If you all get a chance go to Texas Monthly website and sign up for froo sub and read the article in Sept 2010. An absolute must read of what might and is happening regarding this play.
Ana Marie Houser said:
Looks just like Terry County! Those county clerk employees will have/have had their hands full!
Kool Kotton said:Let the bidding begin in Dawson county! http://www.pressreporter.com/news_article.php?id=4566
Derek: I just found this forum - very interesting.
Your place north of Meadow is adjacent to ours. I know all your family and knew your grandparents.
We have been contacted by a couple of landmen out of Midland. I haven't done anything yet.
My wife's brother has been offered $400 per acre bonus and 25% royalty. Their place is sw of Meadow about 5 miles.
Is your dad still in Corsicana?
Give me a call at 512-413-7591.
Derek Timmons said:
If you all get a chance go to Texas Monthly website and sign up for froo sub and read the article in Sept 2010. An absolute must read of what might and is happening regarding this play.
Ana Marie Houser said:Looks just like Terry County! Those county clerk employees will have/have had their hands full!
Kool Kotton said:Let the bidding begin in Dawson county! http://www.pressreporter.com/news_article.php?id=4566
I just found this forum tonight while researching leasing activity in Terry County. My family owns 900 acres of mineral rights in Meadow which is currently unleased. I am very interested in share information with other owners in the Meadow area.
Thanks for the great discussion regarding Terry County.
From what I have heard, they were dimensioned so that a rider could ride from the furtherst outpost in the county to the county seat, conduct some business and ride back in one day, without lathering his mount.
If that is true or not, I do not know.
Kool Kotton
I heard the same thing for Dawson Co. Then I found out that the company was not offering over $200.00 per acre east of HWY 87 which is where Mom's mineral rights are located. My trusted source called me and was told by another company that is I was offered $200.00 and acre that I had better grab it and run as they would not offer that east of HWY 87. You lucked out. I was trying to get more 'up front' since it is actually my mom's mineral rights. She is 86 so could use the money now.
Kool Kotton said:
I think you are being lowballed. I am just 20 or so miles south of you in Dawson county and their first offer to me was $300/acre for 3 years with a $200/acre for an additional three years. The starting royalty was 20%. NEGOTIATE....if they are calling you that often, you have their interest.
I am about to sign a 3-year lease for $400/acre with an option for 2 additional years at $400.00/acre with 25% royalty in Dawson County Tx.
Ana Marie Houser said:
Thank you for your reply, Mr. Kotton,
I think you're right. I definitely feel pressured but have contacted an oil and mineral attorney to help me with counter offering. The problem is that the other two third owners have already signed! I'm left as the lone third owner left. I'm not sure how that leaves me - less leverage?
AMH
Kool Kotton said:I think you are being lowballed. I am just 20 or so miles south of you in Dawson county and their first offer to me was $300/acre for 3 years with a $200/acre for an additional three years. The starting royalty was 20%. NEGOTIATE....if they are calling you that often, you have their interest.
I have received a lease draft from a land man and he indicates, “The bonus amount is never in the body of an Oil & Gas lease.” He states in his e-mail the amount of the bonus up front amount. My question: is this true? An oil & Gas lease does not have in writing the up front bonus amount?
It is interesting that there appears to be small interest in land east of Hwy. 87. We executed leases for minerals west of Hwy. 87 in Terry Co. and two leasing agents told us that they had little interest in areas east of Hwy. 87 “at this time”. There are quite a few wells west of Hwy. 87 south of Wellman and almost none on the east side. I have been told that the exploration companies have strong confidence of find deep oil and oil is what they will be going after.
Coque -
Your mentioning that your mother is 86 years of age brought to mind something I think you should all be aware of and be prepared to address.
When I was just starting as a Landman, some 30+ years ago, I leased a man's land in North Louisiana for something like $40,000.00 (I remember the approximate amount, because it was my first big lease and I was very proud of it).
I called his son about another piece of land a just a few months later and he had quite a story to tell me:
The father had been up in his years and, as it turned out, had been totally dependent upon Medicare to pay all of his medical bills for some advanced heart condition. But when he received his $40,000.00 in "income" he was immediately disqualified from further coverage.
The son said that as expensive as his medical care was, the $40,000.00 lasted "a couple of months" and then the father was essentially broke again.
Now, get this part because it's important: When the father went back to the Medicare people, they told him that, yes, he again qualified financially... But that his heart condition was then a "pre-existing condition" - making him ineligible for any additional coverage.
Without proper medical care, the father passed away just a few weeks before I had recontacted his son.
I have negotiated many leases since that time, but have never forgotten the nightmarish sequence of events that had been set in motion by the simple signing of a lease.
And, since that time, I have always inquired as to whether anyone involved in the signing of a lease was dependent upon Medicare or any other "coverages" for medical, disability or even life's ordinary expenses.
And, if they were, to suggest to them that they add a clause to the lease directing all Bonus, Rental and Royalty payments be directed to a son or daughter or other primary caregiver still in their working (taxable) years - thus avoiding any disqualifying surge in that individual's income.
Hope this helps -
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, texas
Did you mean “medicaid” coverage instead of “medicare”?
I suppose I did. Had Medicare on my mind - a friend has been discussing it with me lately.
Kool Kotton said:
Did you mean "medicaid" coverage instead of "medicare"?
Ana Marie, is this from you?
Attached is a pdf of a "what county begat what county" flow chart I ran across several years ago - you have to set your "view" to something like 150% to read it, but I thought you might find it helpful.
It looks like there were 23 original counties, which eventually developed into the 254 we have today.
The Texas General Land Office could probably provide you with all sorts of data about how each came into existance: http://www.glo.texas.gov/index.html
Charles
3036-TEXASCOUNTIES.pdf (2.86 MB)
We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:
We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
Nancy you should be able to get the full 25% royalty period. That is your money. We hired an attorney who deleted over 14 lines of our contract, raised the gas royalty by 25 times and got us 25% royalty up front. Also our 2 year bonus option is for 400.00 per acre or going rate at the time. If they hit oil in the next 18 months these per acre leases are going to skyrocket and there is no way they are going to be able to drill on all these tracts in 3 years. Hope that helps. Derek
Gene Finley said:
Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
Gene and Derek,
Thanks so much for the prompt reply! This definitely gives me some fuel when we call the guy in Midland on Monday. My husband thinks that the land that we have the minerals rights is to the west of Hwy 87, closer to Brownfield. I guess we can call the county clerk and ask about getting names of other landmen who are interested in this area and a sectional map to find our property. Is your property in this general area too? How long ago were you contacted about leasing?
Again, I really appreciate your comments and help.
Nancy
Derek Timmons said:
Nancy you should be able to get the full 25% royalty period. That is your money. We hired an attorney who deleted over 14 lines of our contract, raised the gas royalty by 25 times and got us 25% royalty up front. Also our 2 year bonus option is for 400.00 per acre or going rate at the time. If they hit oil in the next 18 months these per acre leases are going to skyrocket and there is no way they are going to be able to drill on all these tracts in 3 years. Hope that helps. Derek
Gene Finley said:Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
Our land parcels are about 3 miles west of Meadow and about 2 miles north of Meadow. It's hard to figure out what is going on. An article a couple of months ago in Brownfield news said the county clerk's office was being overrun with landmen going over ownership records. There is (and has been for a long time) oil/gas production west of Meadow/Brownfield and northwest in Hockley County. About the only thing I know is that lots of money is being paid for leases by lots of landmen. So, you would think something is afoot. Drilling and production techniques have changed dramatically the past few years.
If you agree on price, royalty, etc. I would strongly recommend having a knowledgeable oil/gas attorney look over the lease agreement. I have used Bill McGowan in Brownfield. His family has been in Terry Co. for generations (grandad and dad were attnys).
Gene
Nancy Heath said:
Gene and Derek,
Thanks so much for the prompt reply! This definitely gives me some fuel when we call the guy in Midland on Monday. My husband thinks that the land that we have the minerals rights is to the west of Hwy 87, closer to Brownfield. I guess we can call the county clerk and ask about getting names of other landmen who are interested in this area and a sectional map to find our property. Is your property in this general area too? How long ago were you contacted about leasing?
Again, I really appreciate your comments and help.
Nancy
Derek Timmons said:Nancy you should be able to get the full 25% royalty period. That is your money. We hired an attorney who deleted over 14 lines of our contract, raised the gas royalty by 25 times and got us 25% royalty up front. Also our 2 year bonus option is for 400.00 per acre or going rate at the time. If they hit oil in the next 18 months these per acre leases are going to skyrocket and there is no way they are going to be able to drill on all these tracts in 3 years. Hope that helps. Derek
Gene Finley said:Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
I am new to this forum and interested in what others have heard relative to potential drilling in the area.
My family signed a lease that covers our mineral rights on NE/4 of Section 80, Block 4-X, E.L. & R.R Survey Terry County recently. I understand that the company plans to drill primarily for oil and intends to start activity in the area they have leased around May/June. It seems like they are focused on horizontal drilling and fracturing as well.
Any tips on how to track whether or not they drill within a unit in the local area? Suppose one could just call the landman or drilling department to inquire. I went to the RRC website but it was a little confusing unless there have been permits issued, etc.
Here's hoping they get lucky and strike oil/gas.
Thanks for sharing.
Doug
Has any drilling commenced out there in Terry, Lynn, or Hockley Counties? Does anyone know what's going on out there other than land being leased?
Thanks!
Has any drilling commenced out there in Terry, Lynn, or Hockley Counties? Does anyone know what's going on out there other than land being leased?
Thanks!