My relatives have Section 271 and our attorney told them that Noble was offering $20K nma to Lease. Not to sell.
Brenda, thanks so much for your reply. Three more questions if you don’t mind. Who is your relatives’ attorney, did he/she mention the company(ies) offering the $20K bonuses and how many net mineral acres do your relatives have in 271? My thanks in advance! Kathryn
Attorney Nicholas at GSDM in Austin We have around 6-7 acres in 271 Noble was offering 20K
Is there any drilling activity in Section 265 either in or near Block 13?
What is the going rate per mineral acre for land in this area?
Yes I think that I leased Sec 270 or 271 with a bonus of $12K nma I think Adarondack or Centennial pay me royalties on these monthly.
We finally settled on 10k an acre with Rosetta.
One thing I wondered about is the different levels of strata in the substructure. I assume that a well has to be drilled to fracture the oil bearing substrate for each layer. If this is the case, does the lease cover all layers or should there a caveat in the lease that limits the lessee’s right to develop each layer with the one lease.
Is anyone putting a cap on the length of the lease once production begins? George
George, found your questions and will take a shot since no one responded.
In negotiating a lease provisions can be added limiting the area that can be held by production. You might want to read up on Pugh clauses, both the vertical and horizontal types.
The basic concept is, after the primary term of the lease expires, to force the release of any area not included in the boundaries of a producing unit, or that is a specified depth (for example 100’) below the base of the formation the well is producing from. It’s less common but you could also try to include provisions forcing the release of any area that is some agreed distance above a producing formation.
On your question about putting a cap on the length of a lease once production begins, the only thing I’ve seen added in that regard is wording saying for acreage to be held by production the well has to be producing in paying, or economic quantities, but that can be hard to define.
Check the RRC site of the State of Texas–Railroad Commission. Google RRC GIS or Texas GLO, General Land Office.
The RRC has an interactive map showing the drilling and permit status, although they are some weeks to months behind.
The RRC site also has information about permits applied for, permits granted, well production
Hi new to this group. Just got an offer from Peak Land Services regarding lots 2,3,5&6 of block 8 in section 271 of the Torah Valley Grape and Alfalfa Co subdivision, block13 Reeves county Tx. We own .75 net mineral acre interest. They are offering a one time bonus of 7000 per nma with 25% royalty for all oil and gas produced. It’s a 3 year lease with option to extend for another 3 yrs with same bonus. Is this a fair offer? Obviously I know nothing but I have been doing some reading on the subject. Thank you for your time.
We got 10k pnma in 2018 for section 271. It was a two year lease as well. Up for lease again next year unless Noble energy drills.
Make sure that you are talking about the same Section 271 and Block #, as bonus rates vary by location in Reeves County. I do not like options to extend and certainly not at the same rate.
Do you mean that you own a mineral interest of 3/4ths of an acre of that 20 acres and they are offering you $7000 on that interest? If you are being offered 7000 on 3/4ths of an acre than that is about an offer of 9300 per NMA which then would be within the range of what is offered in the area.
But if it is only 7000.00 per NMA, then that offer is low for that area.
Please understand that I am trying to understand what you are asking, it is not meant as any slight towards you.
20,000 NMA in section 265 - lease with 25% royalty 265 has some permits out. nothing drilled, nothing spudded as yet.
Check RRC GIS site, Reeves County #389 then about ten to twelve miles south of Pecos you will find Section 265, Abstract 321- A321 of Block 13
We got an offer for $10,000 per mineral acre. Is that too low.
Lynn Here’s the background my Grandmother was original owner when she died she left the rights to 3NMA to her 3 daughters. Each daughter received .75 NMA interest. So I was called by a company that represents Centennial Resource Development. So they offered to lease .75 NMA for $7,000 per NMA as a one time bonus and 25% royalty for 3years and to be renew for same. I hope that helps. I have five siblings and each of are interest are 0.15NMA I realize this is not a lot but I want to be sure the offer is in line. Thank you. I am learning a lot on this forum
The only information I can relate pertains to section 365 just west of you. The property my cousins hold has leased for 3000 and then 15,000 a NMA with a 25% royalty. But I am not local and do not know the geology of the area regarding oil potential.
If you did take the 7,000 I would limit the lease to two years with no renewal. I hope others post on this to give you more information and suggestions, The problem with these sections is that they were divided into 5 and 1 acre lots and are difficult to assemble into a block large enough to drill upon, or rather, under. The horizontal fracking wells are getting to be up to two miles in length (maybe more now).
The change in format of this forum has also been a hindrance to many of the old time posters. (this is not to knock the site providers, they were forced out of the old site and the old format was no longer supported so this is what we now have)
Lynn You mentioned $20,000 per mineral acre in Section 265. Do you know when and who is offering this amount. George
Hi ya’ll. Received an offer to purchase from Oxy U.S.A. For lots 5 & 6, Block 6 Section 271 block 13 h&gn rr. Co survey. The offer is for my 3.25 nma and Oxy is offering approximately 84K for all 3.25 nma. Is there any activity in this section/block/lots that I should be aware of? Thanks for any info. The lease expires in 2020.