My neighbors and I recently received offers to lease from Walker Land & Minerals, Inc out of LaGrange, TX. We are trying to educate ourselves on how to respond. The offers seem to be fairly generous, but having read quite a lot of comments on the Internet, now I am very concerned about the details! I do not want a drill rig on my land but would obviously like to take advantage of any oil production if that is possible with that caveat.
I have roughly 24 actual acres of land and my neighbor has 57 acres adjacent to me. The offer is $800 per net mineral acre for 3 years plus a 2 year option. (Both of us have 12.5 % mineral ownership), and there is a 1/5th royalty.
My question is how to respond to this offer. To my knowledge there has been no lease offer on these properties for at least 8 years, so I'm curious why the offer is being tendered at this time. Based on what I have seen on the GIS map, there are lots of plugged wells around us and a few active ones, but is there a growing push for more drilling in our area? I have attached a map of my location.
Thanks for any guidance you folks may have!
93-MDSmith_property_on_GIS.jpg (229 KB) 94-MDSmith_property_GIS_location.jpg (230 KB)
