Hello,
Received a lease offer on a parcel A-1070 in Dimmitt County Texas...wondering if anyone has anything close that we may compare numbers to. They are offering 1,500 an acre and 5% royalties. From what I can tell , there are a few producing wells close to this parcel, just curios what is ther going rate around their as this is all new to me, just got the first call last week. Thanks for any help you guy's may have..Dave
Also, a second question, as this land was originally owned by my great grandfather, and heired to his offspring, which included my grandfather. After his passing it went to my father and his brother who are both now deceased. Now they are saying it goes to my two brothers and I. My father left a second wife as survivor, and I was wondering if she has any claim on these rights. I have read under the Texas marital law that property obtained prior to marriage thru either gifting or decent is considered " separate property" , but wondering if any one has any experience with this scenario..thanks
David
Bonus money may not be bad. But 5 % royalty is not good most leases in our area are 25% royalty. I do a Lille digging on your parcel. And don’t take my word I am not an expert. Just a mineral owner and trying to learn all I can.
David
RRC website shows lots of activity around your parcel. Do a lot of research before you lease. 25% and looks like the bonus may be low also judging from the activity around you. Look at the bottom of the mineral rights home page there is a video of how to use the RRC website. Good luck to you.
Thanks for the reply, and I did get on the RRC website last night and I have been on it for the last several hours printing maps, well locations etc. I am going to check into the wells around me for production numbers and talk to my brothers...it just seems like this guy is being pushy wanting us to sign lease agreements and tax forms and I have not even caught my breath yet, as all of this is news to the family. I will be doing my due diligence and see where it goes from there, thanks again for your input. Dave
No expert here; however, IMO, this is time for a deep breath and a long hard look. Don't like to pass up something that might turn out to be good; but, from what you have said, I believe I would tell this gentleman to "take a hike"! The bonus number may or may not be O.K.; however, it looks to be quite low for your area. The royalty percentage is worse than taking a good hard slap in the face. Must think he has really found a sucker, even 12 1/2% went out over 30 years ago along with $5-$9 oil.
Get some expert help before signing anything. A few bucks on an attorney is the best money you will ever spend.
But, again, IMO, with that said, wasting money on an attorney with this guy is probably a waste of time as well as money!
Good luck.
I doubt you would even get paid the bonus unless this yahoo could assign your lease to someone else for more cash and a healthy override first.
The name on the lease agreement is Stonegate Productions, LLC...from what I have researched on the RRC website they are obtaining new drill permits all around my parcel, as indeed I am in the process of looking in depth into every thing I can, as I stated a week ago I had no clue what Eagle Ford Shale was, now I do and hopefully I can make sense of it. Thanks for the replies, much appreciated
David -
I am not an Attorney and you should always consult one when negotiating these sorts of things.
In answer to your question regarding your father's widow, it is my understanding that depending upon when your father passed away (I believe it is after some date in 1975, but would have to look it up) she may have a claim to a 1/3 Life Estate in any Separate Property you father owned.
That may include the subject Mineral Interests.
Also, I am pulling together a few maps and spreadsheets for you on your area. Will send a link to them under separate cover.
And I'm looking around for some maps and other information I put together on the Eagle Ford a couple of years back for you. It's been quite a wild ride the past 5 years or so!
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
David -
Here's one thing for you to consider and to review with your attorney. It's a lease form a Mineral Owner drew up with the help of her attorney for a tiny amount of interest in the Eagle Ford. One of the best I've ever seen and I've been in the industry for some 35 years!
http://www.hightail.com/download/elNLYnV4Z1A5eFdHR3NUQw
Hope this helps!
Charles
David -
My preliminary review of your area indicates to me that you should start getting pretty darned excited. Just don't sound that way on the phone with Stonegate.
I need your legal description in order to determine where your lands are located in relation to the unit boundary lines. I have a map or two of the area I can send you if that would help.
Once I can draw that in, I can complete a report for you showing you what's happening on the ground. And it's a lot!
If you would prefer to send your legal description to me privately, accept my offer to become A Friend on The Forum and send it to me that way.
Hope this helps -
Charles
Charles Emery Tooke III said:
David -
My preliminary review of your area indicates to me that you should start getting pretty darned excited. Just don't sound that way on the phone with Stonegate.
I need your legal description in order to determine where your lands are located in relation to the unit boundary lines. I have a map or two of the area I can send you if that would help.
Once I can draw that in, I can complete a report for you showing you what's happening on the ground. And it's a lot!
If you would prefer to send your legal description to me privately, accept my offer to become A Friend on The Forum and send it to me that way.
Hope this helps -
Charles
Thanks for the info. It does seem that there is a lot of activity around our parcel, quite a few new permits in the area. I will send over the specific info and we can go from there...thanks
Mr. Tooke, Would you consider sharing the lease form you posted above in the recently established "Fair Lease Project" thread? http://www.mineralrightsforum.com/forum/topics/open-source-plain-en...
Mr. Buttles, Did Stonegate sweeten the royalty offer? Was the 5% royalty mentioned in the initial post a typo?
Charles Emery Tooke III said:
David -
Here's one thing for you to consider and to review with your attorney. It's a lease form a Mineral Owner drew up with the help of her attorney for a tiny amount of interest in the Eagle Ford. One of the best I've ever seen and I've been in the industry for some 35 years!
http://www.hightail.com/download/elNLYnV4Z1A5eFdHR3NUQw
Hope this helps!
Charles