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Reeves County, TX - Oil & Gas Discussion


Reeves County, TX - Oil & Gas Discussion

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

Members: 677
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Discussion Forum

Richard roberts:Section 11/Block 3/Abstract 51/H & GN RR

Started by Clint Liles. Last reply by richard roberts yesterday. 1 Reply

Richard,Anadarko has an approved permit as of May 9, 2017 to drill a Wolfcamp well(#89-35957) next door to the N/W in Section 8...…Continue

Reeves County, Texas, lease

Started by Suzanne J Taylor. Last reply by Charles Emery Tooke III on Thursday. 3 Replies

I am new to this forum and I really know nothing about mineral leases. My Mother recently passed away and I am just now in possession of my deceased father's oil lease information. Nearing 90 years…Continue

Keywords: County, Reeves

T&P Twp 7 Block 55 Leasing/Purchase Rates

Started by Tom Parker. Last reply by Liz M. on Tuesday. 10 Replies

This is about 5 miles south of Toyah. Have been getting offers regularly to lease or purchase, but don't know what are the going rates these days? There are quite a number of wells a few miles to our…Continue

Lease rates and offers in Reeves County, TX

Started by Reagan "R.T." Dukes. Last reply by Clint Liles on Tuesday. 961 Replies

Use this post to share and discuss your lease offers.  The more we know about what is being offered the better decisions we'll all make.  Share your bonus, royalty rate, and any other provisions you…Continue

Keywords: lease bonus, lease rates, lease offers, royalty rate, Reeves County TX

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Comment by M A Smith on February 23, 2017 at 1:06pm

It is.  Thanks.

Comment by Bobby Grace on February 19, 2017 at 12:53pm

MA, another useful and interesting site is John B. Mcfarland's


Comment by Bobby Grace on February 18, 2017 at 4:52am

Thanks for the references MA. I was not aware that there was any debate about the two terms. Horizontal is what you are when you are dead - parallel to the ground.  When you're walking and talking, you are vertical.  That's how my clients view it, and how I report it.  I'm old and stubborn.

Comment by Melody a moore-jaehne on February 17, 2017 at 4:02pm
My friend has 3.1 acres in Balmorea Block F. I'm trying to run some title on his minerals to see if he can drill a water well. I'm seeing zero reservations on his Deed and the Deed before him. I don't live in that county and the online site would be costly. The acreage is close to the water and my belief is that the minerals were tied up in the RAct in the early 1900's. Can any of you help me?

Comment by Wade Caldwell on February 17, 2017 at 3:54pm
Comment by M A Smith on February 17, 2017 at 1:05pm

Bobby:  It should also be noted that "Retained Acreage" clause in the standard Relinquishment Act Lease Form used by the General Land Office of the State of Texas (used for leases of mineral classified land) follows the nomenclature you described.

Comment by M A Smith on February 17, 2017 at 12:58pm

Bobby:  Yes, there is a great deal of confusion about which is which, and there is a lot of debate about the nomenclature.  The terms themselves have no legal status.  They are just a description of the clauses.  They often appear in a lease as "retained acreage" or some variant. One must read the actual clause to see what it entails.  Yours is the older definition of how they were described.  Many recent references have the reverse of that usage.  That's the direction I took.

A website following your definition:


Websites following my definition:





Comment by Bobby Grace on February 17, 2017 at 11:18am

I believe you have the horizontal and vertical Pugh Clauses reversed.

A Horizontal Pugh Clause releases depths below (and / or above) a particular depth, while a Vertical Pugh Clause releases acreage outside a pooled unit.  Most Pugh Clauses I've seen in the last twenty years have been both Horizontal and Vertical.

Comment by M A Smith on February 17, 2017 at 10:47am

Todd:  I was referring to a "vertical" Pugh Clause.  

There are two kinds of Pugh clauses, “vertical” and “horizontal.”  The purpose of a vertical Pugh Clause is to release depths in a pooled unit below the deepest producing zone at the end of the primary term or after cessation of continuous drilling operations. A variant of the vertical Pugh Clause may also release all depths except the producing zone, even the shallower zones.  This is less typical, and lessors will push back on it.  They will, however, give you the version releasing deeper zones.

The horizontal Pugh Clause operates to release all lands not included in a pooled unit.  It releases land at the surface as to all depths.

In theory, neither of these should affect royalties.  They release acreage and zones that are not contributing to production in the pooled unit from which you receive your proportional share of royalties of production from the pooled unit acreage.  The pooling, on the other hand, would affect your royalty if some of your acreage were excluded from the unit or if someone else's happened to be included, thereby changing the shared proportions.

Comment by Clint Liles on February 16, 2017 at 10:38pm

Thanks Buzz for the info.

Clint Liles


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