Hello, I’m new to oil leasing. I keep reading 3 year lease 2 year option. What does “2 year option,” mean? Thank you
2 year option means that they can pay you another bonus (same amount as the original) to extend the lease for two more years. Generally you should not do this as they control the game. History has shown that lease bonuses tend to increase each year. My advice would be to lease for 3 years and say “no” to an option to extend!
Rudy – Stephen is correct. It’s their option, not yours. If rates increase, they will renew at the old lower rate. If rates decrease, they will choose not to execute the option. That also has a cost if, for example, another company is interested in your acreage. The new company’s interest might disappear during the murky time when the possibility that the option might be executed has not yet been resolved. You only have downside, never any upside.
Thanks for that Clint! I have the lat/long for the block centroid and so have located it on Google Maps, but I’m just trying to figure out how to access the plat map for purposes of legal documentation.
We have recently signed a lease in Section 68 Block 4 in the Heard survey. I see they recently got a permit renewed for a well API#389-35550 which is in our pool. The permit shows spud date of 12/30/16. What does this typically mean in terms of actually seeing oil revenues? Is the a sign things are close or is it still something that can be a long ways off?
You can try to negotiate a higher bonus in exchange for the 2-year extension option. Sometimes they will pay more because the lease has more value to them.
Sorry #3843
Steven,
Try calling the County Clerks Office. They may sell plat maps. Some Texas Counties do sell plat maps.
County Clerk Dianne O. Florez
P. O. Box 867
100 E. 4th Street, Room 101
Pecos, Texas 79772
Telephone (432) 445-5467
Fax (432)445-3997
Clint Liles
i attempted do that but they didn’t know which plat map to sell me. What I’m looking for is a way to find the plat number and plat index from the information i have available.
Steven,
Possibly one of the Reeves County Forum members can send you in the right direction. I just pulled up the GIS Map of your A-5072 and there are producing wells on every side of your minerals acreage. Would you like for me to post a GIS(Geographic Information Survey) map of your area?
Clint Liles
FYI, our acres in this pool are located in abstract #3834. I assume if they start getting oil then everyone in the pool will receive revenue regardless of the abstract, is that correct?
I’ve got an abstract number (3895072 and location (NE corner of 320 acres of East half of Section 23, Block C-7, Public School Lands Survey, A-5072, Reeves County) but am looking for a plat map. Does anyone have general advice on how to go from here to there?
M Smith, this well appears to have been permitted as an injection well, as compared to the horizontal wells that are prominent in the area. Also, when an operator drills a well it depends on the acres they dedicate to the well. If you have an undivided interest in the dedicated acreage, and you own as to the depths drilled, I believe you should expect revenue. Who did you sign your oil and gas lease with? You can run a query using the site below and keep an eye on an Operators permit applications and track the activity around your area here. Be sure to select the county, well type and a start & end date in 2017 when using the query tool: http://webapps.rrc.state.tx.us/DP/initializePublicQueryAction.do
We signed a 3 year lease with Colgate Energy for Abstract 3843, Section 68, Block 4. We were told it was part of a 640 acre pool that would have several horizontal wells drills in the near future. So if this well is a vertical well in the pool it may not mean we will see any revenue like a horizontal well would yield? Do they drill these sometimes in prep for horizontal work in the area?
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My sister and I each signed a mineral rights lease with a signing bonus due within 14 days. It was with a landman company with a well known client. It has been over 30+ days and still no bonus check. The landman says the client has yet to send them the money so they can’t send to us. We are getting angry and anxious thinking we should have gone with another client who contacted us. We would be very grateful for any information regarding this situation. Thanks, Lora
Who is the company you are dealing with?
Lora,
Where are your minerals located? If they haven’t lived up to the terms of the agreement, the lease can be voided…although if they do pay eventually…there could be some litigation to settle it.
Minerals are located section 14 block 5 Abstract 5177 reeves co., Texas lora