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Dimmit County, TX - Oil & Gas Discussion

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Dimmit County, TX - Oil & Gas Discussion

Oil & gas discussion group for those interested in Dimmit County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Website: http://www.eaglefordshale.com/counties/dewitt-county-tx/
Members: 112
Latest Activity: on Wednesday

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Comment by William Douglas Archer on February 5, 2018 at 8:16pm

Thank you Mr. Flueckiger.  

My interest is rather small from 8% in a best case on down

i hope many of the others dont sign.

Comment by Patrick J. Flueckiger on February 5, 2018 at 8:11pm

Mr. Archer,

The solar developer has approached you because the solar company could be liable for interfering with your right, as a mineral owner, to produce your minerals. The mineral estate is the “dominant estate” (over the surface estate) with rights of ingress and egress and use of the surface to the extent reasonably necessary to develop the minerals. While the mineral owner must make reasonable accommodations for existing surface uses, such surface uses are not protected if they prevent economical mineral development. Thus, the solar company would like to protect their investment in a solar farm on the surface by reaching an agreement with the mineral owner to limit mineral development activities to certain predetermined areas. The agreement would limit your rights and protect the solar company from potential liability for interfering with economic development of the minerals in the future.

So, as to your first question, you do have certain valuable rights that the solar company would like you to limit via a written agreement. As to your second question, mineral production and solar development can theoretically coexist if both parties agree to limit their respective operations to designated parts of the property. However, there is no guarantee that the predetermined areas allocated to mineral development will be sufficient to allow for full development of the minerals in the future. Mineral owners should be cautious in signing any agreements. 

Patrick Flueckiger
Texas Land and Mineral Law

Disclaimer: This post is for informational purposes only and does not constitute legal advice, nor does it establish an attorney client relationship.

Comment by William Douglas Archer on February 5, 2018 at 7:31pm

SOLAR farm - i received a letter of inquiry today noting that i owned minerals in Dimmit County and wanting to discuss possibly using the surface for a solar farm.  Meanwhile my wife’s family is being asked to lease their land in Goliad County for a solar farm.  

Question 1 - does the mineral owner who does not own any surface have any rights to lease?

Question 2 - how do solar farms coexist with mineral production?

Comment by Sheryl Prestidge on August 1, 2017 at 1:08pm

I have a San Miguel well in Valley Wells I would like to sell. If anyone is interested please contact me for further information.

Comment by Jayne Burgin Stokes on May 30, 2017 at 2:13pm

Is it possible to specify for VERTICAL drilling only on my leased properties - negotiations...and anything New re: Gambit Leases being released by the courts?... thanks!

Comment by Jeffrey Clarkson on May 29, 2017 at 1:20pm

My brothers and I received an offer from Sanchez Energy for a small portion of T. & N.O.R.R. Survey No. 21, Abstract No. 779, as follows: 

OPTION ONE:
Bonus:  $350/acre
Primary Term:  3 years
Extension Bonus: $250/acre
Extension Term: 2 years
Royalty: 22.5%
or 
OPTION TWO:
Bonus:  $250/acre
Primary Term:  3 years
Extension Bonus: $200/acre
Extension Term: 2 years
Royalty: 25%
As part of the same request, we received a ratification for a lease on Farm Lots 39, 40, 41, 42, 55, 56, 57 and 58 in Section 169 of the Cross S Ranch Subdivision out of the Francisco Pereyra Survey, A-3. That lease provided for a $500 bonus and 25% cost-free royalty, with no extension term. 
When I asked the land man why we weren't getting the same deal on our lease as the lease we were asked to ratify, he said it was because the minerals are in different parts of the county. 
Should I insist on the same deal or something else entirely? 
Thanks for any help. 
Comment by Jayne Burgin Stokes on March 23, 2017 at 3:28pm

Does anyone know??
What is the status of Gambit Oil's former leases? ... are they still held by the bankruptcy courts? My leases have expired with this now defunct co.
Interested in rcvg new leases. And are there any VERTICAL wells being drilled into the Buda? I want to specify 'vertical only' - is that possible and recvd well by prospective Lessors...Any replies, much appreciated. Thank you :)

Comment by Geo Shea on March 2, 2017 at 1:24am

G C Gill, The Sanchez link I read was from your post of Nov 15,2016. Thanks.

http://investor.sanchezenergycorp.com/phoenix.zhtml?c=248475&p=...

Comment by Geo Shea on March 2, 2017 at 1:20am

G C Gill, Sanchez and Maverick (recent name change and goal change). In the past we have leased to Chesapeake, Farmland, Newfield, Sage and Union Pacific. Obviously different times and different mineral tracts. So not entirely new to the process. Everyone would like to have production from a lease. But, take Sanchez for example; they can drill, but, according to their stats, they have 335,000ac leased in the Eagle Ford play. (I got those figures from a Sanchez investor report...got the link off this forum). The number of actual wells producing/drilled/operating was small, in my opinion, vs prospective well sites available. So, are they just tying up lease ac? Granted there are some companies that try to lease up acreage and sell the "bundle" to production based outfits, for a fat profit of course. Anyway, I'm getting off tract. Sorry. Location request A-637 and A-1058. Survey names Newell and Votaw. It's late and I don't have the Block/Tract numbers in front of me. Hope this helps answer your question. 

Comment by Ed Cuellar on March 1, 2017 at 2:17pm

Thanks for that heads up William.  If you took their gas without paying for it they would come down on you like a ton of bricks.  All this info is what makes Forum's like this one so valuable. 

 

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