Hello, I bought some mineral rights from a friend today. They are in Columbia County, AR and they are:
- Undivided 1/6 interest in 166.83 acres
- Township 16s, Range 20w, and sections 8, 9, and 17.
The sale included the lease that my friend (the Seller) signed last year that the landman involved explained only pertains to a subsection (28.24 acres) of the 166.83 total interest involved, so my portion in that lease is around 4.66NMA. No well has been drilled to this point.
I have a couple of questions:
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When I spoke to Albemarle about an old brine lease that the Seller had, I was told that the lease is no longer active. But he also told me that once I buy the minerals they (Albemarle) may be interested in leasing from me so call him back. I’m not seeing much activity in these sections oil/gas-wise, so might it be worth pursuing this possible brine lease? If so, are there guidelines on determining a fair deal on a brine lease? Am I wrong to assume that brine leases and oil/gas leases are either/or propositions?
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Regarding the active oil/gas lease (the 28 acre subsection of the 166 acre whole), is a 1/6 royalty rate on the oil produced and gas sold pretty standard?
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Do you recommend actively reaching out to other companies etc.?
Any input is greatly appreciated! Nick