Just received a call from CGS Operating not yet have responded. I believe they are wanting a lease for minerals. I have some there. Just wondering what the going per acre in that area now. What term would be reasonable for that area also. The area is League 300 SE I believe. Any help would be appreciated.
Search the MRF forum for other threads about leasing in Gaines and Dawson counties like this Gaines County Labor 5&6, League 295, A-815 Mineral Right Lease
Just received an offer for Gaines County for 15 net mineral acres. 500.00 per net three year primary 3 yr to extend with 500.00 net acre with a 20% royalty. Acreage is located Block 9 League 300 Terry School Land. This offer was from CGS operating which I understand is hopeful to flip this at a better price. However best I can see 25% a better rate. And I understand it would lock me in at 6yrs. However I have not had any interest in this for many years wouldn’t it be best to take what they offer and take my chances rather than lose the offer down the line. Any help would be appreciated. Thanks
If you are risk intolerant, could use the $7500 bonus, and don’t mind your minerals being subject to what I am assuming is a highly-favorable-to-the-lessee “producers” type lease, then your outlined plan of action may be a good course to follow. I have twice had a deal evaporate while pressing for better terms–not exactly fun times. Just my two cents.
I just signed a lease in Section C32 (north portion of Gaines county) for $500/acre for 3 years at 25% royalty with Prestige Exploration. I had a board certified oil and gas attorney in Houston (Eric Lindahl with Williams&Lindahl, 713-463-6700) look over the lease for me. He helped me understand the terms - it was highly favorable to the lessee - and proposed changes to make it less favorable - like adding a Pugh clause, but unfortunately it was a take it or leave it deal. At least I know what I signed up for. The area is not as hot as other areas so it seems the bonus payments are more modest.
Thanks noticed not hot area. I guess I will ask any wiggle room for this one. Like a pugh clause. If not will probably give it serious thought.