You didn’t, William. In the top right corner of this page you can search “Quincy” and glean a fair understanding of what and who you’re dealing with here. Also, have you gone to “groups” at the top and joined the Cherokee County group? They may be able to help you some, too, having more info on that particular area. You came to a good spot to begin learning, especially with Wade Caldwell’s blogs and videos. Don’t let this one little thread discourage you, you’ll find lots of helpful people here.
I think you got it. Apples vs. Oranges.
Ignore the personal attacks and nonsensical postings. There was nothing in the thread that would discourage you. You don't sound discouraged. You sound grateful. It just goes back to personal motivations. Be wary also of any private advice. It would most likely be too slanted or biased to do you any good. Also might be more apples and oranges. Conveying to you that Cherokee and Panola counties are identical, or considered to be in the same hot area, would be one example. I think the production statistics on that speak for themselves.
Relating the terms paid in the hottest area of North Dakota probably didn't do you much good either. Fill free to counter with those though, but I already know what they will tell you.
William Horton said:
Hrm, I didn't mean to start a heated discussion. I really do sincerely appreciate all the information and suggestions, but I am also quickly understanding that none of this is a simple matter. Obviously, there are dangers in comparing apples to oranges -- but basically right now I am just trying to figure out what the relevant issues are. At some later point I can worry about the details, like whether I am looking at an apple or an orange ;)
thanks again for the pointers.
You're welcome!
The relevant issues? Typically, the lease grants the oil company the right to drill on the property. They will pay you a royalty in proportion to your interest, and factor in the amount of land that you have in the unit. The average oil unit is 40 acres where you own. Gas units are larger. The size will depend on the depth of the well. A primary term is stated in the lease, and the lease will be held beyond the end of the primary term as long as it is producing in paying quantities. Be sure to include a Pugh clause in the lease so that they can't hold any acreage beyond the end of the primary term that is not included in the unit. There are, as previously mentioned, both vertical and horizontal ones. Some other helpful clauses have been previously mentioned.
Deep gas wells are usually around 640 acres. Shallower gas wells might be 160.
You might find some good advice here as long as it doesn't get too extreme, or end up cutting you out of some newly found income.
Keep your head up and don't let anyone get you discouraged, or even make you think that you have been discouraged. You haven't been. You have been advised that terms, rules, regulations, etc... do vary from state to state, and from county to county. Not trying to discourage you that you will not get the top terms of the Bakken in N.D., or even Panola County, Texas. Just trying to inform you accordingly.
I believe that you are more informed now than prior to asking your question. Keep up the good work.
Fill your tank up with gas and feel free to ask for Bakken type terms. I'm guessing you might not get them. Keep us posted.
Dave Quincy said:
I think you got it. Apples vs. Oranges.
Ignore the personal attacks and nonsensical postings. There was nothing in the thread that would discourage you. You don't sound discouraged. You sound grateful. It just goes back to personal motivations. Be wary also of any private advice. It would most likely be too slanted or biased to do you any good. Also might be more apples and oranges. Conveying to you that Cherokee and Panola counties are identical, or considered to be in the same hot area, would be one example. I think the production statistics on that speak for themselves.
Relating the terms paid in the hottest area of North Dakota probably didn't do you much good either. Fill free to counter with those though, but I already know what they will tell you.
William Horton said:Hrm, I didn't mean to start a heated discussion. I really do sincerely appreciate all the information and suggestions, but I am also quickly understanding that none of this is a simple matter. Obviously, there are dangers in comparing apples to oranges -- but basically right now I am just trying to figure out what the relevant issues are. At some later point I can worry about the details, like whether I am looking at an apple or an orange ;)
thanks again for the pointers.
Good Luck William! Hope everything works out for you. Looks like you have a lot of info presented to maybe make it possible to figure out what to ask as those "right" questions. Hope you are able to find the wheat amongst the chaff and you are able to get the best lease terms possible. I forgot tell you about the NARO site that contains "generic" information. You need only to "Google" NARO to find it. There are some great videos there available to the public. I'm not sure if the organization is worth joining (I haven't made up my mind on them yet) but the public info is really good.
Sounds like Linton might be a great local resource of information. Again, Good Luck on your journey!
Steve
Heh, so even though this discussion has kind of been all over the place, it has definitely helped me get a better handle on what some of relevant issues are. So thanks for that! I've also now had the chance to read (although not super-thoroughly yet) some of the links under "Mineral Help" which has given me a better vocabulary for what to look out for. I'm going to talk to the landman again soon, and I have a started a short list of more specific questions to ask. Hopefully I'll let you know how it goes!
william
Good attitude, William. Wishing you the best. Linton
William, I want to apologize to you for my behavior here today. Dave and I have had this same kind of encounter in the past and I am ashamed of myself that I engaged with him at your expense. Again, I apologize, and please don’t feel you have to respond to this message, just know it is a heart felt apology and leave it at that. Linton
Is there really mineral interests in Cherokee County? We have not heard anything but we have moved.
Please update. We were actually thinking about selling the rights but they have been in the family since the 1920's.
Thanks, Margie Hamilton
Margieandcap
Linton Tomlin said:
William, I own mineral interests in Cherokee County, Panola County and Smith County. The area is heating up; I can tell you from first-hand knowledge and which is also obvious as evidenced by your family being contacted to begin with. I would be happy to discuss the area with you privately for obvious reasons. I will send you a friend request so that we may communicate privately if you so desire. Linton