I live in the Burton area of Washington County, Texas. We have recieved several letters and phone calls from companies wanting to do a lease and geophysical survey. We only own 19.32 acres, so its not a large amount of land but we sit between several 100+ acres tracts. I want to make the right decision and choose the right company. I know nothing about leases or the oil and gas minerals etc. This is all new to me. I dont want to make the wrong choices as our property is at stake here. Several of the leases we were offered has offered $ 150.00 an acre. My first question is is that a fair price? Several of my neighbors with larger tracts of land are already in a lease but not with the companies that have called me. Should I wait for something better? Also we own 50% of minerals and 100% surface. Not sure how all of this works. Dont even know if an attorney is necessary or not in this case. I would appreciate any advice or resources anyone can give me.
I’d first be inclinded to refrain from the attorney: with what’s on the table now 19.32 acres x 1/2 interest x $150/ac. = $1,449.00 and the attorney would get a portion of that for his consultation. With your smaller tract between the neighboring larger, you’re at a distinct disadvanage: they can “shoot around you” with the seismic instruments and probabaly evaluate your acreage … which would be good if they “come crawling back” to you later, but you run the risk of being “shoot out of the picture” and get nothing. Also, they can lease/permit the other 1/2 mineral owner and enter/shoot your property without you consent or compensation. Don’t look a gift horse in the mouth. Try to get price data from local owners that you trust, then entertain the offer and look closely at the lease form: you want to be assured of adequate bonus, rental(paid-up?), royalty and surface use provisions. I can help, pro bono.
Leslie,
Sending you a personal message with my contact details. We are also in the Burton area with 170+ acres currently unleased. Have been through this whole process recently with other minerals in the Haynesville play in E.Texas. Let’s definately talk and compare info.
David
Leslie,
Have you had any further developments regarding your lease offers for the Burton area in Washington County? We are also in that same area and have a few companies interested in our own minerals/land. Please feel free to be in contact to compare notes/strategy.
Best,
DG