Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
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AboutAs 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 |
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You mentioned that you were in southeast Rusk county, near Panola county. Here is a little more information that you might want to know. North of Hwy 84 and East of 1971, close to Panola, some landowners have gotten lease offers for deep rights [including the Bossier Shale, if any] for $7,500 per acre and a royalty of 25%. Your land might be close to them and worth as much. Lease offers for more shallow well rights [above the Bossier shale, if any] would be worth much less. My guess would be that you could take several months and negotiate the lease offer upward many times over if Goodrich wanted the deep rights; and that it would not change much at all if they were interested in shallow well rights only.
The answer depends of course on circumstances such as where the property is located, and what kind of well they seek to drill [ie., the depths they wish to drill and produce from]. It sounds to me that Goodrich needs to add your acreage into a pool or unit for some reason other than sheer size [the number of acres]. I would want to know why. If you live on the property, you have special needs to consider. I suggest you proceed cautiously in your discussions and not make a deal, if at all, until you are convinced the price is fair given where you are, what depth they want the lease to cover, and you understand fully what may happen to the land [eg., pipeline issues, surface damages, water rights]
With more information, others can help you if they know of lease terms for comparable property near your land. More importantly, with more information, you will begin to be able to assess the pros and cons for yourself.
What are the landowners near you getting? What would they do differently if they could do it over again? Do not overlook the value of obtaining professional advice: experienced landmen, attorneys, accountants. The cost they charge is small in comparison to being in a deal you regret.