Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2013 at 5:04

Edsel, in 2006 lease offers of $100 per acre and a 3/16th. royalty were pretty standard in your part of the world.  And had absolutely nothing to do with the Haynesville Shale which seems likely to be what your mother was referring to as being taken advantage of.  It is not unusual for an energy company to take a lease and then not drill a well.  It's their right and happens all the time.  As to tearing up the check and not negotiating a new lease, that's her prerogative.  Unfortunately it's also a really poor decision on her part.  Land owners have to get out of the mindset of companies taking advantage of little old widow ladies and start treating their mineral rights for what they are - a potentially valuable asset.  Forget about subjective notions of what is "fair" and approach the leasing of minerals as a business transaction.  Your area has nothing in the way of current development activity to indicate a reason for interest by an energy company.  And you don't want to go out soliciting a lease for your family minerals.  You want to familiarize yourself with how all of this works by reading through the wealth of information here on GHS and asking questions.  Start by looking through all the "groups" and joining those that seem to fit your situation.  Read through the past discussions and learn how to search for discussions by key words.  One day the energy company may come calling again and you want to be prepared.  Considering the amount of the extension check you mention you'll probably want to hire some professional help when that time comes. 

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on January 13, 2013 at 7:48

Your mother got a good deal back then. I was working just West of  that area in 2007 and was buying leases for $27 per acre and 1/6 royalty. Your mother must have been a very hard trader to have gotten $100 & 3/16.

• ▶ Reply

Permalink Reply by Edsel McFarland on January 14, 2013 at 5:46

Gentlemen, thank you so much for your replies.  I couldn't agree with you any more that Mom made a huge mistake.  It's too late to look back at what could have been.  I'm interested in what I can do now.  A contact, an email address, someone who knows someone.  Maybe I'm just grasping at straws but I've got to try.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2013 at 6:05

Edsel, your family minerals appear to be too far south to be prospective for Haynesville Shale.  Regardless, the interest in the Haynesville Shale has ebbed even for unleased minerals in areas further north that are in reasonably proven locales.  Oil & Gas companies rarely offer leases to mineral owners that approach them.  That's not the way it works.  If a company has an interest in your area they will perform the research in the local courthouse to find you and make a lease offer.  The first move is theirs, not yours.  You need to read up on what makes for a good lease and learn how to navigate the state oil & gas database so you can track future drilling activity.  To do that, join the SONRIS Help Center Group here on GHS.  In other words you need to educate yourself and be ready the next time an opportunity comes around to lease your minerals. 

• ▶ Reply