Mr. Liles is spot on. Although gas wells they’re producing oil which is the end goal. 21.5% is a red flag. That will be flipped to the operator at 22.5 or most likely 25%. You deserve 25% royalty and the bonus difference. The Landman is looking for a 3.5% overriding royalty which is likely split between multiple middlemen. We own in Washington Co so I’ll find out what the royalty and bonus is going for.
Clint is spot on with the Austin Chalk. Protect your depths. A good gas well can produce heavy condensate that equals oil that equals dinero. So many these days pass on areas because they only produce gas despite the fact that good gas wells equal oil even if in lower quantities.
Also to add provisions that eliminate post production deductions is a must. Texas case law has not benefitted mineral owners. However South and North Dakota have made no legal or statutory rulings. Although not a primary source, we could lobby with a favorable ruling citing those case law and legislative rulings to correct this injustice.