Dennis, unfortunately there are a lot of people who are in that boat with you. There is not much I can recommend other than hiring an attorney. You should send a demand letter, at the very least. Joining the Texas Land & Mineral Owners Association might get you some better advice. I would suggest, also, that you friend Ben Elmore on this site and talk to him about the situation. He is a certified O&G atty.
Shelby county lease royalties were going for $5000 and up two months ago. Heard this from an extremely reliable source. Consider $15,000-$25,000 as a range.
Do not sign anything to soon. The situation changes daily.
Dennis that is way way low. I'd just keep saying no untill the offers get much better. you are right in the middle of a big play. Cpk is all over the west side of the lake and devon is buying up center and there are about 20 other companies hungry that in there too. I know its tough to wait. cause its a lot of money but you'd be leaving a lot of money on the table. You cant expect the small companies to pay the big bucks. If their first offer isnt 25% royalty then they arent serious, they are trying to steal it from you. Offers west of center at $8000. are being turned down. Which company is making this offer. With 2 big players on either side of you, you are in the right spot. You can contact colleeen at 936-591-4757 she is our closest contact to you. Whatever you decide to sign for make sure you dont sign a standard lease. It will cost you tens of thousands of dollars in royalty.
You might really want to check around with other people in that area before you counter with $5000 and 25%. I think you might find that that area has had that as a regular offer for a while. Really check around with others who have had offers. Read this site closely before you sign.
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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More