Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 10, 2015 at 4:14

22 bid tracts.  15 No Bids.  One bidder on 7 tracts with quarter royalty and the following bonuses:  3 @ $1,150/acre, 3 @ $5,100/acre and 1 @ $6,200.  Obviously location matters quite a bit.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract1

Permalink Reply by North LA on June 10, 2015 at 8:46

Not bad.

Permalink Reply by Breesus on June 12, 2015 at 13:46

I am not sure exactly what these reports mean but if we have unleased land in Southern Lincoln parish, and we have an offer, seems like the offers are all over the place depending where you are. How do I know if my offer is good?  It is several hundred acres. Very, very close to some of the pictures in the above links.  Forgive me for the dumb questions.

Permalink Reply by Skip Peel - Mineral Consultant on June 12, 2015 at 14:12

These are actual bids for state leases.  Compare your location to that of the tracts receiving bids.  State leases are the only instruments in the public record that indicate the bonus paid.  A state lease is effective for one year and the lessee must pay one half the bonus payment to extend the lease for an additional year.  For this reason state leases tend to indicate that development will commence in the near future.

Permalink Reply by Breesus on June 13, 2015 at 5:58

Great explanation.  I appreciate the response.