i have an Oil Company that would like to lease a tract of land in which i own mineral interest.
they are wanting to lease by "Sections". however its says it's only 191.20 acres of land.
can anyone give me some input on this?
Teresa:
This figure might be indicating your net mineral acreage. This is amount that you own even though the gross acreage would reflect a much larger figure. If a well was drilled on the area, you will be paid based on your net mineral acreage.
yes, net mineral interest are paid by met mineral acreages, but wondering by they are listing by "Sections" now on this 3rd contract. we have a small interest and will not receive much unless i can get them to cut out the clause where i have to pay part of the production/marketing. My grandfather has a lot of mineral rights all over North Texas and I want to make sure I'm doing the best I can for my 6 siblings and some of my cousins. i truly appreciate the replies as i try to wrap my mind around this.
First of all,even though you own the land,you may only own a part (or percentage) of the mineral rights.
For instance,I own 21.54 AC but own only 50 % of the mineral rights. A lot of time when the warranty or grant deed(title to the land)is transferred to the new owner they maintain a portion of the mineral rights.It's really a farce;if one owns the land,they should own everything beneath it.
A fairly standard lease in Culberson county,Texas ( I don't know where your land is ) is $350/AC , 3/16 royalty (your percentage once they drill ) and 3yr + 2yr lease. I've heard rumors ( no substantiated evidence ) of individuals who held out to the last minute getting $8000/AC and 1/4 royalty. Can't confirm this though, I live over 1500 miles away.
we don't own the land.......this contract in is Limestone County which is in the Bowie Texas area. On our prior contracts we received $500.00 per net mineral acre and 1/4 royalties to be paid by lessee. (which out of the $500, i receive my net mineral percentage which....is peanuts!)
however, i have added 7 clauses for Pooled, Payment due with late 12% penalty, no production cost unless..., mother hubbard, pooling limited by acres, request for all records pertaining to drilling. shut in royalty and no extensions.
this oil company has worked with me but i need to make sure im doing the best i can.
in this Contract they listed "Sections" which has concerned me because I dont want to make any mistakes for my family.
Teresa,
You may want to check your map. Bowie, Texas is in Montague County,
http://en.wikipedia.org/wiki/Bowie,_Texas
http://en.wikipedia.org/wiki/Limestone_County,_Texas
Clint Liles
Teresa Bell said:
we don't own the land.......this contract in is Limestone County which is in the Bowie Texas area. On our prior contracts we received $500.00 per net mineral acre and 1/4 royalties to be paid by lessee. (which out of the $500, i receive my net mineral percentage which....is peanuts!)
however, i have added 7 clauses for Pooled, Payment due with late 12% penalty, no production cost unless..., mother hubbard, pooling limited by acres, request for all records pertaining to drilling. shut in royalty and no extensions.
this oil company has worked with me but i need to make sure im doing the best i can.
in this Contract they listed "Sections" which has concerned me because I dont want to make any mistakes for my family.
yes, i know. i just said "Bowie Texas Area"- since my grandmother last house was in Bowie.
i do have mineral rights in Montague County but this contract is Limestone County School Land.
i apologize for not giving details.
Clint Liles said:
Teresa,
You may want to check your map. Bowie, Texas is in Montague County,
http://en.wikipedia.org/wiki/Bowie,_Texas
http://en.wikipedia.org/wiki/Limestone_County,_Texas
Clint Liles
Teresa Bell said:we don't own the land.......this contract in is Limestone County which is in the Bowie Texas area. On our prior contracts we received $500.00 per net mineral acre and 1/4 royalties to be paid by lessee. (which out of the $500, i receive my net mineral percentage which....is peanuts!)
however, i have added 7 clauses for Pooled, Payment due with late 12% penalty, no production cost unless..., mother hubbard, pooling limited by acres, request for all records pertaining to drilling. shut in royalty and no extensions.
this oil company has worked with me but i need to make sure im doing the best i can.
in this Contract they listed "Sections" which has concerned me because I dont want to make any mistakes for my family.
Teresa,
Now that makes sense.(Limestone County School Land.) hahahahaha
Thanks for the clarification.....
Clint Liles
Teresa Bell said:
yes, i know. i just said "Bowie Texas Area"- since my grandmother last house was in Bowie.i do have mineral rights in Montague County but this contract is Limestone County School Land.
i apologize for not giving details.
Clint Liles said:Teresa,
You may want to check your map. Bowie, Texas is in Montague County,
http://en.wikipedia.org/wiki/Bowie,_Texas
http://en.wikipedia.org/wiki/Limestone_County,_Texas
Clint Liles
Teresa Bell said:we don't own the land.......this contract in is Limestone County which is in the Bowie Texas area. On our prior contracts we received $500.00 per net mineral acre and 1/4 royalties to be paid by lessee. (which out of the $500, i receive my net mineral percentage which....is peanuts!)
however, i have added 7 clauses for Pooled, Payment due with late 12% penalty, no production cost unless..., mother hubbard, pooling limited by acres, request for all records pertaining to drilling. shut in royalty and no extensions.
this oil company has worked with me but i need to make sure im doing the best i can.
in this Contract they listed "Sections" which has concerned me because I dont want to make any mistakes for my family.