Recently offered $500 per acre and 3/16th for my interest in 122 acres Harrison County, TX. Very productive gas well on adjacent property. Is this offer on the low side? Suggestions for fair rates would be appreciated. Many thanks, DD
Hi, thanks for the question.
I know of leases on the Texas side in unproven areas going anywhere from $500-800 per acre with as much as 1/5 (20%) royalty.
Do you know if the adjacent well is a Haynesville well?
What survey is your property located? When I looked at Harrison County, from the TRRC web site, it looked like it was lit up like a Christmas Tree with all the gas wells. Many had been shut in or plugged. If you have the Bossier/Haynesville formation in your area, then I would be negotiating much higher terms than what you were offered. It appears those terms you have was the initial offer and it is a very minimum offer. If you have a good producing well adjacent to your property then I would get the production figures and use that for negotiation purposes.
Thank you for your response. My grand father was a Marshall landman for 50 years. He has been gone since the 70’s and unfortunately he taught none of the surviving female heirs much about the oil business. Each time we accept the terms of new division orders, we worry because we don’t know how to ascertain a fair offer. The landman who contacted me mentioned the adjacent gas well.
I do not know the formation the adjacent well and our property sit above. How would I find out? Our property is located in the Samuel Monday Survey A-14. Was also told there is/was an ancient non producing well on our property. Seems the land was lost in time. Thank you, DD
Taylor Dukes said:
Hi, thanks for the question.
I know of leases on the Texas side in unproven areas going anywhere from $500-800 per acre with as much as 1/5 (20%) royalty.
Do you know if the adjacent well is a Haynesville well?
I appreciate your reply. As mentioned in my previous reply: I do not know the formation the adjacent well and our property sit above. How would I find out? Our property is located in the Samuel Monday Survey A-14. Was also told there is/was a non producing well on our property. Seems the land was lost in time. Yes Harrison County has a lot of activity at this time. Suggestions will be appreciated. Thank you, DD
Mike Igau said:
What survey is your property located? When I looked at Harrison County, from the TRRC web site, it looked like it was lit up like a Christmas Tree with all the gas wells. Many had been shut in or plugged. If you have the Bossier/Haynesville formation in your area, then I would be negotiating much higher terms than what you were offered. It appears those terms you have was the initial offer and it is a very minimum offer. If you have a good producing well adjacent to your property then I would get the production figures and use that for negotiation purposes.
I checked the S Monday survey. Penn Virgina Oil Company has been active there. They are targeting the Bossier/Haynesville Shale formation. The drilling permits were about 12 miles south of Marshall. The production rates were less than I would have expected but that can be the completion techniques. I think an Operator like Devon or EOG could do much better. Also I would ask the land agent to identify the Operator. I would not entertain an offer unless it was with a Company that will drill the well. I have been involved in leasing in East Texas also targeting the Bossier/Haynesville Shale and leasing terms have been 25% royalty interest rate more typically in the hot areas. Bonuses are reported in the 2000 bucks plus per acre range. This can vary but I would be inclined to negotiate from these levels. It does not hurt to ask and be firm and patient. I do not have any direct knowledge of bonus and royalty interest rate terms in Harrison County though. D H Y said:
I appreciate your reply. As mentioned in my previous reply:
I do not know the formation the adjacent well and our property sit above. How would I find out? Our property is located in the Samuel Monday Survey A-14. Was also told there is/was a non producing well on our property. Seems the land was lost in time. Yes Harrison County has a lot of activity at this time. Suggestions will be appreciated. Thank you, DD
Mike Igau said:What survey is your property located? When I looked at Harrison County, from the TRRC web site, it looked like it was lit up like a Christmas Tree with all the gas wells. Many had been shut in or plugged. If you have the Bossier/Haynesville formation in your area, then I would be negotiating much higher terms than what you were offered. It appears those terms you have was the initial offer and it is a very minimum offer. If you have a good producing well adjacent to your property then I would get the production figures and use that for negotiation purposes.
Thank you very much. I will ask more questions of the landman and discuss a better offer. A really appreciate your help. Diana
If you have not already done so, you should check out the www.gohaynesvilleshale.com website as there is much information on Harrison County and East Texas in general therein.
I would not accept any royalty under 25% for E.Texas at this point in time.
Which company has contacted you about your minerals?
We recently settled a lease in Shelby County with Devon. They also started at 3/16 royalty and low-ball bonus but we waited things out (almost 10 months) until finally negotiating a mutually acceptable lease.
Is there an update on the price per acre for Harrison County? Im leased and lease is up in 2 weeks, Chesapeake has approcahed me again to release and said drilling is to resume for this area Im in the Shale and a very productive area Harper Survey…
Ladybug said:
Is there an update on the price per acre for Harrison County?
Im leased and lease is up in 2 weeks, Chesapeake has approcahed me again to release
and said drilling is to resume for this area
Im in the Shale and a very productive area Harper Survey..
I have resorted to hiring a landman to answer these questions. I grew tired of being at the mercy of the oil companies and their landmen. It is nice to have a specialist working for me. I would be happy to give you my landman’s information if this would be of help. Diana
D H Y said:
Ladybug said:Is there an update on the price per acre for Harrison County?
Im leased and lease is up in 2 weeks, Chesapeake has approcahed me again to release
and said drilling is to resume for this area
Im in the Shale and a very productive area Harper Survey…
Any updates on lease rates for Harrison County?
Can you share the recent price per acre for lease?
D H Y said:
Ladybug said:Is there an update on the price per acre for Harrison County?
Im leased and lease is up in 2 weeks, Chesapeake has approcahed me again to release
and said drilling is to resume for this area
Im in the Shale and a very productive area Harper Survey..