I am wondering if anyone else has received lease offers in this area? My husband received a lease offer on this property that previously had a producing well when his grandmother owned it. It passed to his mother and then to him when his mother passed. We know nothing about lease language but I don't know if this small portion of the pool would be worth paying a lawyer to review?
Texas
Cherokee County
Valence Operating
Lease Name WARD, RUSSELL
Field Percy Wheeler
Previous Expired Lease Number 123851
Well Number 1
District 6
8.8 mineral acres owned in the pool
Pool 320 oil, 640 gas
Royalty offer 1/6
Bonus $100/acre
Thank you for your help. I have learned a lot from others in this forum.
Looking through documents, this is what I find, does this help at all? I also attached a copy of a plot map that was in the archives. The plot I highlighted is the property, my husband has a 50% interest in the 17.6 acres, yielding the 8.8 mineral acres.
Russell Ward Gas Unit 1, Cherokee County Texas, being part of the Walter Pool Survey, A-718 the David Eakin Survey, A-262, The R.R. Jewell Survey, A-1, Cherokee County, Texas, and bein more fully described in that certain Declaration of Unitization and designation of unit recorded in Volume 1024, Page 106 of the Land Records of County, Texas.
Legal Description: Located 1677' Fel and 1000' FSL of the JT Jones Survey Cherokee County, TX.
8.8 Net Acres out of 17.6 Gross Acres, J. T. Jones Survey, A-473, located in Cherokee County, Texas
17.6 acres of land, more or less, being part of the J. T. Jones Survey, A-473, Cherokee county, Texas; and being the same land described in a Deed dated May 27, 1968 and recorded in Volume 680, Page 745, of the deed records of Cherokee County, Texas.
Good Morning Tracy. I just checked the RR Commission GIS Mapping System and in the area of A(Abstract)-473 to the East and Northeast there are some fantastic wells being drilled by Valence, Jamex and Breitburn. These Horizontal gas wells are being drilled into the Cotton Valley Sand Formation(10,500'-11,500'). The Completion Reports state that these gas wells initial production are from 5 to 10 million cubic feet per day. Your husbands minerals are in a good area of Cherokee County. I just got off the phone with Mr. W. D. Wilkinson that has minerals about 2-3 miles Northeast of your husbands minerals. He said that the minerals in that area are leasing for $250 per acre and the Royalty rate is 22 1/2%.
You will need to try and get a 'NO DEDUCTIONS CLAUSE' IN YOUR LEASE.... A CLAUSE THAT STATES THAT THE OIL COMPANY/PRODUCER WILL NOT TAKE FROM YOUR ROYALTY CHECK FOR THE COST OF PROCESSING, GATHERING, TRANSPORTING, TREATING, COMPRESSING, DEHYDRATING AND MARKETING OR OTHERWISE MAKING SUCH GAS OR OTHER SUBSTANCES READY FOR SALE.
GIS Map of Cherokee County A-473 and surrounding area:
Thanks Pat, I left messages for 2 that I found on this site with recommendations and just waiting for a call back. I know my local attorneys won’t know much about O&G.
Tracy, as always I think Clint has given you excellent information. We are very fortunate to have him. Valence is drilling the McElroy 3-H right now near the northeast corner of Cherokee County and about 3 miles south of that rig, Jamex is drilling the Johnson 1-H. I hope you are able to get the "free carry" clause. Most operators are now charging us over 30% in expenses on our royalty checks. The last offer we got was for $200 per acre and a 20% royalty and they would not accept our "free carry clause". We countered with a 1/6th royalty with the "free carry" and they would not accept that. In East Texas when expenses are removed from a 20% royalty, we are really working with a 1/8th lease in some cases. Not all operators are charging this much, but the majority are. Good luck.
