I have some previous wall comments regarding SWD that we signed a lease for in January.
Our family has been approached by Rosetta Resources through "New South Minerals, Inc."... I am assuming after doing research that Rosetta is the company (I have gathered some good info on them) and that New South Minerals represents their agent/landman assigned to complete this contract. (I am becoming better versed in this process, but still have more questions than answers).
We own 10 acres and will have a SWD area on our property by end of Summer, June or July, as long as the permit and construction move along as planned.
Our initial offer from Rosetta/NSM is $500/acre with a 20% royalty. From my research on this site and other areas I have seen that this is on the low side. My understanding is that we should see the royalty closer to 25% and the acreage is anywhere from $200-$3000/acre (and some cases I have seen $5000-6000/acre. We are not in a hurry and don't feel the need to settle for this first offer by any means, but as with SWD, we long to have something that resembles a fair offer. I have read both sides of the negotiation advice... Be patient and get a better rate... and don't be a hold out and lose out for yourself and other landowners that may be considered for a pool? Want to find somewhere in between.
I want to know my bargaining power here...
Does 10 acres make my bargaining power less or more?
Does having a SWD (Salt Water disposal) on my property make my land more attactive/lucrative?
Does being close to US 83 about 1 mile north of Catarina have any bearing on my leverage?
It seems like Dimmit County is heating up and Catarina is close to significant play...
I appreciate any discussion and while I don't want to cause people to share personal info or feel like you need to share your specific terms, I am just trying to get a feel before we begin negotiations w/ Rosetta/NSM. Feel free to private message me or enter into the discussion or email... PJWinRevival@aol.com
Thank you for any help,
Jeff Bullard
Winchester, IN