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.
Rick I know of a $10,000/ac offer
We finally settled on 10k an acre with Rosetta.
Yes as did some others, then got 15K offer. Bird in the hand I guess
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