Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant 13 hours ago

When a lease offer comes with "no real" information, it is a red flag.  Those usually come from speculators who look to flip leases.  The usual approach is to offer a somewhat higher bonus to lure those who do not understand the real money, usually, is in the royalty.  The royalty offer is lower than what the company is looking for.  The spread is their profit.  When at all possible, lease to the operator of the brine plant.  Directly or through a "land" company that represents them.  In that case, more often than not the land company will reveal who their client is.

JD, it would be helpful if you would ask them to send you a lease for your review.  I think many members would be interested to know the terms.

• ▶ Reply

Permalink Reply by Joey Capps 13 hours ago

The letter was on Exxon Mobil letterhead.

There were two Landmen listed as Leasing Agents to contact.

Address of Exxon Mobile was

22777 Springwood Village Parkway

Spring, TX 77383-1425.

The Landmen were

Derek Jones and Fred Callender.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant 12 hours ago

Good to know, thanks.  I would lease to Exxon but the terms are still important.  Someone in Cass needs to identify a local attorney who is handling Exxon leases for landowners.

• ▶ Reply

Permalink Reply by Joe B. Lovelace 11 hours ago

Exxon is taking leases in Cass County under the name Red Oak East LLC. 

Those interested can go to the Cass County Clerk website and search for leases recorded and signed. https://cc.co.cass.tx.us/RealEstate/Search

I am unaware of the terms received by the Lessor.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant 11 hours ago

It would be a surprise to find a full lease recorded in the public record.  Doesn't Texas allow Memorandums of Lease to be filed to evidence a lease?

Joe, I get an error message when I click on your link.

• ▶ Reply

Permalink Reply by Joe B. Lovelace 10 hours ago

Type this into your web search engine and it will take you to the Cass County Clerk platform to enter a search.

https://cc.co.cass.tx.us/

Go into that site for "Real Estate".  Click there.  Go to "Search Real Estate Index".  I then search under "Party Name".

I entered Red Oak East LLC and all leases recorded up to May 6th are shown.

You are correct that it is not the entire lease but a Memorandum with pertinent details provided.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant 10 hours ago

Thanks, Joe.  A five year initial term with a two year extension option takes us well into the next decade.  Memorandums of Lease are intended to hide detail from the public especially the royalty.  Bonus per acre is never in the lease but appears in the cover letter that comes with the lease.  Lessors execute the lease and the memorandum and the lessee records only the memorandum.  Lessors need to build a mineral file and keep a copy of the full lease.  As some point hopefully a unit survey plat or a certificate of pooling will be available.  Keep that also.

• ▶ Reply