Howard County, TX - Oil & Gas Discussion archives


What township Suzanne? T1S…T1N…?


Marcus T. - I am in the NE quadrant. The bonus is double the second place offer which Is from a solid operator that is actively drilling in the area. I have some concerns about the source of the higher offer.


Does anyone know what the price of a npri in section 20 block 33 sells for now? Is there anything going on there?


Charlie, it is TNT, T&P RR Co/FM Coffee Survey


Charlie Opps it is T-2-N


Howard County/A-140/Section 25/Block 32 T1N new well north of me and a new disposal west of me in the last month. Still waiting for oil well



New member here with “the money question.”

I have a Mineral Interest described as follows: N/2 of Sec. 12, Block 32, T2N, Howard County, Abstract A-1687. There has been an offer to lease the rights for 3 years + 2 yr option to extend, paying a 25% royalty, with a bonus of $4K/nma. The offeree is a smaller player.

Is this offer on the high, average, or lower end?



I am trying to be certain that I have identified the correct lands:

NW/4 Section 30 (160.8 acres) Township 1 South, T&PRRR

SW/4 Section 31 (160 acres) Township 1 South, T&PRRR

can someone show me which abstract that appears to be?



Block 34. And I have no lease only NPRI.


Good Afternoon! Hope you can advise. My Great Grandmother and her 2 sibling retained 25% mineral rights to 297 acres in Howard County. There is one surface owner. Two wells have been permitted. The plat for the wells encompass the same 297 acres. How does the royalty work if I have no executive rights? I have an offer of $11,500 to sell. I really need the money but I don’t want to make a mistake. Section 18 T1S. Any help would be appreciated.

Thanks, Theresa


The surface owner is leased at 25% with no deduction clause.


Theresa, what block is your acreage in? $11,500 sounds pretty low, especially if you are leased at 25%.


Theresa is that $11,500 per acre or total?

  1. Essentially all new drilling in Howard county these days is horizontal and leases/sales should be priced with this in mind.

  2. IIRC, taking into account all in costs, price of oil, etc. allegedly a typical horizontal well can support a bonus price of $10-20K/acre. Presently, there is a sellers market.

  3. I have strong hands and can wait for my price. YMMV, naturally. I personally would not sell, but will lease, if and when. I would also ask for assurances that the property will be drilled, soon.


Theresa, I agree with Publius. I think there are better offers out there than what you have. However, I am calculating your interest to be 12.5 acres and not 75. I get that number by taking 25% of the 297 and dividing that by 3, because you mentioned that your grandmother reserved the interest with her two sisters. That leaves your grandmother with 25 acres and then divide that by two for you and your sister and leaves you with 12.5. I am also making the assumption that your grandmother did not receive her sisters portion and that you and your sister are her only heirs. With that being said your offer is only for 900 per acre which is very low. I would hold off and see if you can find a better offer. Feel free to PM if you have any other questions.


Total offer. My sister has already sold hers, wire transfer received.


Don’t know any of the details, but you might wish to consult with a local O&G attorney (e.g.) about what your property is really worth.

This seems far too low compared with offers we have received-- particularly considering the permitted wells, which means somebody thinks there is something down there. Sounds like you own the equivalent rights to 75 acres. Even several years ago, before the recent Permian boom, speculative leases (not even sales) were going for $500/acre. If I correctly interpret what you have, your offer is the rought equivalent of about $150/acre.

These days, $5K per acre is not uncommon. I have turned $10K +. Which is why the “per acre?” inquiry. But then, I don’t need the money (AKA, “strong hands”) and can afford to wait.

Understand that these people are businessmen and sometimes make really low-ball offers, just in case they get lucky. They are also experts in making people think they ought to sell NOW and to them. Then they turn around and sell the windfall to somebody else.


Thanks, Publius. I thought Bonus was paid to the land owner? Im asking for sales price per acre for Purchase of non-participating royalty interest. The parcel of land is 160 acres, so I believe an adjacent piece of land would need to be leased for a horiz well. I agree on the importance of contacting an O&G attorney. I am looking for one here in Austin, especially since I have some paperwork issues that need to be cleaned up. Do you think it’s important to use an attorney out there? I am also wondering how to find one without a conflict of interest, i.e., having an interest in himself or others buying the RI. Also, Teresa, I have nearly doubled the value of offers by soliciting competitive bids from several of the buyers. Still, I will be consulting an O&G attorney and perhaps an O&G accountant. I don’t believe I’d receive the true market value without doing that, particularly since I am a “just a civilian.”


Bonus is paid to the mineral rights holder, irrespective of the land owner. A typical production unit is 600-900 contiguous acres, more or less. This has to do with “allowables”.

Generally, production on the acres is “pooled”, irrespective of where the well actually goes. In Howard county, wells are typically drilled in a north-south direction.

If a mineral rights holder elects not to sign a lease, they can drill under his property, but cannot extract oil or gas. I.e., the cannot frack this section of the well. Normally, production companies will go to some lengths to avoid this.


Regina, to add to what Publius said, bonus’s are paid to the mineral owner who has the executive rights. If you have an NPRI that would mean that you are a Non Participating Royalty Interest owner. The Non Participating part means that you do not have the right to negotiate leases and receive bonus payments but will receive royalty payments when and if there is production. I hope this helps.