I own 58 acres in Henderson County, Texas. An oil company from Louisiana named OBENCO has sent a landman to lease my mineral rights. I have no knowledge on this matter. I’m not trying to get rich, but I don’t want to be the goat either. As I understand it, I own 1/4 mineral rights on my 56 acres which the landman refers to as 10 mineral acres? So he wants to pay us 2800 dollars for a 3-year lease with a 3-year option if they don’t do something in the three years. If they do, they get to keep the lease for free for the life of production? He did state I would get .0175% royalties based on production figures. Somewhere he kept referring to a “6” as part of this equation. I have no clue, but it seems like 2800 to get to put an eyesore well site on my property would be a stupid decision on my part? I just don’t know the lingo, the standard prices, or how to make a decision???
Henderson County! I was born in Smith but my family is from Brownsboro. Lots of Cotten’s there. Great Grand Dad had 21 kids.
Yes we are north of Athens. We own the 58 acres. I have no clue what surface acres are as opposed to acres? It is 58 acres old home place been in our family since early 1900’s. I have no clue about the block abstract or section. Where do I find that? I have a survey from a few years ago? Is it on that paperwork?
I definitely pay taxes!!! It’s one fenced-in block of land yet 2 tax receipts. The first says:
100% lot. TR 12B. Acres 56.666. AB 35 WM Avant sur.
The second says:
100% lot. TR 6A. Acres 1.654. AB 232. A Fancher sur.
That’s it but I still don’t know if it’s a good deal or not? Lol
So if everyone leases around me, and they hit a good well, why would they need my mineral rights if they are already getting what they need?
If they don’t have to lease from me, but put a well across the fence from me
Into a reservoir of oil that’s under 25 people’s property all around me they are still getting all the oil? Without having to lease from me? None of this makes sense.
A different guy working on behalf of Obenco is giving us $4,500 to place a new larger diameter pipeline across the place too? Why pay me again for an easement I sold them years ago? Seems like they need a bigger pipeline to accommodate more production? If that’s the case, does that mean they know it’s going to produce? Or is that a gamble on their part?
Seems odd to me that they would pay $4,500 to lay some pipe, but only $2,800 for the rights to the product that goes in the pipe?