My Dad has a 1 1/2% override for this property. Is there currently any drilling activity?
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Nope, no drilling. Under potash. Company called CL&F permitted some wells last year in Section 3 and 4 north of there. But I would not expect those to happen anytime soon.
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Most who own in or near the potash area hold them long-term. Really long. There is a market to sell the interest, but the mineral buyers know it is not likely that this interest will get fully developed in the near future and so the prices are quite a bit lower than the core area. We have sold interests near here for our clients, so there are buyers…
My family has land in New Mexico, Carlsbad. We were contacted about oil drilling on the land. The landman wants my mom to sign a lease. Should we ask for a signing bonus?
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Hello @Mamu4783 Welcome to the forum! You will get all kinds of good advice here. Yes, anywhere near the Carlsbad area is generally a hot area. These days most landowners have the leverage and can dictate the terms. You certainly should be receiving a lease bonus and have a fair royalty, among other important terms. You can get general advice here as far as essential terms. If you are new to this, which it sounds like you may be, you might want to have an oil and gas attorney review the lease for you.
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Thank you. Yes, I am new to this. My dad took care of all of this before but passed away 15 years ago. He had other properties. He had other land that was first pulled. So now my mom is getting invoiced as an owner, and she didn’t know she had to file a tax return.
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I bought 160 acres of federal leases in 9 and 10 for $50 per acre in 2013. Went to a lot of meetings in Carlsbad with BLM and Intrepid Potash. It was not supposed to get drilled due to the tailings mountain and other lack of access. However, we surveyed and found a location to drill 9 and 10 which we called the Salty Rafter drill island, and we had well permits designed and approved before I sold the leases to a major for $10,000 per acre. I also had a 440-acre lease in Section 4, same story different drilling unit. That sold to the same major but then I heard it has changed hands twice. Don’t fall asleep on this one; it could get drilled at any time. I believe based on phone calls I’ve had on my royalty in this area that 1% net royalty in a 1280-acre drilling unit to be worth $875k.