Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 25, 2016 at 16:16

Companies often need some surface ownership for facilities and well pads.  We're not talking a lot of acreage in total but the location is important for certain facilities.  And those locations have value.  Don't get in any hurry.  Respond to the email with a request for a copy of the  purchase agreement.  Is the offer for your surface and your mineral rights?  Or just the surface?  If this is for a pipeline, the offer would be for a right-of-way easement.  You need specifics.

Permalink Reply by Ryan Kennedy on January 30, 2016 at 2:58

I confirmed that the offer is for both surface and mineral rights. The interaction began with what looked like a form letter sent to Jackson Parish landowners expressing an interest in purchasing their property.

Permalink Reply by Skip Peel - Mineral Consultant on January 30, 2016 at 6:09

For companies developing or speculating in minerals there is only one reason I can think of to buy the surface:  that location is considered key for infrastructure reasons.  Could be a drill site.  Might be for a proposed gathering and treatment facility.  If this form letter is going to many landowners and offers to buy their surface that would tend to make the normal presumptions questionable.  I've never seen blanket offers for surface ownership except for strip mining purposes.  I suggest you get the offer in writing and let the landman know you will take the time to consult an O&G attorney.

Permalink Reply by David Pratt on February 9, 2016 at 16:57

I am curious as well on how to start the process of leasing land I have land in the Jackson Parish area Eros,LA. Section 13, township 17. Do I nominate my land to get offers made? How should I start? The land is also in several owners names and has recently gone thru a succession. Does this make an attractive offer for landmen?

Permalink Reply by Skip Peel - Mineral Consultant on February 9, 2016 at 17:20

You don't want to approach a land company unless you wish to receive a low ball offer - if they have any interest in your location at all.  That's not how it works.  A company decides where they want to drill and then they make offers by area based on the public records of the parish.  If your ownership is clearly evidenced by instruments recorded with the Clerk of Court for the parish where the minerals are located a land man will be able to find you.  If you have any doubt, go to the courthouse and look up the deeds and conveyances for your tract of land.  A recently recorded succession should be sufficient.

Permalink Reply by David Pratt on February 9, 2016 at 17:23

Thank you

Permalink Reply by Skip Peel - Mineral Consultant on February 9, 2016 at 17:27

You're welcome.  You might still want to make a courthouse visit to see what companies are leasing, if any, and where.  The Clerk of Court's office likely maintains a Day Book that lists the conveyances recorded each day.  You may have to go back a number of days to find recorded leases as land companies record them periodically in batches.  Once you know the name of the leasing company the staff can show you how to look up all their leases on the computer.  Then you will know where the leasing activity is located and something about the terms of the leases.  There will be no mention of the bonus paid but if actual leases are filed you will be able to see the royalty fraction and the language in the lease form.

Permalink Reply by Ryan Kennedy on February 14, 2016 at 13:53

I should probably clarify that this guy was offering to purchase the property himself - not on behalf of any oil and gas company. I guess he could be speculating and hopes to turn a profit when/ if the property is suitable for a mineral lease.

Permalink Reply by Skip Peel - Mineral Consultant on February 14, 2016 at 14:08

Then he would have offered to purchase your mineral right or a royalty interest.  There is no need to buy the surface to speculate in the possibility of future revenue from a lease or actual development.