I am new to the leasing. Our mineral rights are in Gaines Co, TX consisting of 100 acres and was leased at 150/acre in 2008. Have not heard from the present lease holder regarding the option for renewal at 250/acre for 2 yrs. We have received offer of $500 acre, if our present lease holder does not renew. Should I contact my present lease holder, as the lease will expire in 30 days, or let it go and sign with the present offer for more money. Also, my nephew says he may can get a deal with a oil company to just drill for oil w/o lease agreement. Does that really happen?
thanks
Hi Margi,
I have property in Dawson Co and they are offering 400 an acre, 1/4 royalties for a 3 year lease with a 2 year option. So, I am interested in finding out the going rate in Gaines and Dawson Co too (our property spans across both Gaines and Dawson).
As for the company just drilling without a lease, I would be afraid there would not be anything written to protect the rights of the land owner. Plus, what about the associated out of pocket fees?
Hi, we are in Andrews county and got an offer for $200 and 3/16 royalty. We have not signed yet, so, I am wondering if we should do more research.
Margi,
Take a close look at your lease. You may not have an option to deal with others until the existing lease expires. When the lease does expire, Demand a release in writing then you are free do do as you wish.
I manage quite a few mineral parcels in Gaines County and can tell you that it is going to get more competitive as time goes on so don't take the first deal that comes along. Leases being offered right now are not very good for the landowner. You should protect your mineral rights with a good lease for you and with a good company that actually is producing in Gaines County.