Gail,
Thanks for the Goodrich address.
We are three counties over in Avoyelles Parish, Louisiana also in the Tuscaloosa Marine Shale. Our two offers are $300 per acre for first 3 years lease, with one offering $200 per net mineral acre, on a 3 year extension & other offering $300.00 per acre for a 2 year extension.
On the “Basic Contract” nothing was offered when a well finds oil, or gas. But have had both Landmen make offers: one offering $10,000 bonus check & other $25,000 bonus check.
Are still reviewing our options.
Diane,
Is the bonus check of $10,000/$25,000 in addition to royalty payments? Or is it instead of royalty payments?
We were offered 1/5 royalty payment on production from our net mineral acres.
Thanks.
Will
Sounds like average of what I am hearing. Why wouldn’t you lease? They will drill anyway.
Diane Kelone said:
We are three counties over in Avoyelles Parish, Louisiana also in the Tuscaloosa Marine Shale. Our two offers are $300 per acre for first 3 years lease, with one offering $200 per net mineral acre, on a 3 year extension & other offering $300.00 per acre for a 2 year extension.
On the “Basic Contract” nothing was offered when a well finds oil, or gas. But have had both Landmen make offers: one offering $10,000 bonus check & other $25,000 bonus check.
Are still reviewing our options.
My advisors tell me 1/4 is the right number.
Our bonus offers have come in at $275 and $325 per net acre with a 1/5.
It is very early in the development of the TMT. Holding out could bring rewards as competition increases depending on the output sustainability of wells like Horseshoe 10H and Anderson 17H and 18H.
I’m told EagleFord is a similar play and is generating $2000+ per acre and 1/4. Patience could bring a worthwhile reward.
Thanks for the blog candor.
Will Latham said:
Diane,
Is the bonus check of $10,000/$25,000 in addition to royalty payments? Or is instead of royalty payments.
We were offered 1/5 royalty payment on production from our net mineral acres.
Thanks.
Will
To my understanding of all this crazy legal talk: The $25,000 is to the surface owner for the lease of the 5 acres under and around the oil rig, only after the rig finds oil. So… Make sure that it is clearly stated in your Exhibit “A” that the Lessor (land owner) is the “Surface owner,” NOT Lessee.
To answer the question, this check is a lease of surface land and separate from any royalties.
Am learning as I go,
Diane
Will Latham said:
Diane,
Is the bonus check of $10,000/$25,000 in addition to royalty payments? Or is it instead of royalty payments?
We were offered 1/5 royalty payment on production from our net mineral acres.
Thanks.
Will
Is there any clause in your lease for damages on the surface? Or, is that what this is for?
In Mississippi there are no surface damage laws that I know of. The mineral owner can use as much of the surface as reasonably necessary to explore, drill, extract his or her mineral therefrom. Mississippi adheres to the split estate rule, which means the surface and the subsurface can be owned by different owners. The surface estate is the servant estate and the subsurface estate or mineral estate is the dominant estate. I was given a tip concerning a lease I received from KEW drilling co.? I was told to (Make Sure The Lease Had A Pugh Clause).
What is the Pugh Clause?
Just simply do an internet search on Google? Google (Pugh Clause) and proceed to read? It’s a clause used in oil and gas leases and mineral leases.
Leased several months ago, $275 acre, 20% royalty.
Hope you had a Pugh Clause?
ANTHONY MARGIOTTA said:
LEASED SEVERAL MONTHS AGO, $275 ACRE, 20% ROYALTY.
NOT TO WORRY....
Antony, do you mind sharing info on the company that granted you that pugh clause? I would like to talk to them. If you don’t want to post the info: send it to me by email: horton.minerals@gmail.com. Thanks.
YOU WERE RIGHT! THANKS FOR YOUR INSIGHT.
Antony, do you mind sharing info on the company that granted you that pugh clause? I would like to talk to them? If you don’t want to post the info: send it to me by email: horton.minerals@gmail.com. Thanks.
NOT TO WORRY…