Partial Mineral Interest owner questions

I own 100% of the surface and 1/8 of the minerals of my land in Karnes County, TX and our area is very active with oil & gas. At present the 7/8 minerals owner has secured a lease for their 7/8 of the minerals, however the company that leased their 7/8 has not contacted me to lease my 1/8th - should I contact that company or another company about my 1/8th or do I wait for someone to contact me?

Deb,

The answer is "Yes", go seek them out. However do a little homework first.

If you know who holds the 7/8th mineral interest I would contact them to ask 1. Who did you lease to. 2. Ask if they'll share what terms they received on their lease (bonus, royalty rate, and length of lease). Then with this info in hand, contact the company who leased the other party.

Yet I would also find out what other companies are active in the area and contact them to seek competing offers. If the area is attractive many folks might want your 1/8th interest lease in order to participate as a minority owner.

Pigs get fat, hogs get slaughtered: the 7/8 lessee may not welcome a 1/8 bastard lessee, could take your tract out of drilling/unit altogether of if 7/8 lessee has adjoining acreage they could pool their 7/8 interest without regard to the 1/8 provided the well is 467’ from lease/boundary line of your tract … be carefull!

Eastern MT said:

Deb,

The answer is "Yes", go seek them out. However do a little homework first.

If you know who holds the 7/8th mineral interest I would contact them to ask 1. Who did you lease to. 2. Ask if they'll share what terms they received on their lease (bonus, royalty rate, and length of lease). Then with this info in hand, contact the company who leased the other party.

Yet I would also find out what other companies are active in the area and contact them to seek competing offers. If the area is attractive many folks might want your 1/8th interest lease in order to participate as a minority owner.

How would that work with what is apparently an undivided interest ? Do you have an undivided interest DebS ?

Rocky Arrell said:

Pigs get fat, hogs get slaughtered: the 7/8 lessee may not welcome a 1/8 bastard lessee, could take your tract out of drilling/unit altogether of if 7/8 lessee has adjoining acreage they could pool their 7/8 interest without regard to the 1/8 provided the well is 467' from lease/boundary line of your tract ... be carefull!

Eastern MT said:

Deb,

The answer is "Yes", go seek them out. However do a little homework first.

If you know who holds the 7/8th mineral interest I would contact them to ask 1. Who did you lease to. 2. Ask if they'll share what terms they received on their lease (bonus, royalty rate, and length of lease). Then with this info in hand, contact the company who leased the other party.

Yet I would also find out what other companies are active in the area and contact them to seek competing offers. If the area is attractive many folks might want your 1/8th interest lease in order to participate as a minority owner.