This Discussion

Permalink Reply by jim bobb on May 1, 2009 at 10:38

We have 80 acres in 18-11-7 natchitoches parish and have lignite on it,
but have never been able to get any one intrested in lignite. As of now our land is not leased for lignite.
please Let me know who contacted you and I will start a new search for some going prices for lignite. I have in the past re-searched the price for lignite but I don't remember how much it was a ton. At the time I had contaced Swepco and was told that they had a 20 year supply of lignite, but they may have just been busy and did not want to talk.

Permalink Reply by Keith Mauck (Site Publisher) on January 27, 2011 at 5:45

http://www.gohaynesvilleshale.com/group/southarkansaslignitepotential

Permalink Reply by Henry on February 4, 2011 at 2:42

dish4me,

I have no idea what a reasonable offer is.  But I can tell you this.  My family had experience with the Dolet Hills Lignite Mine, in southern DeSoto Parish.  The leases were signed years ago - maybe 15 - 20  years or so.  Lignite leases are different from oil/gas leases, in that the operator cannot immediately dig all the area at once.  It is a 20+-year thing, and some people who signed leases 20 years ago are still not mined.  In order to keep the lease in force, the company pays what's called an "advance royalty" every year.  As the name implies, this is an advance on royalties.  If your land is never mined, you keep it.  If the land it mined, it is subtracted from the gross amount. So recognize that if you sign a lignite lease, it could tie your land up for 20 years.   You will have the use of it, as long as it isn't being mined.  But once the diggers come, it will be totally dug up.

I give the Dolet Hills Lignite Mine people great credit for having easy access to a local land agent who is able to work with owners and answer all questions.  Land owners can call, or go speak face to face.  It makes it easy to work with them.  No phone banks of random people.

Permalink Reply by dish4me on February 4, 2011 at 3:44

Henry, I didn't sign the lease.  Porter didn't get back to me after I sent them more leasee-equitable changes that I would be willing to sign... 

Permalink Reply by The Shadow on February 4, 2011 at 20:24

My land in Natchitoches parish has not been leased yet.  I would like to know what offers were given by the leasers in the Dolet Hills Lignite Mine.  What was the up front money, what was the production (price per ton) and other monetary considerations?  Would like to see the complete terms of their lease.  If anybody would be willing to provide please give a way to make contact. Thank You in advance, to anybody who will provide this information.  This is how we learn.