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Permalink Reply by Mac Davis on June 21, 2009 at 9:28

There's probably also a legitimate bias to drill in the less populated areas. Less expensive, more space, fewer neighbors to disturb, less traffic, fewer complaints and restrictions, easier to run gas lines, etc.

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Permalink Reply by MB on June 21, 2009 at 15:35

Jim,
"Money to money": You may have already covered under another topic, but...in a previous post you said that NG royalty calculators don't work because of various deductions before the 12 or 20 or 25% is actually paid out (and decline rates notwithstanding). Is there a rule of thumb that will make the calculators work? For example, if a LO has a 20% lease, can you drop in 15% or 18% and get an expected royalty payment with any degree of accuracy?
Thanks,
MB

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Permalink Reply by sesport on June 22, 2009 at 17:35

Keeping in mind the property tax revenue generated in the parishes with more rural area and how these areas were leased first and for low bonus, keeping in mind which neighborhoods in the suburban areas were the first to sign leases with substantial bonus, this would appear to be a valid conclusion.

Re. urban, low-income areas, depends ... many of the homes in these areas are still held by absentee landlords, they may be savvy enough to get a favorable bonus/royalty but may not care about lease clauses. Others in these areas that actually own the urban property/minerals they live on may not be fully informed or may not completely comprehend all the nuances of this process.

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