My family recently learned that our parents years ago owned some land in Anderson County that was sold, but they retained the mineral rights. Recently we were contacted by a Landman who offered a bonus of $150 to sign the lease (3 Years) and 1/5 of the production. What are others receiving as a bonus for signing the lease?
Gerald
This is in line with what I and several other people in the Neches area have recieved over the last 10 months. What part of Anderson Co, is your interest in?
John Cundieff
It is located somewhere between Palestine and Tyler. That's as much as I know at the moment. I am waiting for more info from the landman.
Gerald
john cundieff said:
This is in line with what I and several other people in the Neches area have recieved over the last 10 months. What part of Anderson Co, is your interest in?
John Cundieff
My family has received an offer as well. A landman for Waggoner Osborne Land Services working for Sulphur River Exploration Company offered us $125.00/ac, 3/16 royalty for 3 years and an option to extend for an additional 2 years at the same rate. The property is located south of Frankston and east of F.M. 19. Is this the same company that your offer is from?
John are you from Neches? My brother Jeff Lancaster was pastor at a church there several years ago. We are going ahead with our lease agreement, but are not sure if we like the $150 signing offer. If your property is producing, is it ok to ask what is the production rate? There is a beautiful RED Ferrari at the dealer here in Austin and I wonder if I should go ahead and make a deposit on it!!!
Gerald
john cundieff said:
This is in line with what I and several other people in the Neches area have recieved over the last 10 months. What part of Anderson Co, is your interest in?
John Cundieff
Hold off on the Ferrari for the time being, we leased our place last Nov and I know several others that leased to the same co. and one landman (not mine) told some of them there would be a rig rinning some time this year but it hasn't happened yet. We leased to Gream resources as did the others I know and there is another company Silver river or Sulpher river leasing just north of us towards Frankston. I live in Jacksonville which is about 25 miles from Neches and there are three men in my Sunday school class that also leased to Graem on land where they own minerals just inside the Cherokee Co. Line. I have a first cousin who's husband also pastored in Neches . E-mail me and I can give you much more info on what is causing all the activity in Anderson Co. johncundieff@yahoo.com
Gerald the info I can pass on is somewhat private and lengthy so if you send me your e-mail address I'll send as I learn it
Gerald when you get your lease look for the survey name in the legal description and let me know. I have a Anderson Co. survey map and I cansee where your interest is and let you know. The "eaglebine" formation is the reason for the up-tick in leasing in Anderson Co. It is a play on the words eagle ford and woodbine. South Texas gas drillers a few years ago would offten hit "wet" spots or "oil windows" when drilling and the two formations are adjacent with the eagle ford shale overlaying the woodbine sandstone. The woodbine has much greater perosity than the eagle ford shale and serves as the reservoir rock. As gas prices started crashing in 2008 and oil prices started up drillers began targeting the oil windows ond the name eaglebine was coined. This trend has advanced to the north east some 400 miles in the last few years and is now in east Texas. Za Za energy in Houston had a map on their web site a year ago that shows the cluster of counties that are now producing from these conbined formations and Anderson Co with the exception of the NW corner is included on this map. There has been no eaglebine drilling here yet but there is a lot of activity in Leon and Houstion counties. So the oil companies are betting on the come. Google eaglebine and you can read from now to Christmas. Interesting stuff. John
Gerald I went down to my place near Neches this morning to check on the bow hunters but I stopped at the Neches store first for some coffee and gossip and you can get plenty of both. There is an old man (about 90) that is there every morning and he remembers your brother well and said he was one of the best preachers they have had. Neches is very small,one store and a post office but they have an excellent sc hool. If MST sees this reply tell your landman that $125 isn't enough,everbody I know got $150 and one friend told me 2 weeks ago that a lady he was in school years ago got $200 just north of Pert and south of Frankston. He said Silver River was doing the leasing and I wonder if it was Sulpher River that you mentioned. By the way Gerald, the old man at Neches name is George Simmons
John, thanks for that info. Take care.
Hi John, I got the lease agreement in the mail today - what a bunch of gobbledegoop. The land is part of the P.O. Lumpkins Survey, A-477, Anderson County, Tract One in that certain Warranty Deed from Nevada W. Bednar to Charles A. Spear and Mary J. Spear, dated August 1, 1979. I tried to read the lease agreement, but it made my head hurt. I think we should get a lawyer to go over it and my son-in-laws father is a lawyer. I am reluctant to agree to the lease without getting legal advice.
Gerald
john cundieff said:
Gerald when you get your lease look for the survey name in the legal description and let me know. I have a Anderson Co. survey map and I cansee where your interest is and let you know. The "eaglebine" formation is the reason for the up-tick in leasing in Anderson Co. It is a play on the words eagle ford and woodbine. South Texas gas drillers a few years ago would offten hit "wet" spots or "oil windows" when drilling and the two formations are adjacent with the eagle ford shale overlaying the woodbine sandstone. The woodbine has much greater perosity than the eagle ford shale and serves as the reservoir rock. As gas prices started crashing in 2008 and oil prices started up drillers began targeting the oil windows ond the name eaglebine was coined. This trend has advanced to the north east some 400 miles in the last few years and is now in east Texas. Za Za energy in Houston had a map on their web site a year ago that shows the cluster of counties that are now producing from these conbined formations and Anderson Co with the exception of the NW corner is included on this map. There has been no eaglebine drilling here yet but there is a lot of activity in Leon and Houstion counties. So the oil companies are betting on the come. Google eaglebine and you can read from now to Christmas. Interesting stuff. John
I own some mineral rights just south of Neches, Tx in Anderson County. If anyone has contact info for a landman leasing this area, let me know.
Thanks!
Hi, we're in the process of closing out a Trust and taking over properties. In the interim, we have received a request which is quite unusual for an initial 4 month lease (along w/a small signing bonus) followed by a whole lot of legal jargon.
At 4 months 125/month for the first 4 months seems quite low - After all, after property tax and other deductions, leaves us little profit. Two, I see everywhere else that most people are provided w/an initial 3 year lease even on surface lands. So, this has me curious as to why the MMS only wants to pursue a 4 month lease (I also fear it being related to Dept of Interior a bit about eminent domain) - cause in my head they can either find oil, find oil then condemn the property or not find oil and leave a mess- basically right?
So, ultimately how does one prevent this from happening?
Is 4 month a realistic initial lease for agencies/landmen/etc.
How does government involvement w/lease play into the whole picture?
We also have other properties in other counties so we were thinking of selling off the surface land in bits and pieces over time. Then, the person helping us close out our account forwarded this lease of which I have several concerns. So, I am hoping to find someone else in Anderson County who has been through the process of Mapping, Drilling and receiving royalty income.
We understand that this area has a lot of issues w/fracking - we are told not to worry but still.....
Also, as the Salt Domes are extremely important resources, we are also somewhat concerned that our land is not located in/or too near this area. We can check but just wanted to get insight from a local landman or land owner if possible.
Last but not least, have any of you whom have allowed drilling found producing wells? We already have one in production and another which we are in the process of selling off is possible - We have a potential buyer at the moment, if anything changes or once we obtain the deeds, I'll let those interesting in buying in the Leveland/Littlefield/Lubbock - Caddo Parish areas through the proper Forums.
Any answers any of you more experienced at managing can provide is greatly appreciated. Going through a big learning curve but know we'll no doubt save lots in the process. As I used to work for Teppco/Duke Energy as a technical writer I'm more familiar with the terminology and process than the admin side - So, again, thanks for your help - greatly appreciated - All the best to everyone involved in this crazy biz - Later'
Sharla, is that $125 per acre or $125 per month in total? It sounds to me like someone who wants a cheap lease so they can try to flip it to someone else at a profit. I would have no problem with someone who wanted to option my acres but when they do not come right out and say that's what they want I would not deal with them. The large amount of possible profit brings alot of something for nothing people to the oil and gas business, the no money down and OPM people. They may not even pay you. It's not worth filing suit for such small sums and it isn't against the law to owe someone money. The blemish on your title alone from this lease would make it a poor deal. Sharla S. said:
Hi, we're in the process of closing out a Trust and taking over properties. In the interim, we have received a request which is quite unusual for an initial 4 month lease (along w/a small signing bonus) followed by a whole lot of legal jargon.
At 4 months 125/month for the first 4 months seems quite low - After all, after property tax and other deductions, leaves us little profit. Two, I see everywhere else that most people are provided w/an initial 3 year lease even on surface lands. So, this has me curious as to why the MMS only wants to pursue a 4 month lease (I also fear it being related to Dept of Interior a bit about eminent domain) - cause in my head they can either find oil, find oil then condemn the property or not find oil and leave a mess- basically right?
So, ultimately how does one prevent this from happening?
Is 4 month a realistic initial lease for agencies/landmen/etc.
How does government involvement w/lease play into the whole picture?
We also have other properties in other counties so we were thinking of selling off the surface land in bits and pieces over time. Then, the person helping us close out our account forwarded this lease of which I have several concerns. So, I am hoping to find someone else in Anderson County who has been through the process of Mapping, Drilling and receiving royalty income.
We understand that this area has a lot of issues w/fracking - we are told not to worry but still.....
Also, as the Salt Domes are extremely important resources, we are also somewhat concerned that our land is not located in/or too near this area. We can check but just wanted to get insight from a local landman or land owner if possible.
Last but not least, have any of you whom have allowed drilling found producing wells? We already have one in production and another which we are in the process of selling off is possible - We have a potential buyer at the moment, if anything changes or once we obtain the deeds, I'll let those interesting in buying in the Leveland/Littlefield/Lubbock - Caddo Parish areas through the proper Forums.
Any answers any of you more experienced at managing can provide is greatly appreciated. Going through a big learning curve but know we'll no doubt save lots in the process. As I used to work for Teppco/Duke Energy as a technical writer I'm more familiar with the terminology and process than the admin side - So, again, thanks for your help - greatly appreciated - All the best to everyone involved in this crazy biz - Later'