Family owns about 206 acres of land. Is this a large enough parcel for a well or does this property need to be leased with adjoining property?
Yes, there are oil wells with 40 acre spacing. Gas wells are often 640. Depends on the type of well.
Barbara:
Where are these minerals located? The State, etc.
The minerals are located in Atascosa County in Texas.
charles s mallory said:
Barbara:
Where are these minerals located? The State, etc.
Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:
The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:
Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
Barbara:
One easy way to get this information is to contact the Railroad Commission of Texas, either at their Austin office or their San Antonio field office. Be sure to have your legal mineral description available.
Barbara Anne Price said:
Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
Charles,
I am not sure what a "legal mineral description" is. Does it relate to a survey of the property owned?
charles s mallory said:
Barbara:
One easy way to get this information is to contact the Railroad Commission of Texas, either at their Austin office or their San Antonio field office. Be sure to have your legal mineral description available.
Barbara Anne Price said:Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
Barbara:
I was referring more about info such as Township/Range/Section(s). I would gather up any and all informaiton (surveys, etc). This will provide the information needed for someone to locate your acreage on the field map. Have you ever been contacted in regards to leasing?
Barbara Anne Price said:
Charles,
I am not sure what a "legal mineral description" is. Does it relate to a survey of the property owned?
charles s mallory said:Barbara:
One easy way to get this information is to contact the Railroad Commission of Texas, either at their Austin office or their San Antonio field office. Be sure to have your legal mineral description available.
Barbara Anne Price said:Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
One of our family members has just been contacted regarding a lease.
charles s mallory said:
Barbara:
I was referring more about info such as Township/Range/Section(s). I would gather up any and all informaiton (surveys, etc). This will provide the information needed for someone to locate your acreage on the field map. Have you ever been contacted in regards to leasing?
Barbara Anne Price said:Charles,
I am not sure what a "legal mineral description" is. Does it relate to a survey of the property owned?
charles s mallory said:Barbara:
One easy way to get this information is to contact the Railroad Commission of Texas, either at their Austin office or their San Antonio field office. Be sure to have your legal mineral description available.
Barbara Anne Price said:Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
Barbara:
I'm sure that you will be hearing from someone very soon as this is an acitve area. Be sure to read up and do your homework before signing a lease.
Barbara Anne Price said:
One of our family members has just been contacted regarding a lease.
charles s mallory said:Barbara:
I was referring more about info such as Township/Range/Section(s). I would gather up any and all informaiton (surveys, etc). This will provide the information needed for someone to locate your acreage on the field map. Have you ever been contacted in regards to leasing?
Barbara Anne Price said:Charles,
I am not sure what a "legal mineral description" is. Does it relate to a survey of the property owned?
charles s mallory said:Barbara:
One easy way to get this information is to contact the Railroad Commission of Texas, either at their Austin office or their San Antonio field office. Be sure to have your legal mineral description available.
Barbara Anne Price said:Charles,
How do I find out what field rules apply? What information do I need to know to do this?
charles s mallory said:Barbara:
I believe it will either be 40 or 640 acre based on the individual field rules for the Eagle Ford Shale.
Barbara Anne Price said:The minerals are located in Atascosa County in Texas.
charles s mallory said:Barbara:
Where are these minerals located? The State, etc.
The lease being offered is for $525/acre and 20% royalty. I have been trying to educate myself on Eagle Ford and oil wells in general as I live in NC. I know where the property is but have no clue as to what range, township, or section it is in or how to find out. The acreage is about due W of Jourdanton and slightly NE of Charlotte in Atascosa County. It is near the intersection of FM 2146 and CR300. They want a 3/2 lease. Any opinions? I am guessing this is coming from Cabot Oil. Our family owns 100% of the surface and minerals.
Barbara:
I am not familiar with the going bonus rates for this are but the $525/acre sounds a bit low since the acreage is within the Eagle Ford Shale area. If you could learn where your minerals lie in proximity to the nearest producing wells, this would be a major factor in the amount of bonus money/acre you should recieve. Do Not sign for a period of more than 3 years and Don't put an Extension Clause in the lease. If you allow an extension clause, after the 3 years elapse, the company will be able to lease for another two years at the rate negotiated today. Alot of things can change in 3 years and leases could be bringing twice as much / acre as they are today. Take your time and don't get in a hurry to sign. Make sure you and your family know what is being agreed on.
Thanks for the response. Some are in a hurry and afraid we might be drained if we don't sign, but I am not thrilled with this offer. I think you are right that a lot could change in that time. I will convey this to family members.
I guess with some oil companies looking at 50 acre spacing we would have some protection on over 200 acres. I can't think they would want to drill that close if they could drain the oil with fewer wells.
There is some mention of Pearsall which I think is below the Eagle Ford shale. I don't know if that is better or worse, but have been reading up on Cabot Oil.
charles s mallory said:
Barbara:
I am not familiar with the going bonus rates for this are but the $525/acre sounds a bit low since the acreage is within the Eagle Ford Shale area. If you could learn where your minerals lie in proximity to the nearest producing wells, this would be a major factor in the amount of bonus money/acre you should recieve. Do Not sign for a period of more than 3 years and Don't put an Extension Clause in the lease. If you allow an extension clause, after the 3 years elapse, the company will be able to lease for another two years at the rate negotiated today. Alot of things can change in 3 years and leases could be bringing twice as much / acre as they are today. Take your time and don't get in a hurry to sign. Make sure you and your family know what is being agreed on.
Barbara:
Good luck but again, you should all take your time in the leasing process.
Barbara Anne Price said:
Thanks for the response. Some are in a hurry and afraid we might be drained if we don't sign, but I am not thrilled with this offer. I think you are right that a lot could change in that time. I will convey this to family members.
I guess with some oil companies looking at 50 acre spacing we would have some protection on over 200 acres. I can't think they would want to drill that close if they could drain the oil with fewer wells.
There is some mention of Pearsall which I think is below the Eagle Ford shale. I don't know if that is better or worse, but have been reading up on Cabot Oil.
charles s mallory said:Barbara:
I am not familiar with the going bonus rates for this are but the $525/acre sounds a bit low since the acreage is within the Eagle Ford Shale area. If you could learn where your minerals lie in proximity to the nearest producing wells, this would be a major factor in the amount of bonus money/acre you should recieve. Do Not sign for a period of more than 3 years and Don't put an Extension Clause in the lease. If you allow an extension clause, after the 3 years elapse, the company will be able to lease for another two years at the rate negotiated today. Alot of things can change in 3 years and leases could be bringing twice as much / acre as they are today. Take your time and don't get in a hurry to sign. Make sure you and your family know what is being agreed on.