I own about 500 acres of land in North Central Kansas. I inherited it from my father. When he bought it there was a 1/2 mineral reservation for 10 year (1985) and 1/2 production. There was no activity until 2010 when I leased my land for one year with a $7/acre bonus. So far no problem. I did lease my land to a cousin (who is now my former surface tenant). They paid me $5/acre for seismic exploration. When I signed the contract for that (a separate company from the leasing company) they aggreed to pay me $5/acre. I specified in the contract that if they did any surface damage they were to compensate the surface tenant. In this case they did no viable damage but the surface tenant demanded all of that $5 payment from me and I turned him down flat. He threatened to sue me but nothing came of it. In our written lease it made clear that mineral rights were not leased to the surface tenant. This among other reasons I have a new surface tenant. I have seen the exploration companies really do damage but not in this case. I imagine if I had a better relationship with my tenant we could have work out but I was stuck in a 3 year lease with this person (surface tenant),. Was I right? My atorney (who has done a lot of work in the O&G lease area) recommended just a one year lease with an option to renew for 3 years which they did not renew the lease. Also I hear they are going to drill close to south property line on my neighbors. What do I do I need to watch out for?
Any ideas out there???
Where is the property at? I might be able to shoot you some ideas.
What do you mean watch out for. Are you worried about mineral trespass
Phillips Coutny Kansas
Matt Edwards said:
Where is the property at? I might be able to shoot you some ideas.
What would constitute mineral trespass?
Brian Stamps said:
What do you mean watch out for. Are you worried about mineral trespass
Do you remember who did the seismic?
Matt- Lockhart Geophysical
Mark,
How many acres do you have and is it still unleased?
Mark Hogan said:
Matt- Lockhart Geophysical
None are leased now around 300 acres
I would have very clear surface provisions, and the nice thing about the play in ks is it a horizontal play which the well spacing is 640a so you could very possibly not even have a well on your property but possibly an adjoining property in which you are pooled. If you would like further advice on any production companies feel free to msg me. I have worked with many of the largest working the Ks play. We have leased over 1.5 million acres in the area and I am now leasing another large undisclosed area in ks. I can tell you now that your bonus is the lowest offer I have seen in 3yrs in KS.
Tom,
you said "I have worked with many of the largest working the Ks play. We have leased over 1.5 million acres in the area and I am now leasing another large undisclosed area in ks"
Who leased the 1.5 million acres? a single client or many gascos? over what period?
Wilson
Three clients actually, But Sandridge held the most acreage.