I have been told royalty interests in Texas generally range around 25 percent and some people even get 30 percent. Is that true? I have minerals in Reeves County, Texas. Does anybody know the going rate for royalty in that area?
not sure of 30% but 25% is happening… you can get as high as 33% which is the highest possible I think… but I have not heard of anything higher than 27%
In my experience, 25% has been the going rate in the shale plays, but many companies are trying to reduce to 22% (in gas only areas). Outside of the shale plays, RI’s tend to be less. The only time I’ve seen RI in excess of 25% has been in some of the 2008 subdivision leasing frenzies in Arlington, TX (Barnett Shale) when gas was selling for over $13.00. Natural gas is now below $4.00 and offers (bonus and RI) are much less. Operators are pretty keen on keeping the 75% intact to fund their investments and operations.
Virginia A. Moore
Law Offices of Virginia A. Moore 6021 Morriss Road, Suite 112 Morriss Road Office Park III Flower Mound, TX 75028-3764 972-355-0800 (Office) 972-355-3900 (FAX) www.vamlawfirm.com
Board Certified Oil, Gas and Mineral Law Peer Review Rating: AV® Member of the College of the State Bar of Texas http://www.avvo.com/attorneys/75028-tx-virginia-moore-190757.html
This answer is intended to be general and informative in nature and does not constitute legal advice.
I am totally new to learning about land, gas, and oil, and mineral rights and I have so many questions. I cannot afford to hire an attorney at this time so this forum I hope will be able to help me out. I just learned that my grandmother, who is 91 and in ill-health will be leaving me mineral rights, however she cannot tell me much more. Where is the starting point to finding out information about mineral rights, where they are located, etc.? Apparently she has mineral rights to land in Moore County Texas and Cleveland County Oklahoma. HELP!