My siblings and I have almost 51 NMA in Caddo County (07-10N-09W). I am curious if anyone else in this area has been approached with any lease offers. We have a current offer that started low and has gone up but still seems quite low as compared to what we were able to do 9-10 years ago. Last time we leased we had multiple companies soliciting and this time not so much. I know nothing—truly, but have been elected as the “negotiator” for the family and want to do the best I can! Any information or advice is much appreciated!
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We are in 23 10 9. Just accepting offers. 1/5 3yr $1,500. Also 22% 3yr $750. No depth clause on either. At least a page of amendments. All wanted additional 2 yr. That left easy.
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Caddo has had a resurgence in leasing in the last few months, depending upon the area. There are at least five agents who have already filed leases in 7-10N-9W. i see ranges from 1/8th to 1/4th. Savvy mineral owners want the higher royalty. You might hear from some other agents. Bonus amounts are based upon today’s competition, so not useful to think about past amounts.
Bonus amount are not public, but you can get an feel for the amounts from poolings in the contiguous eight sections in the last 12 months. Luckily, section 6 was pooled by BCE-Mach at $850 at 1/8th, $600 at 3/16ths, $550 at 1/5th, and $0 at 1/4th(?).
You can choose to lease or wait for force pooling. If you choose to lease and are working with other family members, it is a good idea to get a good oil and gas attorney to review any draft lease as it needs major changes. Then all family members can share in the attorney fees and have the same language in their leases-takes you off the hook for a “good” lease as the attorney has the experience you lack. You can also wait for force pooling as it has its own advantages.
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This is probably not much help, but I recently leased in Caddo County for a lesser bonus with same royalty than I got about a decade ago. And, I got more than my cousins leased for on the same land. Not all lease bonuses go up.
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Thanks so much, Melissa. I appreciate the help. Phil
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@M_Barnes, thank you so much for the insight regarding the ‘resurgence’ in Section 7. It’s encouraging to hear there are multiple agents active there.
Since you mentioned that savvy owners should push for higher royalties and that draft leases often need ‘major changes,’ I had a few follow-up questions for my siblings and me:
- Royalty Targets: In your experience with current Caddo activity, is a 1/4th (25%) royalty realistic for a 51 NMA tract right now, or is 1/5th (20%) the more common ceiling?
- Essential Amendments: You mentioned the need for major lease changes. Besides a depth clause, are there 2 or 3 specific ‘must-have’ clauses you recommend for Oklahoma owners to protect against post-production deductions?
- Force Pooling: If we choose to wait for force pooling rather than signing a private lease, do we lose the ability to negotiate those specific protections you mentioned?
Any guidance on which operators those five agents might be representing would also be incredibly helpful so we can ensure we’re talking to the right people. Thanks again for being such a great resource for the community!
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1-20% is more realistic, but there are a few rare 1/4. Depends upon who you are dealing with and how many acres you have. Are you sure you have 51 acres? If you are going from an old lease, they have gross acres on them. Could be 51 if you kept the family minerals intact.
2-will let your attorney get you the right ones, but I am most concerned about no post production charges, depth clause, no warranty, limit shut in times to one year, commencement of drilling, no force majeure clause and about ten others.
3-Force pooling has its own protections under statute but they are different than lease ones.
4- Agents are usually silent on whom they represent. Lots of stealth leasing goes on until the operators are revealed. Some operators use multiple agents. One can get a good feel by who is filing the OCC cases. All of the current permits are by well known operators, so wouldn’t worry about it too much. You cannot control that part at all. Many of the operators are working interest partners in other operators wells.
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7-10N-9W is in Natchitoches Parish, not Caddo. Is one of the numbers incorrect, by chance? Location affects the bonus amount, which I’m sure you know.
1/4th is common in Caddo and I’ve never gotten less in Louisiana on any lease. Since things move so quickly, I would recommend nothing more than a 3 year primary with no extension. As far as leasing bonuses, I’ve never heard of sacrificing a bonus for a royalty rate (but I don’t doubt it’s happened), so you should definitely get something.
Important clauses in LA are the standard no deducts clause, which I recommend in every lease in every state, a pooling/unitization clause (almost everything is unitized in LA), a pugh/depth clause, and I also recommend including a notification clause requiring at least notification of operator changes, but you could also require your approval for an operator change if you want. If you own the surface, you want to protect that as well either in the OGL or a separate surface lease. And if you have any questions regarding the phrasing or meaning or intention, definitely get an expert opinion. Blanket statements like “all other products” or “any other…” are red flags, for example. Like Martha said, there are several others, so hiring a mineral manager and an oil and gas attorney might be a good idea. Just make sure anyone you hire has Louisiana oil and gas experience because the small nuances can make a big difference.
Good luck!
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There is a Caddo County in OK, so this thread belongs to it. However your clauses are important, so helpful.
Well you can tell which state I focus on most days. Ha! As always, Martha is the queen. Never question her. 
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You can certainly question before I have had coffee!
How about activity in/near Township 22-12N-13W?
There is leasing in sections 21 and 15 near your in 22-12N-13W. Staghorn has a permit in 28/33.
Have you heard of a company FANTUMIV LLC that is soliciting lessors?
We have an offer from them. The rest of my family signed but I am leery. Can’t find any information on him.
We had a lease initiated by Bearcat for Continental Resources about 10 years ago. Nothing ever came of that. I’m seeing people here mention recent offers from them. Do they ever revisit the same section?
Not personally, but that doesn’t mean much.
Bearcat is an agent that leases for various companies. Frequently for Continental. As to revisiting a section, yes, it can happen.
Thank you so much.
Myself and other family members received an offer to lease. They all negotiated for $800 per net acre 3/16 royalty. This is the first offer we’ve had in some time. My family all immediately signed and returned theirs. In the process of getting mine executed, I received 2 other offers. One for much less. The other says he’ll match the bonus and do 1/5 but I don’t physically have his in hand.
My first question is: If there is any activity in our section?
Second: I’m a little leery of the initial offer. I’ve researched the company name and I’m coming up empty. Has anyone dealt with FANTUMIV, LLC?
Third: We had a lease initiated by Bearcat for Continental Resources about 10 years ago. Nothing ever came of that. I’m seeing people here mention recent offers from them. Do they ever revisit the same section?
I am the last one of my family to sign and I don’t want to lose out but I also don’t want to make a wrong decision here because it not only affects me but my kids as well. Any advice would be much appreciated.