Replies to This Discussion

Permalink Reply by jffree1 on August 12, 2010 at 8:13

A-17 in San Augustine Co. is the C. Hereford Survey which would coincide with the talk that there is a new well pad being built in that survey.

http://www.gohaynesvilleshale.com/group/sanaugustine/forum/topics/n...

That is a terrible offer on royalty. Tell them you will take 1500.00 with a 25% royalty. Be prepared to back off of the 1500.00/ac if they will give you the 25%. This is a totally unexplored area for the shale but EnCana would not be leasing there if they did not have some expectation of success for the area. This bonus offer is 80% less than what they offered further south in 2008. There is no reason for them to expect you to take a pre-2008 royalty offer as well. That is a test offer to see how informed you are.

Permalink Reply by Ray on August 12, 2010 at 9:01

Thanks so much. How can I figure out where this A-17 is and whats around it?

Permalink Reply by FXEF on August 12, 2010 at 10:05

A-17, C. Hereford Survey is in San Augustine Co. Highway 103 runs through it.
See map below:

Permalink Reply by Ray on August 12, 2010 at 10:13

Thanks so much for this map, but I can't see it (just shows a red x). Can you email it to me as an attachment or something?

Permalink Reply by jffree1 on August 12, 2010 at 10:09

Here is a link to the Railroad Commission GIS Map:
http://gis2.rrc.state.tx.us/public/startit.htm

Click on "Survey/Abstract". In the new window, choose San Augustine County and then type 17 into the box that says ABSTRACT A- and then click the search button or hit enter. Search results will appear and you should then click "Map" and the map will zoom in to that survey. The more you zoom in on the map, the more road detail you will get. A-17 is north and south of Hwy. 103 and west boundary is Ayish Bayou.

Permalink Reply by Ray on August 12, 2010 at 10:15

I can see it!!! Thanks! :) Man I love this forum.

Permalink Reply by DJG on August 13, 2010 at 4:18

What is your rush to have this signed today? I imagine that your interests might be better served if you slow down a bit and get yourself educated a bit further about what protections you might want to have included in your lease. Lease bonus amount and royalty amount, of course, are important - but it is the details that are in the wording of your contract agreement that you will be living with for 20-40 years or more once this gets signed.

The landman may be pushing hard to get you signed now, before you have time to learn what it is that you need to ask for, but that is because it is their own interest to do so and in YOUR interest.

The gas under your dirt has been there for millions of years, so it's not going anywhere. You likely have one time to get this right, so take whatever proper time is necessary to get it done correctly.


Checklist from TMLA on what items to have added to your lease:
http://www.tlma.org/oilgasleasechecklist.pdf

Helpful hints from TMLA on negotiation of the lease:
http://www.tlma.org/jfhintsonlease1997.pdf

Permalink Reply by jffree1 on August 13, 2010 at 4:38

I think they probably have a 1/8 reservation in the 89 acres so, no surface rights, but you are correct that these things should not be rushed. The lawyer needs adequate time to do his job and get the best terms possible for the mineral owner.