I am negotiating to lease several pieces of sections in the north east and north central areas of the county. There are several injection wells in the area (salt water on 1 and a CO2 on another). These are close to JAL. I have received several offers ranging from 6500 up to 8000 bonus. I really would like to know why I am suddenly being approached with good leasing offers. These mineral interests have mostly been available for lease for years -- then suddenly I have 6 different companies. What is going on? I have not heard anything outstanding . I am looking forward to the NARO meeting in Dallas next month and hope to discuss "the lay of the land" with fellow mineral owners.
I am west of jal in 24/34 and 24/35. The activity in this area is going nuts. I got 10K an acre bonus from Kaiser Fancis and 6K from others. all at 25% cost free royalty.
Section 10, T25S, R36E: Initial offer, $3500 and 20%. Final offer, $7500 and 24%. Bonus kept inching up, but royalty never went past 24%. New at this but have to start somewhere.
I've never seen anything past 25% which is the standard. What people really need to understand with leases is to get certain clauses in place. be real mindful of shut in clauses, they benefit the operator and screw the lessor. Also, make sure it's a no cost or really low cost, otherwise you are paying to treat, transport and market the product. Which should be the operators expense, but they are passing it along. Don't let the bonus money guide your decision, it's paltry compared to what will be produced, so get the higher % !
I’ll tell you why - me and my partner proved the acreage near the platform was good, bought all we could afford, identified the rest and then sold to a PE backed operator who then proceeded to go on a buying spree. Suddenly you have groups coming out of the woodwork after hearing the news. You may want to wait on leasing until after the fed sale and see what happens.
That, my grandfather always told me, is why God made lawyers and checkbooks and mostly in that order.
We inherited about 20 mineral interests spanning Texas, Oklahoma, and New Mexico and possibly others that we do not yet know about. We have been getting a checkerboard of royalties, but this is among the first lease negotiations we have done for ourselves. We found the older family members just accepted what was offered.
Thinking we could learn something, I sent the original offer letter and proposed lease to our O&G attorney. He said it was a 'good lease' to begin with, and he helped me tweak it a bit more in our favor. Using comments here, I did the negotiations for bonus and royalty as well as lease conditions myself. I am new to mineral rights but not to the negotiation process.
I found this forum and have been pleased with the organization, functionality, information content, and general sense of community.
I have learned that I always come out ahead when I stop and ask for directions. Thanks for yours!
what is the significance of the fed sale? What is its timing? Is KEW among the active folk? What is the location or legal description of the fed sale. Where is the platform? I apologize for the numerous questions; however, I live in Ca with no Lea county contacts or knowledge? Thanks in advance for your comments.
Congrats, good for you!
I have rights in that area as well. Would appreciate contact information for Kaiser Francis: Phone, Email, Web URL.
Really appreciate it!
Ron
they contacted me via a 3rd party landman. I wouldn't know who to contact with them directly.
Thanks. What is the Landman's contact information?
You would have that on the paperwork.
Really appreciate your help.
Ken, I have to wonder if you and I have the same expectations with this forum. General chat is fine but to me the major goal is to HELP SOMEONE OUT IF POSSIBLE.
I have asked several times for contact information for Kaiser Fancis. You of course have to have contact information, probably BOTH from the firm as well as the Landman you dealt with, yet that information has not been forthcoming.
Why not?
Are you afraid that I will cancel your deal or that they wouldn't want to possibly consider another deal? Of course both of these "problems" don't exist!
Once again, in the true spirit of helping, I would ask that you provide me with the requested contact information. If you don't for whatever reason want anyone else to see it (wouldn't understand why) you can Friend me and send a private text.
Will you help?
Thanks,
Ron