# Eagle Ford Shale - Oil & Gas Discussion archives
**URL:** https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517
**Category:** Eagle Ford Shale
**Created:** [February 13, 2011, 11:18am UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517 "2011-02-13T11:18:52Z")
**Posts on this page:** 15
**Page:** 8
### Author:  [@Robert\_Eardley](https://www.mineralrightsforum.com/u/Robert_Eardley)
#### Post date: [January 14, 2017, 5:23pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/141 "2017-01-14T17:23:37Z")
Doug, It is a fee that is part of the Severance Tax. It is part of the Crude Oil Production Tax that is collected and paid to the State Comptroller’s office which is part of the severance tax. Here is a link to the Comptroller’s site [Crude Oil Production Tax](https://www.comptroller.texas.gov/taxes/crude-oil/) hope this helps.
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### Author:  [@Jayne\_Burgin\_Stokes](https://www.mineralrightsforum.com/u/Jayne_Burgin_Stokes)
#### Post date: [March 23, 2017, 8:04pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/142 "2017-03-23T20:04:51Z")
Dimmit County - Mineral Rights Owner… What is the status of Gambit Oil’s former leases? … are they still held by the bankruptcy courts? My leases have expired with this now defunct company. Interested in receiving new leases. Any replies, much appreciated.
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### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [March 23, 2017, 8:11pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/143 "2017-03-23T20:11:54Z")
Not sure if they are still in bankruptcy but probably are. With no production on their wells (since May 2014) and term expired, looks like open season to me. Anyone wanting to lease your property will run the traps on all this to make sure that they can get a valid lease.
Here is the latest I can find on this / Dec 2016:
> **[Businessbnkruptcies.com Has Been Closed](https://businessbankruptcies.com/closed)**
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### Author:  [@Andy\_Lark](https://www.mineralrightsforum.com/u/Andy_Lark)
#### Post date: [March 27, 2017, 8:10pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/144 "2017-03-27T20:10:10Z")
Greetings! Does anyone know of the going rate for large water sales (for drilling and fracking purposes) nowadays in the Eagle Ford Shale area? (I’m in the McMullen/Live Oak County area of Texas, if it matters.) Water was selling, I believe, for 50 cents per barrel some years back. Many thanks for any information that you can please soon provide. Thanks!
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### Author:  [@Charles\_Newton](https://www.mineralrightsforum.com/u/Charles_Newton)
#### Post date: [June 24, 2017, 8:59am UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/145 "2017-06-24T08:59:44Z")
My brother and I own mineral rights in the JW Porter Survey, A-195, Burleson County. Brett Harris of Harris Land Co. contacted us concerning a desire to extend our lease for an additional 3 years with a 3-year option. He is offering $200/net mineral acre as a signing bonus with a 3-year option for $200/net mineral acre on behalf of Wildhorse Resource Development. We were able to attain $650/net mineral acre from Clayton Williams in 2014, so the offer from Mr. Harris is a sharp decrease in bonus amount. If possible, I would like to find out the “going rate” for other mineral rights owners in the area. According to [Wildhorse Resources MNGT Co, LLC Oil / Gas Wells and Leases | Operator #923453](http://www.texas-drilling.com/operators/wildhorse-resources-mngt-co-llc/923453), I’m almost positive that Wildhorse has 2 wells in A-195, so it seems like we would be justified in asking for an increase in bonus. Any input would be greatly appreciated. Thanks!
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### Author:  [@Michael\_T\_Vinson](https://www.mineralrightsforum.com/u/Michael_T_Vinson)
#### Post date: [June 24, 2017, 2:05pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/146 "2017-06-24T14:05:38Z")
Mr. Newton,
I am afraid that is a pretty poor offer. You are correct that there are several wells being operated on that tract. Most appear to be drilled in the Austin Chalk formation with marginal to decent production. One was drilled in the Eagle Ford formation in 2014 and is producing at over 3,000+ bbl a month.
If you don’t mind sharing, how many net mineral acres do you and your brother own in this tract? The more you have, the more leverage you will have.
I would think you could get well over $650 since that tract of land has established production. I am hesitant to throw a number out as I am unfamiliar with Burleson County and haven’t worked in the Eagle Ford for some time. A three-year lease is fine, but I would not do a 3-year option. A 2-year option may be reasonable if the operator has a lot of leasehold, numerous wells to be drilled, logistics of moving rigs, etc. Anything more is not reasonable. Anything less may be reasonable depending on the circumstances. But in your shoes, I would probably say no thank you to an option. As far as royalty, you need 25% because there is established production. You may decide to go slightly lower with a substantial bump in bonus. Last, make sure your terms are good.
Below is your tract, well the one right smack in the middle with “Porter” labeled on it.
Screen Shot 2017-06-24 at 8.35.18 AM.png
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### Author:  [@William\_Douglas\_Archer](https://www.mineralrightsforum.com/u/William_Douglas_Archer)
#### Post date: [June 24, 2017, 2:30pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/147 "2017-06-24T14:30:29Z")
Charles, I agree with Mr. Vinson that the offer seems low and I think that is obvious by their desire for six years of control via the requested three-year option. That option benefits the Lessee, not the Lessor. If the market were to crater, they will not exercise. If the market surges, you can bet they will exercise. Heads they win, tails you lose.
I have been doing 18 to 24 month leases and when I can I have inserted a drilling obligation. Failure to drill results in an additional payment to me in what has been about 50% of the additional bonus.
Keep the bonus as you might need to have an attorney encourage compliance as sometimes they fail to understand the definition of obligation.
Most recent Eagle Ford deal I did was 750 bonus, 18 month term, 25% cost free royalty.
Good luck.
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [June 24, 2017, 9:06pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/148 "2017-06-24T21:06:05Z")
Mr Archer, what County?
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### Author:  [@Charles\_Newton](https://www.mineralrightsforum.com/u/Charles_Newton)
#### Post date: [July 5, 2017, 2:13pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/149 "2017-07-05T14:13:20Z")
Mr. Archer and Mr. Vinson, thank you for replying to my message. I appreciate your extremely informative input. I was able to increase the bonus to $650/net mineral acre. Wildhorse (who acquired our lease from Clayton Williams) exercised the 3-year option which contained a 22.5% cost-free royalty. Again, thank you very much!
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### Author:  [@Sheryl\_Prestidge](https://www.mineralrightsforum.com/u/Sheryl_Prestidge)
#### Post date: [August 1, 2017, 6:25pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/150 "2017-08-01T18:25:07Z")
I have a San Miguel well for sale in Valley Wells please contact me if you’re interested.
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### Author:  [@Jayne\_Burgin\_Stokes](https://www.mineralrightsforum.com/u/Jayne_Burgin_Stokes)
#### Post date: [August 1, 2017, 7:49pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/151 "2017-08-01T19:49:48Z")
Adding to previous inquiry: 🙂Question: Does adding the ‘condition to drilling’ i.e VERTICAL Wells only - take me out of the market? Backstory: I have been in the Dimmit County ‘oil play’ for over 30 years & understand that my family’s acres are over the Buda and do NOT need to be ‘fracked’… therefore, I will request VERTICAL wells only be drilled - there has been one very successful vertical well drilled within feet of our property, however, it and the other acres were seized by the Bankruptcy Courts 3+ years ago. Thanking you in advance - Jayne Burgin Stokes
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### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [August 1, 2017, 7:53pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/152 "2017-08-01T19:53:24Z")
Limiting your lease to “vertical wells only” will take you out of consideration for any horizontal and usually frac’d well - which is the only way many horizons will ever be drilled by operators.
This would include the Eagle Ford, Austin Chalk (in most cases), Buda (in most cases / vertical Buda wells are a rarity), Pearsall Shale and shallow Upper Cretaceous sands like the Olmos / Escondido / San Miguel.
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### Author:  [@Ed\_Cuellar](https://www.mineralrightsforum.com/u/Ed_Cuellar)
#### Post date: [August 9, 2017, 8:24pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/153 "2017-08-09T20:24:31Z")
There was an article in the SA Express News last week about lawsuits in Eagle Ford regarding royalties. It also mentioned the issue of “drainage” as being part of the legal action. It has to do with wells on neighboring ranch being drilled so close to the lease line that it is the same as taking minerals from adjoining ranch. Not sure if it applies on my situation but I would like to hear from someone that may have more knowledge on this. I do have a Dimmitt County Ranch.
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### Author:  [@NARO\_Texas](https://www.mineralrightsforum.com/u/NARO_Texas)
#### Post date: [April 30, 2018, 5:30pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/154 "2018-04-30T17:30:51Z")
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### Author:  [@gem](https://www.mineralrightsforum.com/u/gem)
#### Post date: [May 3, 2018, 2:17pm UTC](https://www.mineralrightsforum.com/t/eagle-ford-shale-oil-gas-discussion-archives/1517/155 "2018-05-03T14:17:49Z")
I have mineral interests in subdivision I near Catarina Farms and would like to find a lease offer. Is there any activity in this area and, if so, what oil companies/landmen might be interested? Also, how much could I expect per mineral acre?
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