Lease Offer Dawson County Taylor County School Lands

The offer is FOR: Paid-Up Oil, Gas and Mineral Lease Dawson County, Texas Labors 1 and 2, League 4, of the Taylor County School Lands 3 Year Primary Term Lease @ $400.00 per net mineral acre 3 Year Option to Extend Primary Term @ $400.00 per net mineral acre 20% Royalty ($400.00 x 41.250 net mineral acres = $16,500.00)

Seems that other offers are higher in the area. This appears to be an offer for two pieces of land, roughly 240.00 gross acres for 41.250 net mineral acres How are mineral acres determined? What is pooling?

Thanks in advance for your input

Take Care

This was ini a trust that dissolved when my mother died. and he wants [There is nothing filed of record in Dawson County, Texas “record title”, bringing the title forward from your father, therefore we will need to obtain an affidavit to bring the title forward to present date.] Which I find odd. All of that was supposed to be handled already.

He further staes [If you are not satisfied with the current offer, please feel free to counter. The interest credited to you is based on record title into your father, and the confirmation from your cousins that you are his sole living heir, however, as stated, we will need an affidavit to formally vest the interest into you in order to get approval for funding your bonus payment/consideration for executing the lease.

These tracts are contiguous and therefore we lease them on one single lease. This is the industry standard.]

I would really appreciate input relating to this.

Eh you can put both tracts on one lease but I would include separate tract provisions language

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They claim that is not what they do. What is the benefit of doing it on two contracts?

Thank you very much for your response sir

Apparently there was a previous lease that I did not sign and there is money owed to me also.

Trying to muddle my way through all this your help would be most welcome.

Can you give me an example of what you are talking about? Sorry to be dense I assume you are speaking of a clause that excludes actions on one part of the lease? Not sure I follow.

If it were me, I would lease the two tracts independently. Just insist on it. You do not want them tied together. They can have identical leases.

Thank you for your reply

I am thinking in the following manner as far as a counter offer is concerned.

Separate lease per each property

No Pooling

3 Years

No Option to extend

$600 per acre

25% royalty

If any of you are following this and have an opinion on this please reply.

I also am not clear on how to calculate mineral acres.

Thank you in advance for your input.

Thank you very much for your reply

working on a few details

currently $600 and 22,5%

I agree with Oilman30. I always advise to push for 25% royalty. Whether bonus or royalty always go over the top and let them try to negotiate you down. If they are truly interested they do their best to work with you whether they act like it or not.

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our family also has leased land to cgs operating in the munger subdivision of taylor count school land. we leased out 244 acres. when i spoke to the man on the phone he informed me that 600 acres where needed to create a unit before any drilling would begin is this the industry standard. if so how can i find out if my neighbors have leased there land also

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This funded on the 13th 600 and 22.5%

sorry for the delay yes

They did not agree to this and stated that “It would be useless as singlel units.”

Oilman30, Any idea what is Oxy doing with the tens of thousands of acres of minerals it has leased in Gaines county? Has the acquisition of Anadarko stalled Oxy’s development plans in Gaines county?

I think the Gaines county stuff is under a different division [Permian Resources?]. Oxy bought Hess’ interest in a Gaines county field for $600 million, but additionally leased in areas with no existing production for what may be an unconventional EOR [Clearfork?] prospect which might employ experimental dual function injector-producer wells from what I have been able to gather.

I have another question that somebody might be able to answer. Do I receive mineral rights for all oil being pulled out of league 4 of the Taylor School Land in Dawson County? How far can oil be pulled out from operating wells?

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Bobby,

Depends on the size of the unit. If you are pooled into a large unit then that will be the basis for your payment. (Also will reduce your % ownership in the unit.) If you wanted a straight answer, you will get paid for the oil that is directly under the property that you lease thus the 244 acres of land covers your interest in the oil. Next step is to determine the % of ownership of that 244 then you can adjust what interest you will be paid if they make a 600 acre unit.

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