Friday, Texas Mineral Lease Activity

Hello all, new to this site, I was contacted Sunday, July 26, 2015 by a landman but I have not seen the contract yet (It's in the mail). I have a place behind Friday church. He offered 1/5 royalties and a signing bonus of 200 an acre I think. From reading these post on here, it seems low. I can give you more info when I get the contract if you need the info. The area is A-22 I think. You can locate the property by using google maps, put in "The Rock Pit, Texas" and the rectangular piece of property the pit is on is mine... Any suggestions, advice, help would be much appreciated!

Thanks in advance! Richard

Don't lease for less than a 1/4 and at least $600 or more per acre. The play going through the area is mainly a Buda and Glenrose Play using horizontal drilling. Try to get a 3 year lease and no two year option.

Don't give in.

Thanks! Will do!

Try to find out what position you are in. If you are in the middle of a block or some other strategic location you may be able to negotiate. If the company can lease all they want at 1/5 and you are on the fringe, you could get passed over if you try to hold out for too much. I've seen it happen many times. Also, it would be a good idea to familiarize yourself with the benefits and risks of not leasing.

Unless you are very familiar with O&G leases you should hire someone who is. There is a lot more to the value of these leases other than royalties and bonuses. You can bet the lease they present to you is more in their favor than yours. My place is 3 miles west of you and is leased with ZaZa. PM me if I can help any.

I received the contract, they are paying $300 net acre, and 1/5 royalties. The land man is Stephen J Williams, from Waypoint Exploration, LLC. I did a Google search and did not find much about the company.

My area is Arthur Henrie Sy., A-22, Trinity County Texas. Anyone know of a drill permit nearby?

I have lined up to see a lawyer this week.

Mr. Burda, Get the landman to answer a few questions and do things a certain way. These are some of the things I begin with.

1. Get his name and all telephone numbers along with his email, website address along with the company and Lease Broker he is representing. If he won't reveal that you don't need to be dealing with him.

2. Get him to email you the proposed lease in editable form along with the company that is wanting to lease it's website. You must know who you are dealing with. If you get this information by email you can send it to your attorney, family and have copies of the information.

3. You need him to tell you, in writing, how many "Net Mineral Acres" along with the Survey, Abstract Number along with a plat or map of what the lease will cover.

4. Do not agree to a time frame, terms of the lease until you know how and when you will be paid. "No Check, No lease signing". Do not sign until they have your money period!


I think that is great that you have someone interested in leasing your minerals. Some of the people who comment on these forums do not have a dog in the hunt, some of them do, and the others just want to stir things up. If you have unrealistic expectations you will end up with nothing 99% of the time or the company will drill their well and go around you. Go with a company that is going to drill and will give you a fair lease. Don't be a horses ass or it will come back to bite you every time.

Oil prices are 1/2 of what they were in 2013 and so are the lease bonus prices. Be glad you have someone interested and make the best deal you can!!