Considering a lease for Tx and questions

1. Terms state that the primary lease term is three years, and for as long thereafter that minerals are being found, and for "operations" are being conducted.... I am reading this forum correctly. What is required to be "free and clear" afterward - is this the Pugh clause I'm reading about?

2. There are three Tracts listed, so it sounds as though I should have separate leases for each tract? Do you agree?

3. I see no mention of the lease payment except a 1/4 royalty of the market value - but a verbal "general figure" has been mentioned...that sounds questionable to me, especially after seeing some of the figures in this forum - the figure mentioned is a fraction of what is mentioned here.

4. It sounds as though I should not agree to a warranty of title...correct?

Any help would be appreciated.


I have some questions before making suggestions. How many acres of minerals do you own? Are your three tracts adjoining (contiguous) and are they located in Dimmitt County, TX? Is there any drilling activity in your area?

Approx. 4.7 acre share of 417 Acres - They are listed in 3 Tracts in one subdivision. I believe they may be contiguous, although I am not certain from reading the description. I have searched this forum to see about drilling activity, and it seems there is plenty of leasing going on, but I haven’t seen anything about actual drilling and don’t know for sure how to obtain that information. I’m extremely new to this, trying to assist a family member. Thanks for your interest!