Obviously, it appears when it comes to royalty rates "all things are local." It is hard for the uninitiated & unexperienced to know whether a Land Man's offer is a "low bid" or "market rate."
I have been offered (for 54 acre tract being pooled into 600 acres) $200/ ac bonus & 1/6 Royalty. can't tell is theis is "Good, Bad, & Ugly." I have a friend west of Ft Worth where $1K-$5K/ acre & 20% royalty are common... but htat is obviously another Field.
Anyone have local insight into rates around Smith County or Tyler, Tx?
Roderick,
What area of Smith County are you referring to? The Starville, Sandflat, Hitts Lake and East of Lindale areas seem to be getting fairly active in the last year. Those wells being drilled in those 4 areas are probably exploring for oil. The Chappel Hill area seems to be flat at the present time. I would say the 1/6 royalty on any lease is way too low. I wouldn't lease for any longer period of time than 3 years. Personally I don't think you can go wrong by hiring and O & G attorney(for the uninitiated and unexperienced and for the 'experienced'. Just my opinion. Good luck on your lease.
Clint Liles
Clint, thx for reply & insight. Tract is Noonday/ Flint Border just W of 155.
Plan to have O&G Lawyer approve contract. Do some also get in the negotiation game or is that best done by independent Land Man ?
Roderick,
Noonday, just west of 155 is where I live even though I have a Flint Address.(17247 Clint Drive, Flint Texas). What section, block and abstract # are we talking about? Is this in the Katherine Luscome Field?
Your last question I don't understand.
Clint Liles
We have 100% of the minerals on old family land off State Park Hwy between the Loop and I 20. Is that the Hitts Lake area that you are referring to?
Clint Liles said:
Roderick,
What area of Smith County are you referring to? The Starville, Sandflat, Hitts Lake and East of Lindale areas seem to be getting fairly active in the last year. Those wells being drilled in those 4 areas are probably exploring for oil. The Chappel Hill area seems to be flat at the present time. I would say the 1/6 royalty on any lease is way too low. I wouldn't lease for any longer period of time than 3 years. Personally I don't think you can go wrong by hiring and O & G attorney(for the uninitiated and unexperienced and for the 'experienced'. Just my opinion. Good luck on your lease.
Clint Liles
Clint,
Remarkably, we are close to you... off Big Eddy on 1104 (15963). I do feel this area is attached to Katherine Luscome, but they are interested in oil exploration in the field, as opposed to gas. Since you are local, any recommendations on Oil & Gas Attornies who negotiate Royalties as well as evaluate final lease contract?
Clint Liles said:
Roderick,
Noonday, just west of 155 is where I live even though I have a Flint Address.(17247 Clint Drive, Flint Texas). What section, block and abstract # are we talking about? Is this in the Katherine Luscome Field?
Your last question I don't understand.
Clint Liles
Roderick,
I will send you a PM(personal message).
Clint
My husband said that our mineral interest is close to Hitt's Lake. Do you know which company is leasing in that area?
Clint Liles said:
Roderick,
What area of Smith County are you referring to? The Starville, Sandflat, Hitts Lake and East of Lindale areas seem to be getting fairly active in the last year. Those wells being drilled in those 4 areas are probably exploring for oil. The Chappel Hill area seems to be flat at the present time. I would say the 1/6 royalty on any lease is way too low. I wouldn't lease for any longer period of time than 3 years. Personally I don't think you can go wrong by hiring and O & G attorney(for the uninitiated and unexperienced and for the 'experienced'. Just my opinion. Good luck on your lease.
Clint Liles
Mary Jo,
Since January 2012, Valence Operating Co. have filed and got approval for 3 drilling permits in the Hitts lake Field. API(American Petroleum Industry) permits # 423-32311 #423-32312 #423-32317
Here is a link to the latest well that has been approved for drilling:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=HITTS%2BLAKE%2BUNIT&univDocNo=487209319
Clint Liles
Thanks...close to our property. Maybe someone will come knocking on our door for a lease! :)
Clint Liles said:
Mary Jo,
Since January 2012, Valence Operating Co. have filed and got approval for 3 drilling permits in the Hitts lake Field. API(American Petroleum Industry) permits # 423-32311 #423-32312 #423-32317
Here is a link to the latest well that has been approved for drilling:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...
Clint Liles