Lease Offer from Oil company, then offer to Buy

General Mineral Rights Discussion
1

Hey y’all,

First this is an awesome resource I just found and the help and support here is amazing! I just recently received a lease offer from an oil company which was soon followed by an offer to buy. The buy offer is three times the bonus rate for the lease (which from my reading is kinda the low end for a buyout). I have non executive rights in the acreage and there are others that have rights in the same section. My question is, if the others are contacted and they agree to sell their portion and I decline, is there a chance I could be force pooled and lose out on the buy offer and the lease? In other words, could they just drill, extract whatever is there and I not see a dime of it? This is in the Permian Basin in Texas if that makes a difference.

Thank all of you kind souls and God bless!

2

If you could provide a Legal Description for where this interest is located, it’d help people on the forum give you their 2 cents. From what I’ve read on here, 3x the lease bonus “can” be a fair going rate. Really depends on the area.

3

If you have non-executive rights, then you would not normally be able to lease the minerals so an offer to lease is confusing. Other mineral owners would sign lease(s) and your non-executive-rights royalties would depend on the terms of the original deed creating the rights and/or the leases signed. Texas does not have forced pooling in the manner of Oklahoma and New Mexico. Valuation depends on exactly what rights you own and the location within a particular county your rights are located.