Lease Offer Feb 2019

We’ve received a lease offer this week from CGS Operating, LLC. Our mineral interest is the north half of block 36, section 25, T5 N. We were offered a leasing bonus of $450/A and a 20% royalty interest. We think this should be raised to 25% since they are requesting an option.

We were wondering if others were receiving lease offers and if this was a good offer.

We recently received a similar offer from CGS not too far from here. Has anyone else been contacted by them? $450/acre for 20% royalty seems fair according to my son who works in the industry.

We refused all offers because he did not offer 25% royalty. If you study documents on, you will see that 25% royalty offers are common on those OGLs most recently posted. We told him we would not accept anything less than that for which we last leased, which was $500/A, 2 y option and 25%. He eventually offered either $550/A, 2 y option and 22.5% or $500/A, 2 y option and 23%. We did not accept these offers.


Whats the email address of the person at CGS you were talking with? We have been cleaning out all of our letters and seem to have misplaced that one! I must have put it in the trash pile :frowning: Thanks for your previous response by the way!

I posted telephone number and then deleted. Should never have posted a telephone number on the internet. Perhaps you should send me a way to contact you directly.


Where is your land located? Received similar offer and want to see if it is fair or not.

League 285. How about you?

Yes, received a voice mail from CGS Operating about my Mineral Rights in Dawson County, Tx. Haven’t spoken to anyone yet. Researching to see if this is a Legitimate Co. My family leased these Mineral Rights many years ago, lease long expired. Don’t know what current OGL’s terms established at? What’s best way to research this Company?

If you go to you can search Dawson county and see 4 pages of leases filed this year by CGS Operating. You might contact one or more of the lessors and ask how it was to lease to CGS Operating.

I will do that. Thank You.

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I am working with a client on a lease offer from CSG Operating. Her acreage is in League 278. I have not researched the company yet, but they seem active in Dawson County right now. did you find out anything?

CGS Operating is working for EOG. Company has a $50B budget for 2019. Suggest leasing to then only and not selling. They will make good wells in the area.

Correction*** $6.5Billion budget for 2019

Sorry about highjacking this thread but Oilman30 may be able to answer what Occidental/Oxy is up to in Gaines county? Will the Anadarko acquisition negatively affect Oxy’s plans for Gaines county?