I have received an offer for seismic exploration in Navarro County Texas. I have 453 gross acres. Some in J.H. Dean survey A231 and some in Edmond Webb survey A839.
They have offered $25 per net mineral acre for a lease option and seismic agreement for 2 years.
They have also offered a paid up oil, gas, and other minerals lease on 453 gross acres if oil,gas, or other substances are produced.
$100 pnma bonus, and 1/5th royalty of production delivered at lessees option to lessor at the wellhead or to lessors credit at the oil purchasers transportation facilities. For a period of 5 years. It includes 1/5th royalty for other gases or minerals. Less a proportionate part of ad valorem taxes, production,severance,or other excise taxes and the costs incurred by lessee in delivering, processing, or otherwise marketing such other substances.
There are several more pages of legal language, some of which are hard to understand. They have not provided me with the number of net mineral acres as of yet.
My questions; is the seismic option fair? Is the paid up mineral lease fair and fair priced? Is the lease “cost/expense” free to me? Do I need to secure an attorney?
I’m sure I will have more questions, but right that is all.
Thank you.
