Royalties - Mine vs Neighbors

I am in Texas. If I negotiate a royalty percentage higher than my neighbors, will a drilling company avoid my property when forming a pool? Am I better off to accept what my neighbors accepted?


It won't matter what your % is if they drill a well. Once the well comes in, you will get whatever % you signed up for.

Maybe. But, it would have to be significantly higher to matter. But, by and large, decisions are made on a geological basis, rather than a land basis. If the oil is under your property, and you're not just an add-on to get a larger unit, then they will include your acreage.

Who has made this suggestion? If it is the landman, his job is to convince you to accept the lowest bonus and royalty rate possible. If you take a lower royalty rate, then the landman or some other party may be given an override of the difference between a higher royalty rate and the lower rate that you accepted. Companies are drilling all the time with varying royalty rates under the leases.

This was not suggested, it was just something that ran through my mind.

On this topic obenco has a landman trying I guess to pool all of us. Most of my neighbors signed quickly a couple of us wanted to think about this before signing. My question is this if I don't sign and they start pumping then what? I get nothing?? I know for a fact that they just moved in big equipment on my friends land right down the road. He said they are getting ready to drill. Secong part is the same company has a different land man that just bought an easment row from me to put a 12 inch pipeline across my place for the movement of product. 4500 for this, and I accepted, the oil land man is only offering 2800 for a three year lease with an option. Plus 1/6th royalty?? I don't know whether to take it or keep holding out????