Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 1, 2024 at 7:30

Tom, $750 and a fifth is not necessarily a low ball offer for CV in your area.  There are some details that inform what is a reasonable offer like your number of acres and current CV activity in your immediate vicinity.  I suggest you post the name of the company making the offer.  I find it always better to lease to the operator whether directly or through a land company working on their behalf.  Now that the email notice function is working again, I suggest you post this discussion in the Rusk group also.  I'll post the link to the group page below.  You need to join the group to post a new discussion.  If there is current CV production in your immediate vicinity the royalty is likely a more important lease term than the bonus per acre.  If you are in a desirable location and have enough acres to provide some negotiating power, I'd suggest you counter with a nine fortieths (22.5%) royalty. If your lease turns out to be productive, the royalty will be worth much more than the bonus in the long run.

https://gohaynesvilleshale.com/group/ruskcounty

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Permalink Reply by Skip Peel - Mineral Consultant on December 2, 2024 at 7:16

Tom, I have added your discussion to the Rusk County Group page.  You can view it here:

https://gohaynesvilleshale.com/group/ruskcounty/forum/topics/cotton...

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Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2024 at 6:45

Sabine Oil & Gas Corporation	HARRISON	Scan Liberty	BERGIN I (AW)
	PANOLA	Scan Victory	MULLINS O V B (AW)
	RUSK	Scan Spirit	HELVENSTON B HS (AW)

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Permalink Reply by Rock Man on December 7, 2024 at 16:35

ENVERUS site has lease filings. Normally details like bonuses and royalties are not part of the public record (and therefore picked up by ENVERUS_.

• But sometimes this data is public and viewable.

In looking at leases filed in the past 12 months in this area, I see bonus per acre numbers ranging from $100 to $400.

• And royalties ranging from 12.5% to 20%.

Personally, I would be more concerned about the royalty than for the bonus.

• As well as getting a cost-free lease (which would prevent one from losing 10-15% of your royalty revenue due to deductions tied to transmission, gathering, compression, transportation and processing).

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Permalink Reply by Skip Peel - Mineral Consultant on December 8, 2024 at 2:22

I wonder where Enverus gets this information since what is filed of record is a memorandum that includes neither the royalty fraction nor the bonus per acre.  If accurate, it would be good information for mineral owners to have.  How much does an Enverus subscription cost?

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Permalink Reply by Rock Man on December 8, 2024 at 15:37

ENVERUS has their sources - usually courthouse / no idea how they get this more specific lease info.

Be sitting down when I tell you the cost............

Single user is now $8100 plus tax.

• And I get a "deal" since I have been a subscriber for many years.

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Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2024 at 1:36

Ouch!  Makes me wonder what a new subscriber would have to pay.  The only means to acquire specific lease terms would be from the lessors or the lessees.  Mineral owners are unlikely to provide that information freely to Enverus and lessees have good reason to keep those details hidden.  Lessees would have no benefit in revealing those lease terms to mineral owners.  Of course, at an $8100+ per year subscription cost few mineral owners will be getting an Enverus subscription and will be kept in the dark as to the best terms being offered.  The only business interest I can think of that would benefit from knowing those lease terms would be mineral companies looking to buy minerals.  They could easily afford a subscription to help them target mineral lessors.

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