Eastland County, TX - Oil & Gas Discussion archives

Oil & gas discussion group for those interested in Eastland County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

As anyone had a lease offer come through the door? Taylor and Nolan are getting a lot of action.

Our family has had a Seismic Option request letter for our mineral rights in Rio Vista area.

I hear the courthouse in Eastland is loaded with land men.Anybody know what section of the county has most of the action?

I have mineral rights in the T. A. Howell Survey, Eastland County, Texas. Does anyone know of any activity in that area? It was a marginal oil producer prior to about 2002.

I heard that the first couple of Cline Shale wells over in Mitchell County were low producers, around 250 bbls/day initial production. That may be driving renewed interest in Eastland County.

Have had a lease offer in Eastland County. This property was my greet grandparents and our family still has the mineral rights. Close to Abilene and Pioneer, I believe. Still has 1 oil well active, but produces very little. They want to drill 1-2 more wells. Was wondering if their offer is comparable to what others are getting. Live in Houston and have no real idea of what all is going on in the area. The offer is $2000 to each of the 8 owners. The property is 164 acres. Then there is $1500 for each battery something. Don’t know what that is. It is a 3 year contract. Any info would be appreciated!

$100/ acre? Royalty rate?

Thanks Wade for commenting. Royalty rate is 1/8, which I have read is the minimum allowable. Nothing per acre. States in the first line “for ten anymore dollars” lessee has the right todrill basically. Further down states "lessee shall pay $2000 to the surface owner prior to the commencement of drilling operations. Additionally, lessee shall pay $1500 for each tank battery location."is surface owner and mineral right owner the same thing? Anyway, this is the only money they are paying in this lease. Doesn’t sound very good to me. So that is why I am trying to find out more about the market therefor these leases. Thanks again?

Now that I read it more closely, it does not say $200 to each of the owners.

Meant $2000.

Upon further research, I learned that surface owner is the land owner so we are not being offered anything except the 1/8 royalty.


I don't know if I understand your offer clearly, but it sounds too low. Offers usually have three components, the royalty rate, the bonus in terms of dollars per "net mineral acre", and whether the royalty is free of deductions. And this is just the beginning, as the lease form makes a huge difference.

Hi Wade, no “bonus per ‘net mineral acre’”. 1/8 royalty only. “To deliver to the credit of lessor free of cost, in the pipeline to which it may connect it’s wells, the 1/8 part of all oil (included but not limited tocondensate and distillate)produced and saved from the leased premises”. 1/8 of gross proceeds received for gas sold…but no more than 1/8 of the actual amount received by the lessee. If no production or shut in, can pay $1 per year per mineral acre to keep lease in effect. Can do this one time only, so I think that is good. Sounds like it is free of deductions, right? Third part says, “To pay lessor for gas produced from any oil well and used off premises, or for the manufacture of casing head gasoline or dry commercial gas, 1/8 the gross proceeds, at the mouth of the well, received by lessee for the gas during the time such gas shall be used, said payments to be monthly”. So that’s it basically. Have been doing quite a bit of research online and am beginning to think that this lease needs to be negotiated. Also want to know to know what makes them interested in drilling at this time. Do you know what is going on in this area? Know there is a lot of activity in surrounding areas, but looks outside the Cline and Barnett Shales. My aunt, who is also an owner, has land with wells in the Barnett Shale area outside Fort Worth. Although she is in excellent health, she is 90 and not that interested in really negotiating for the best deal. There are a total of 6 of this as the mineral owners of this property. Got on this forum to explore the offers, if any, that others are getting. Also wondering if we should explore other drillers. Well, I know I got a little long winded. Lol! But thanks for listening! Again, your comments are very much appreciated.

Hard to say whether it is free of deductions without seeing the entire lease.

1/8th is too low. There is some activity in Eastland County, although more on the leasing side than the drilling side right now.

I am concerned about ownership of mineral rights. Most of are from owning surface rights. Mine is from a document of ownership for investment in undivided mineral rights. Landsmen advise regarding the document is it was written regarding only the existing leases, but that would be a lease agreement. An ownership agreement is ongoing until ownership changes.

Am I correct?

DFG Energy gives every indication of a company that is closed. They do not answer the phone and their taxes in Eastland County have not been paid.

Where are they?

The following is a sponsored (paid) promotional notice:

If you own minerals in Texas or New Mexico, consider attending the NARO – Texas convention in San Antonio July 18-20, 2018. They have a great agenda, good speakers, and the cost is reasonable. This year also includes a special session for New Mexico mineral owners. The current agenda draft is attached, and a link to their signup and information page is http://www.naro-us.org/event-2824234

Attachment: 2018-04-30%20-%20NARO-TX%20Convention%20Agenda%20%28Hyatt%29%20invite.pdf