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...)