Can you tell me what the most recent rate is for mineral rights leasing in Fannin County?
I know it is public record, but the county clerk has been less than helpful, to say the least, and I can’t seem to find the info on their website.
Also, I would like to know what costs, if any, I would incur, as the mineral rights owner, if I were to sign a lease? And should I try to negotiate a better deal than their initial offer?
Offers will vary across the county, so need a Block name or number, Abstract name and number and section. Clerks are not allowed to give out certain information. In Texas, memorandums of leases are often filed which are not helpful at all. The mineral owner is not liable for operating and drilling costs if just a royalty owner. You have to choose to be a working interest owner to participate in the well. Always try to get a better deal. It is very wise to get a good oil and gas attorney to review the draft lease. The draft is in the operator’s favor and not in the mineral owner’s, so needs quite a bit of editing. You would have to pay for that investment in good help.
Thank you for your response.
Do you know if the rate paid for the mineral rights lease is listed in the mineral rights leases that are filed at the county clerk’s office and if so, how would I go about finding that info? Would I have to go in person to the clerk’s office?
Also, I spoke to a friend whose parents leased their mineral rights in Cooke County and at some point they drilled for natural gas. He said they get a check for about $100 a year and it’s not even worth having to file the income tax on it. This has been going on for many, many years. I don’t know the details but it raised the question of how can I protect myself from a situation like this where a company leases the mineral rights and then produces something so small that it doesn’t make it worth it and essentially not being able to re-lease the mineral rights due to their minuscule production? Hope that makes sense.
In Texas, the lease bonus is not publicly disclosed. Lease or memorandum will simply cite $10 and other consideration. The exception is General Land Office leases and other State leases. You can research GLO website for files for state-owned minerals. Any company leasing hopes to drill big producing wells. Even so, if you only own a small net acres, your royalty will be small. And production diminishes over time so royalties will also go down. Finally, your royalties are a function of market price of oil and gas. Your friend’s parents may have received large royalties in early years which have decreased due to lower production and lower gas prices. He will have to wait for new wells and improved prices.