Hey Wes,
You are exactly correct. All lessors should be mindful of : cost free royalty or net proceeds language,Pugh clause ,Depth and horizion release at the end of the primary term,the actual term and option too extend,pooling,mother hubbard and warranty among many . Thanks again for your input. I have seen check detail that that deductions for different costs from 20 too 40 per cent.
What about line loss that some gathers deduct for ?
Have a good day, David
Wes Luke said:
Hi David,
I sincerely hope you're paying a lot of attention to other things in the lease besides bonus and royalty. You can lose many thousands of dollars with processing, producing, delivering of your minerals. Never mind that little clause that says you warranty deed. All those pesky details that the average bear doesn't have a clue about. How do I know? I have one of those leases that is eating my profits at every turn. Too bad I was ignorant when I thought I knew what I was doing. Have a great day.
Yours,
Wes Luke
Hi David,
It sounds like you have some experience with leasing and don't need any help. I may be a little out of line helping people who don't ask for it, but, if I can help someone and keep them from making costly mistakes I feel it is worth the trouble. After all, we're all in this together and knowledge is what this forum is for. Thanks for your reply. Have a great day,
Yours,
Wes
Hey Wes,
No problem. We all need too help each other. I have some experience , but I'm not an expert. The learning process continues. Thanks for your reply. David
Wes Luke said:
Hi David,
It sounds like you have some experience with leasing and don't need any help. I may be a little out of line helping people who don't ask for it, but, if I can help someone and keep them from making costly mistakes I feel it is worth the trouble. After all, we're all in this together and knowledge is what this forum is for. Thanks for your reply. Have a great day,
Yours,
Wes
Medic 44 - If you don’t mind telling me what is the name of your lease or your lease number if they drilled? EOG has drilled on my family property in Forestburg and didn’t get that much.
R Edward said:
I have 19 net acres out of about 120, two miles nw of Bowie, are they still offering 600 to lease with 3/16th ? , also, what are they offering to actually purchase the minerals. ? $ 1000 a net mineral / more ?
Medic44 said:
EOG offer on our table... if oil for you, we have roughly 40acres 1000K acre 25%royalty ..... the oil companies always start out low.. had a family member on other property signed up for way less... did not have a lawyer and is on a contract that they may not be able to get away from about a 4-6 million setback over the life of the well... so get a good lawyer too....