# Looking for direction
**URL:** https://www.mineralrightsforum.com/t/looking-for-direction/10161
**Category:** Panola County, TX
**Created:** [June 17, 2014, 10:41pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161 "2014-06-17T22:41:24Z")
**Posts on this page:** 7
**Page:** 1
### Author:  [@Jason\_Grace](https://www.mineralrightsforum.com/u/Jason_Grace)
#### Post date: [June 17, 2014, 10:41pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/1 "2014-06-17T22:41:24Z")
Hello, I recently inherited 100 acres split with my 2 brothers on mineral rights. It’s located in Andrew McFadden Survey A-423. Two weeks ago I received an offer for $500 an acre and 1/5 royalty to lease on a new well from a landman. My brothers immediately cashed their checks and signed his contract. I feel I should do some due diligence and was hoping for some advice. I am really new to this, any advice would be welcomed.
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### Author:  [@William\_Douglas\_Archer](https://www.mineralrightsforum.com/u/William_Douglas_Archer)
#### Post date: [June 18, 2014, 8:46pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/2 "2014-06-18T20:46:35Z")
Jason, you might want to check the railroad commission website on the GIS Map and see if there is activity around your tract.
I would think you would want a 1/4 cost free royalty and whatever the best bonus payment you can get on certainly no longer than 3 year lease term and depending on activity you might want it shorter so as to encourage development.
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### Author:  [@Jason\_Grace](https://www.mineralrightsforum.com/u/Jason_Grace)
#### Post date: [June 22, 2014, 7:26am UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/3 "2014-06-22T07:26:40Z")
Thank You William, I did. It seems there may be but I’m not quite sure what I’m looking for. I will work on the 1/4 angle. What does cost free mean? Thanks
William Douglas Archer said:
Jason, you might want to check the railroad commission website on the GIS Map and see if there is activity around your tract.
I would think you would want a 1/4 cost free royalty and whatever the best bonus payment you can get on certainly no longer than 3 year lease term and depending on activity you might want it shorter so as to encourage development.
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### Author:  [@William\_Douglas\_Archer](https://www.mineralrightsforum.com/u/William_Douglas_Archer)
#### Post date: [June 22, 2014, 3:39pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/4 "2014-06-22T15:39:20Z")
Costs has to do with the deduction of costs that the oil company is allowed by the lease to offset against your royalty. Cost free is intended to not allow any costs other than severance taxes to be taken from your share.
Assuming you negotiate a 25% royalty, I firmly believe the costs of processing, transporting, enriching, etc. are part of what they are getting in the 75% you are allowing them to have. You also will want to determine where they intend to drill. Is it on your 100 acres or adjacent wherein they intend to pool your acreage?
If you don’t lease, and they pool, I understand you could get left out. 100 acres is not all that large so they will very likely need to pool this land with other lands.
Good luck.
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### Author:  [@joe\_marvin\_blair](https://www.mineralrightsforum.com/u/joe_marvin_blair)
#### Post date: [June 30, 2014, 9:39pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/5 "2014-06-30T21:39:22Z")
Jason, I signed a lease on this same Survey back on September 1 of 2013. Terms were similar. Simonds Land Services was the Lessee. I would be interested in who you are dealing with on the lease. Also feel free to ask any questions as I believe that we are advantaged by sharing as much info.
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### Author:  [@Jason\_Grace](https://www.mineralrightsforum.com/u/Jason_Grace)
#### Post date: [August 13, 2014, 5:13pm UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/6 "2014-08-13T17:13:57Z")
Hi Joe, I’m sorry it’s taken me so long to get back with you. Feel free to contact me at [jgrace@titanfactorydirect.com](mailto:jgrace@titanfactorydirect.com)
joe marvin blair said:
Jason I signed a lease on this same Survey back on Sept 1 of 2013. Terms were similar. Simonds Land Services was the Lessee. I would be interested in who you are dealing with on the lease. Also feel free to ask any questions as I believe that we are advantaged by sharing as much info.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 12:33am UTC](https://www.mineralrightsforum.com/t/looking-for-direction/10161/7 "2018-08-15T00:33:35Z")