Approach with a Lease Offer in Madison County TX

Hi all,

Like most I came t the internet to do some research on a contract that was presented to my gransdmother to lease the mineral rights on our property (58 acres in Maddison County Texas in the Antonio Rios Survey).

To be frank I am not sure of what I am looking at on the contract nor am I familiar with what is standard and what needs to be modified. I am going to seek legal counsil before signing anything but thought if I could track down some of the questions beforehand I would be better off.

The company United Resources (good or bad????) has offered a sum of $400 an acre signing bonus with 20 percent royalty for a 3 year lease. I dont know if that is standard or ???? I do know there are many wells in the area and we actually recieve royalties (albet small) from a well on a family members land ajacent (2 tracks over) from ours.

Some other questions I have are what to expect the condition of my land to be restored to? I am assuming I need to spell that out? what kinsd of improvements I would expect. IE they will need a road and water to drill.

what happens at the end of the 3 yr lease ? If they are producing does the lease automatically renew? If so, how does that work? if not, what are the options.

I understand if no drilling or production are done that the lease smilpy expires but i highlty doubt they will not drill as the area seems t be pretty rich with something they want. I am assuming gas.

Any suggestions or places to look for answers? Again I know I will most likely need an attorney in the end.

Are their other places I should consifder look to lease the rights? We are not opposed to it provide we have some say ion the end result (surface conditions etc...)


You might want to post under "County Groups" above; scroll to Texas and you will find "Madison County" listed. This site is comprised of individuals with interests in Madison County. I'm not familiar with that area so can't help on the bonus amount. In regards to surface damages occurring during drilling operations, these need to be addressed in the agreement and you have stated that an attorney will be contacted in order to address this matter. If a well is drilled on the acreage, then the mineral lease terms will be in effect and not subject to expiration. Again, visit the County Group site and post at that location.