I recently received my 2nd lease offer. The first one came out of the blue back in the fall of 2015, with a fairly small upfront bonus of 1,200 for just over an acre. Not knowing anything about this, and being extremely busy, I ignored it until I could investigate what was going on, and I wasn’t going to obtain a lawyer for such a small amount. Well, I never got … a-round-tuit.
Now, over 6 months later, a new lease came in with an increase for the bonus of over 5,000 with the other terms all staying the same. Understand, the amount was not increased to 5,000 but was increased another additional 5,000. So this leads me to post here with 3 questions, and I hope someone can be so kind as to offer any information or advice, based on the Midland South location.
Am I correct in assuming such an increase would imply the area to be hot for oil production, or is it more likely I'm holding something up?
Any recent experiences in the area with this, and can someone reply with any recent bonus/royalty type information in the South Midland area? Everything I find is older.
Are there any recommendations for a lawyer/negotiator in the Midland area, or a web site that has such with reputable reviews?
Thank you in advance to any information I can obtain on this matter!
One concern is that you what you believe to be a lease might actually transfer ownership of all or the majority part of your minerals. It seems odd that a land man leasing for an oil company would so dramatically increase the bonus offer without first trying to speak with you.
Lee, could it be that a well has already been drilled and you have an interest under the drill site tract? This sounds similar to what happened to us one time. That was 15 years ago so the laws could have changed, but we were in a very good position.
Yes, we are in East Texas and our attorney handled it for us. There are many people on the site who can give you a much better explanation of your rights if you do have unleased acreage under a drill site. We were paid a large amount for the NG that had already been produced at a very high royalty rate, and then we signed a lease at normal market prices for production from that point forward.
Lee, Look up your acreage on the TX RRC map viewer or share description on this forum to determine proximity to producing and permitted wells. There is no such thing as a standard lease. I rather doubt a layperson can decode the nomenclature and legalese. It is very good bet a "standard" lease is written to greatly favor the producer. Contact forum member Wade Caldwell. He is an O+G attorney.
Thanks. I have a fairly decent knowledge of the rights involved. My post was more about seeking confirmation of this particular area of Midland being hot, and what kind of offerings there were in/around the area. Also, to obtain any lawyer information for negotiation and lease handling. Thanks again for your input.
I did, and it appears there are several "green" wells within the area, if I remember correctly. When I say "standard" lease, I am referring to what everyone else calls the "standard" lease when researching this subject, and I certainly believe it is written to reflect the interests of the producer, which is why I asked about recommenced lawyers. I will definitely look into Mr. Caldwell. Where is he based, and is there anyone else reading this who can recommend him? Thank you very much for the information.
I can recommend an attorney near Midland, but I am unsure if that is permitted in the forum now. Mr. Caldwell's posts on this forum have impressed me, but I have no personal experience as a client.
I’ll vouch for Mr. Caldwell. He is out of San Antonio but has represented me on transactions in west Texas. He is very knowledgeable about that area. He can negotiate not only a good bonus, but a lease that favors your interests instead of the lessee’s. Good luck, sounds like fun. Linton
Awesome. I'm definitely leaning his way, and it's good to hear someone else vouch for him. Precisely what I was looking for by coming to this forum. Thanks!
I live and work in Midland, TX and am very familiar with this area as well as what the lease bonus's being paid are. I would be happy to answer any questions you may have, as well as give you an idea as to what type of bonus and royalty payments are being made in this area. This is our bread and butter so to speak.
Hey Ryan, wish your post had been a little sooner. I did find some help on this site and will post a followup when check is in hand, but the lease negotiation has already been done and signed. Hopefully it was in line with what the area is offering. Not sure I want to know now if it's not. :)