I have 152 acres in San Augustine county, TX and have been approached by a landman to lease the acreage to drill a Haynesville well.  Can anyone advise me on the fair-market value for the signing bonus?

 

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Is your attorney well versed in oil and gas issues rather than just general council. If not you would be well advised to have an oil and gas specialist attorney review your documents. Too many items can be overlooked if not vetted properly.
I have a very strong and expensive O&G attorney that has experience in E TX and LA.  He has verified what I have questioned and helped me with the correct wording to structure the lease. He has considered far more things than I have, and I am very confident with his advise.
make sure you are leasing to the operator that will be drilling the well and not a flipper.
The operator hopes to drill a well within 24 months.  He is not a flipper.
Sounds like you are doing your proper research prior to signing. If they say they are prepared to drill, then they should be willing to go with a 2 year lease with no options to extend. Might even see if they would consider a 1 year. If your attorney has not already pushed for this I would highly advise that you try and negotiate a "Continuous Operations" clause to your deal in order
to assure that your minerals do not get HBP'd for decades with only 1 well drilled. Good luck to you.
You did not previously mention the royalty rate for your offer. Have they offered 25%?
DJG--- what's the best "continuous operations" clause you have seen on leases that operators have agreed too? Which operators are you aware of that have agreed to this clause? THX for answer.
My guess is NONE of them.
Not sure about other operators, but we were successful in getting Devon to agree to a Continuous Operations clause in our deal. Was not an easy process but we did eventually get this included.
DJG-- what was wording of the continuous clause DVN agreed on? Please post, Thanks

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