I received a letter from Red Oak (apparently associated with Primrose South LLC in some way). I have been told both are new to this area.
They asked me to contact them if I was interested in a lease. They gave no real information.
Have any of you heard of these companies or know anything about them leasing in this area?
Thanks for any information you can provide,
J D Capps
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When a lease offer comes with "no real" information, it is a red flag. Those usually come from speculators who look to flip leases. The usual approach is to offer a somewhat higher bonus to lure those who do not understand the real money, usually, is in the royalty. The royalty offer is lower than what the company is looking for. The spread is their profit. When at all possible, lease to the operator of the brine plant. Directly or through a "land" company that represents them. In that case, more often than not the land company will reveal who their client is.
JD, it would be helpful if you would ask them to send you a lease for your review. I think many members would be interested to know the terms.
The letter was on Exxon Mobil letterhead.
There were two Landmen listed as Leasing Agents to contact.
Address of Exxon Mobile was
22777 Springwood Village Parkway
Spring, TX 77383-1425.
The Landmen were
Derek Jones and Fred Callender.
Good to know, thanks. I would lease to Exxon but the terms are still important. Someone in Cass needs to identify a local attorney who is handling Exxon leases for landowners.
Exxon is taking leases in Cass County under the name Red Oak East LLC.
Those interested can go to the Cass County Clerk website and search for leases recorded and signed. https://cc.co.cass.tx.us/RealEstate/Search
I am unaware of the terms received by the Lessor.
It would be a surprise to find a full lease recorded in the public record. Doesn't Texas allow Memorandums of Lease to be filed to evidence a lease?
Joe, I get an error message when I click on your link.
Type this into your web search engine and it will take you to the Cass County Clerk platform to enter a search.
Go into that site for "Real Estate". Click there. Go to "Search Real Estate Index". I then search under "Party Name".
I entered Red Oak East LLC and all leases recorded up to May 6th are shown.
You are correct that it is not the entire lease but a Memorandum with pertinent details provided.
Thanks, Joe. A five year initial term with a two year extension option takes us well into the next decade. Memorandums of Lease are intended to hide detail from the public especially the royalty. Bonus per acre is never in the lease but appears in the cover letter that comes with the lease. Lessors execute the lease and the memorandum and the lessee records only the memorandum. Lessors need to build a mineral file and keep a copy of the full lease. As some point hopefully a unit survey plat or a certificate of pooling will be available. Keep that also.
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