Nancy Posey Survey Minerals

Texas Mineral Rights Cherokee County, TX
1

My brother and I inherited 80 acres surface and mineral on the Neches (known as Rocky Point) Nancy Posey Survey A-703. We also own 20 acres of mineral rights on property adjoining.

We had already decided to sell the surface rights to F&WS for the Neches Wildlife Refuge, but that won't happen until later this year.

The landman with NETX Acquisitions who contacted us is all rush-rush, offering $150 bonus, 3-yr with 2 extension, royalty is 1/6.

We will also be contacting F&WS to see if they have an O&G lawyer they work with. I am doing extensive research online and know better than to sign what they sent.

Further steps, advice, opinions on the price?

Thanks much,

Emily DG

2

As a general rule, take no less than 1/5th-- and try to do a straight 3 year lease and lose the 2 year kicker. Ask him who he's leasing for and do they intend to drill. Remind him that EOG has taken no less than 40,000 acres in the area (with better terms than he is offering) and that you may be reaching out to them to see if they want to take your lease. Take your time and let him know you're exploring a number of options. He'll sweeten the deal after that...

3

Thanks very much, Mr Bollinger! we'll follow up on that.