I had never heard of a landman until last week, when we were contacted by one in Texas saying that land owned by my great great grand mother was of interest. So, we own 20 acres in Loving County (Lot number 5 and 26 of Section 65 Block 1). We are being offered $1,500 per net mineral acre plus a 25 % royalty. By looking over this forum, that seems low. What is a fair price and do we need a Texas lawyer to help us navigate, since we are out of state?
Betta,
Section 65, Block 1 is an excellent area, and it looks like Anadarko & SWEPI (Shell) own a number of leases throughout the section. Below is a map showing Section 65. You'll notice the numerous horizontal wells in the surrounding sections. Those are good wells, and with that level of activity $3k/acre and 25% should be obtainable. Whether to hire a lawyer is a personal preference, but any competent mineral manager should be able to assist you as lease negotiations and lease form amendments are relatively straight forward for those familiar with the business. The key is to find someone familiar with the leasing activity in Loving County.
Out of an interest in supporting this forum, my advice would be to reach out to one of the forum sponsors to find out what they're seeing in your area, as well as how much they'd charge to review your lease and/or negotiate on your behalf.
http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Good luck and let us know how it goes!
Betta,
This is an area I've owned in for 30 years. I'll add you as a friend. I would comment more on lease prices but I'm in the middle of negotiation in this area and I don't want to comment publicly what I will tell you privately. Until those are complete.
Bart
Thanks for your reply. I am reaching out to one of the sponsors.
Thanks Bart. I look forward to hearing what you have learned.