So 2015 inherited oil, gas, mineral rights from my dads family land. Didn't even know about it until they wanted lease. Was really invested into the whole thing signed as well as my two siblings. 500 per net 20% royalty 3 year 2 year option/500 per net. So two questions was that a good deal? Second I really just remembered about it two years later can I sell my lease? I'm sorry I don't know anything about this stuff.
No
Well that was so very helpful, unclear and kind of rude.
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No, the bonus was too low and the royalty should have been 25%. It is likely that the group who leased flipped your lease at $1000-$1500 and at a 25% royalty. The group that leased the property or individual that leased the propert most likely flipped the lease to another company for a 5% overriding royalty interest and then got to keep the difference between the $500 bonus and the amount they negotiated with the company they assigned the lease to multiplied by the total number of Net mineral acres you and your brothers owned. Hypothetically speaking if you all owned 100 net mineral acres then multiply that by say $1500 then they made $100K. 2015
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First, has a we’ll been drilled and prducing? If you not then it would be held by production and you would be receiving royalty checks. If not then you can wait and maybe the term has expired. However, I’d tend to believe your lease had a term for 3 years.
Yes, you can sell your leased minerals. However, the lease language and terms negotiated would be important to look at. The activity around the area is important to know. If there’s several horizontal permits that have been filed or perhaps some DUCs on the land then I wouldn’t sell. However the language of your lease is important. If there’s a continuous development and there is not vertical Pugh or Horizontal Pugh releasing depths then maybe you should consider. Essentially with the former clause and without the latter Pugh clauses, they could commence operations by drilling a shallow vertical well that would which would hold the lease in effect and acreage at all depths and acreage.
If you’d like, friend me and I’ll help you out. I’m familiar with the area.
Apologies, I sent the reply by accident. Sorry about that, I hope my full explanation helped. I was typing from my iPhone. Hope I was of some help.
I have been contacted by WHE AcqCo LLC about leasing my Mineral rights in Burleson county Texas and need to know what the going Lease rates in the area. They offered 300 per net for 3 years additional 2 years Royalty of 1/5 bonus of 1,362.00 I only have 9 acres. I also own the water rights.
The company would be very happy for your to sign for that price. You should be able to get a higher bonus, a higher royalty, and probably better lease terms.
Adele
The price for your minerals depends on the location of your acreage. Assuming you draw a line between Giddings and Caldwell, south / SE of the line merits much higher numbers than what you have been offered.
North the this line has much less value and the offer is pretty close to the best that you can get
Just my opinion on this