I received a lease offer for 180 acres of land I own in Trinity County. I was offered 200/acre bonus with a 1/5 royalty for a 3 year lease. Does this seem like a fair deal? I would like to hear from others to get feedback on what offers you have received. Also, does anyone have a recommendation for a good oil and gas lawyer? And did you "shop around" after getting your offer with other operators in the area to see if they might be interested in your property? I'm very new to all this - I really appreciate any feedback!
Coco,
What is the Abstract number or Section and Block numbers of your minerals acreage? The location of your minerals can make a difference in the bonus money and such. Lets check the GIS Map and see if there is any activity in the area of your minerals.
Clint Liles
Hi Clint,
Thanks for your reply. Sorry, I can't find a lot or block number on the deed. But under "property" is says: R2445, A00023 Johnson, John Tract 54. And there's another tract very close by that I can't find the deed for right now because the piles in my office are ridiculous! But the other tract is very close, but not adjacent, more like caddy corner. The two tracts together total 180 and they are approximately equal in size. I hope that's enough information. Thanks!
Coco,
After checking the GIS Map and also checking on approved permits for Trinity County dating back to January 01, 2012 I see where only 7 permits have been approved for oil/gas wells. I could not find any completion reports on any of those wells. Your Abstract # is 23(A-23). Just to the west of your A-23 a well(API 455-30354)(in A-44) was permitted in 1982 but to my knowledge it was never drilled. Also several dry holes have been drilled in the surrounding area in the past years. I don't see any activity or production in the area of your minerals.
Link to drilling permit for well 30354 in A-44:
GIS Map of your Trinity County A-23 and surrounding area:
Clint Liles
Thank you so much. You are very resourceful and so quick to locate information. I really appreciate your help!
Oil & Gas Attorney: Aimee Hess, email:aimeehess@aimeehesspc.com
Trinity County is getting real "hot" in the last year or so. I helped a friend of mine with a sizable lease in April in the northern part of Trinity County in the north eastern-central part of the County. I also helped a family I know with leases in the northwestern part of Trinity County. They got 22.5%, $700 per acre. The lease was a pretty good lease and they could have got a little better if they would have held out a little longer. I know quite a few people in Trinity County and you should be able to get around d$850 or better with a 1/4 royalty. I would suggest the you contact Buddy Cotton who is on the forum. He is a mineral manager for a lot of companies and people. He has a website and you can get copies of his different form to lease, pipelines seismic and more. Most all local county attorneys are not someone to use in these dealings. Buddy Cotton is in the Orange-Beaumont area. He does this for a living. You can't do better for the price. Also don't sign 3 year leases with a 2 year option. EOG is leasing in Trinity along with Apache. Beware of leasing to Sequitor or SEM!
Thank you very much for sharing your experience. I appreciate the advice and will keep it in mind going forward. It’s great to hear from someone in the area who’s been through all this before.
My siblings and I are currently receiving bonus payments for our mineral rights on around 180 acres in either Kingfisher or McClain County at $600 per acre for a 2 year (with option of 3 year) lease.
So $200 per acre seems kind of LOW to me.