Scurry county leasing

I have received an offer for leasing rights in scurry county. I hired a lawyer and spent money and am still unsure that their offer is fair. I don’t know what would be a reasonable figure per acre. The lawyer didn’t help except get me a second offer and cost money. I know that area is very active right now. If I am correct this area is part of the permian basin. Also, curious as to the enviromental impact on the area regarding water and the town of Balmorhea. I was raised in west Texas area and somewhat emotional to some of the changes. I don’t have a very large amount of the section that they are wanting to lease either. Nobody has shown any interest for 40 years until now. Someone please help

Please tell us your section and block. It would also be beneficial to tell the offer.

it would be Block 3 Section 154 Scurry County 350.00 acre with 3/16 royalty 400.00 acre with 1/6 royalty each 3yr with 2yhr option


200.00 acre with 5 yr

Your acreage is a long way away from Balmorhea and will not impact the water in the area. There are two formations that seem to be hit or miss in the near vicinity. My guess is they are targeting the Wolfcamp. I think that $400/acre is fair and would try for 1/5 royalty with 3yr lease 2yr option. Don’t do the 5yr lease. The fact they offered it to you makes me think they are trying to hold the acreage and flip it if some of the permitted Wolfcamp wells nearby turnout.

when you say flip acreage? I am new to this and don’t quite understand. Best I can determine I need to lease I don’t want to be un leased as I would have less chance of receiving any royalty payments and if I should it would be 11-12 years seeing any royalties if un leased well on that block. And only on that certain well or block. They are pushing for answer should I give them an answer soon? If I don’t do I risk losing out all together?

By flipping people mean there are companies that have inside knowledge who will try to get minerals to accept a low offer - which the first offer usually is - and then sell that lease for a profit. It’s hard to wait the first few times as many will attest. But if u wait, u get more money. And have time to research what others are being offered, what are good terms like not warranting the deed, how to word a no deductions clause so you don’t lose 25% of ur royalties, Pugh clause and more. If u have a friendly lawyer who is familiar w oil and gas you might want to pay their services to learn what can be done. If ur area is going to get drilled you will get better offers if you hold out. It’s a lot to learn - just takes time. Good luck to you and keep reading this site. It’s the best in my experience.

Debby, Chris13 and Rick_Tatum have both given you good advice. I would like to stress that, yes, it is possible for a leasing opportunity to be withdrawn. I have had this happen and it was not a good experience. And sometimes a company will change priorities and simply abandon a prospect. I have sent you a personal message with a link to what I believe is an informative audio interview on the subject of leasing minerals. Look at the top right hand side of your Mineral Rights Forum page for a solid gray circle. Mine has a white “A” in it, so I am assuming yours will have a white “D”. There should be a smaller colored circle at the top left or right side of the larger circle alerting you that you have a message. Click on it if you are interested in hearing the interview.


Unless you need the money soon, I suggest you ask for 25% royalties and $400 per acre signing bonus for 3 yrs, with option for company to lease 2 more years. Otherwise someone will lease from you at lower rates just so they can sell your minerals at higher rates and run with the profits. Having an experienced oil lawyer to draw up the contract instead of permitting the lessee to draw it up can make all the difference in the world.

Debby, My 2 cents worth…we hire a landman (lady actually) to negotiate our leases and add our addendum to any current lease for us. If interested pm me and I’ll give you her name and contact number. She’s very reasonable.

I agree with a lot of what John says…always ask ¼ royalty three years, although we never add two year extensions to our leases.

Thank you and I would love the number but, dont think I could afford her the lawyer I hired charged me much more than I expected to do nothing like he said he could I have a very measly amont of mineral acres and the bonus check might just ber enough to pay him. They said they could go ahead without h me if I didn’t sign, And since 1/2 belongs to my brother in law now I know he is ready to sign and I don’t want to screw him out of the opportunity he waiting on me to decide

I really don’t care for the strong arm ts but I guess in this business it happens. For what I have learned I don/t want to be a unsigned lease holder though.

thanks for all the info and don’t mean to offend anyone but, I just don’t like feeling pressured I know that everyone in it to make money but, I just know my grandfather was a smart man and keep these in the family for a reason. This is not anyone around here I have found that know much about the oil or gas industry. I know my bonus I do get will probably will just barely cover the lawyer that said he could but didn’t. And I don’t have but 10 acres in the scheme of things.

I have an offer now for 20% and $400.00 acre only at 5 years with no option to extend but they would give a free royalty clause in addition to a pugh clause added to the lease. They seem quite stubborn about it on that end. Can someone tell if that would be acceptable? I thought if the well did produce the could extend without my approval anyway. I just would like to get this done before they change their minds and I dont have the capability to hire anyone at this point now. I have paid someone to do nothing already. Any help would be greatly appreciated I really don’t want to lose out altogether.

If they’re offering a Pugh clause, definitely take advantage of it. No need to lease all your subsurface rights, if not necessary. There are reasons for including a 5-year term other than a company simpling flipping the OGL, primarily all of which are economically driven. When you say they can extend without approval, you’re really talking about the Habendum clause in the OGL that allows the lease to perpetuate as long as production in paying quantities is occurring, and rightfully so. If the well is producing and paying, you want the lease to perpetuate. No harm here; pretty standard fare and it also protects the investment made and risk assumed by the operator. Unless you have a large acreage position and/or lands considered as a future drill site location, rarely do you need to hire an attorney, and maybe not even then. IMO, you’re much better off hiring a highly qualified landman who knows the area to help represent you, in most cases anyway.

That is the best offer I have heard so far in this process. I could email you a copy of the original lease offer and the email from yesterday regarding our conversation of the 20%. and the additions. If you could send me your email address and I will forward it to you. This is best thing I have heard in the last two weeks I have been so stressed about and had to learn things very fast and still have so much to learn yet. I would appreciate you help immensely.

Can you make this audio recording available to us on the mineral forum too?

Debby, I’ve been paddling the same boat for the past month too. Only I have a mineral rights flipper dogging me to sell for half of my land’s mineral/oil value. I do, however know they are lowballers. Acting in haste makes waste-unless you have an ER. MY land is in Block 36 Martin Co and it hovers over the Sprayberry/Wolfe patch. My family sold their acreage of the section to the flipper; but they were pushing, threatening and insulting me so I held out. I have til 5pm 5/31 to accept or decline. This is not the only offer just the only one dogged to get the minerals. I have 2 capable landmen helping me.

I do not know if it violates forum rules to publish a link to an interview of a non-advertiser. I will send it to you in a private message. I have no financial interest in the company and I have not used its services. Thanks.

I left message on your phone#. The lease they sent me was a standard lease looked like the one I signed many years ago. Didn’t see anything different about it. Must be way set up on the forum I can’t either send email address maybe through your facebook account if we can’t manage to touch base via phone. I can look you up through there if you have an account.

He said I should cross out whatever I didn’t like. All I know I would like to actually make maybe just a little money. I know the 20% a 2.75% severance will apply. I just want to protect my little bitty spot. I know that I will never be willing to sell. I think oil companies could have the burden of all the expenses of production they make much more money than I.