Inherited Mineral Rights. Live Oak County, Texas, Eagle Ford Shale

General Mineral Rights Discussion
1

I got a call yesterday saying that my two siblings and I own 10 acres of mineral rights in northern Live Oak County, near Three Rivers & Tilden, in the Eagle Ford Shale. The land was owned by my parents, who are now deceased, and was sold in the mid nineties but apparently the mineral rights were not sold and still belong to us. We were offered $1000 an acre as “bonus” money and will get a monthly royalty check as long as the well is in production. The well is complete but they are still installing the pipeline. It’s oil…not gas. The guy said he has been trying to find us since August of 2012. My question is SHOULD I BE EXCITED???

The lease contract papers are going to be sent to us next week so I have no idea what the royalty % payout is going to be. Is $1000 an acre a fair price for upfront money? What % of royalty will we be getting? Should we negotiate a deal for higher royalty payouts? I have no clue about anything and I must say that I am in complete shock.

Any information or advice would be greatly appreciated.

Kim

2

Yes, be excited. The bonus usually ends up being small compared to the royalties if you get a decent well. Have an attorney review the lease.

3

Thanks. By a miracle I had a new client come in today who is an oil/gas attorney who is going to go over everything with me when I get the paperwork. I can’t believe it! It’s like everything is falling into place. Do you have any idea how long it will for production to start?

5

Hello Chuck,

Sorry to butt in with an irrelevant question(you seem to know your stuff) my papa left us some mineral rights in Stephens co. Oklahoma sec. 26-1N-6W is anything going on in this area?

Any help will be appreciated,

Roger

7

Chuck,

My tract is a little under 3 miles from the horizontal drain hole. Is this good news?

8

Chuck,

It is the Matkin Sugarkane Unit in Live Oak County.