Madison County, TX Oil & Gas Permits

Looking for info on current leasing of mineral rights in Madison County, Texas. Is there any recent activity? We just received a lowball offer instead of a pick up of a 2 year option that was due. We have several other properties in Madison and Leon County that are currently out of lease. Any info would be appreciated.

wcm · July 27, 2017, 3:22am

Do you know any of the neighbors? If not you might find them in the Madison County Appraisal District maps if your area.

What part of the County?

How many acres?

WCM

Clint_Liles · July 27, 2017, 12:44pm

Valerie,

This link is to the latest leasing information from Lease Alert about Leon County.

https://www.courthousedirect.com/LeaseAlert/Home/GetBatch/?id=sijsByH/4elDtAXbQMnUdCFizSO2eVjvSy6T1Agp+SagwQWnxBFOjFeFTM1IDz7Lvw3vRMxCF7DLIdJwR0PlxU+dbSAsRdip9OyeAWhMRf8wn4D6hYubbqfvLCqDCBDa

The area that Decker Energy seems interested in leasing at this time is East and South of Leona.

Valerie_Russell · July 27, 2017, 1:44pm

Clint,

We have a $500 per acre lease that has a 2 year option expiring this month. Presco Inc is trying to renew it for $300 for 3 years with another 2 year option. It is in the Daniel Parker survey (86 acres).

The other minerals that are out of lease are in the Gray B King survey (144 acres).

Also have approximately 62 acres in the JM Viesca survey in Leon County.

This lease offer is the lowest per acre offer we have received in 20 years. Is this to be expected in the current leasing environment? Or should we try negotiating?

Thanks for any advice.

Clint_Liles · July 27, 2017, 2:02pm

Good morning Valerie. Can you supply the exact legal description of your minerals in Leon and Madison Counties (Abstract #, Section#).

Valerie_Russell · July 27, 2017, 2:29pm

I will get my paperwork out and get that to you later today. Thanks

Clint_Liles · July 27, 2017, 2:47pm

http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab=init&viewType=prodAndTotalDisp&methodToCall=fromGisViewer&pdqSearchArgs.paramValue=

Valerie,

Through a visual search of the GIS map of Madison County I found the Daniel Parker Survey/Abstract 24.

There are producing vertical and horizontal oil wells and oil/gas wells in the area of A-24. Production is coming from Eagle Ford, Sub-Clarksville and Woodbine formations. Some of the producers in the area are EOG, Texas Presco, and Samson Lone Star (not sure if Samson is still in business). Some of these are very good wells. I agree with wcm and try to find out what your neighbors are being offered. One of the main things in a lease is to have a clause included where you will not be paying any of the Post Production Costs. No use giving the producer back some of the royalty monies that you are entitled to.

GIS Map of Madison County/A-24/Daniel Parker Survey:

CLICK ON MAP TO ENLARGE

wcm · July 27, 2017, 8:49pm

Hello,

Our mineral acres are in the A Boatwright and Z Robinson. The leases in our area are 500 - 650 per acre. A 22% royalty interest for 3 years. Avoid the additional 2 years. No need to pay part of the processing fees. Also be sure they agree to use 100% of the acres in the same unit. Limit the size of the unit to 650 - 700 acres. You do not want to be 10 acres in an 800 acre pool.

If the total production would net you a check of less than 500.00 for a particular month, they pay you 500 dollars for that month. It cuts down on checks for 49.99.

Be careful of the “price per ft” clauses on horizontal wells.

Be careful of small companies that lease and then sell you. Look at the Texas RRC page, and see if the company you are talking to has drilled any wells. And where they were and how good they were.

You can limit them to specific zones, by leasing everything from a certain depth and above.

Ask questions now, your relatives for many generations will be glad you did.

WCM wcm58@yahoo.com