# Surprise Valley Leasing Update - 09/14/2023
**URL:** https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329
**Category:** Leon County, TX
**Created:** [September 14, 2023, 9:04pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329 "2023-09-14T21:04:43Z")
**Posts on this page:** 19
**Page:** 1
### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 14, 2023, 9:04pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/1 "2023-09-14T21:04:43Z")
Surprise Valley has been busy after the Labor Day holiday, recording lease memos that add about 19,000 gross acres to their lease holdings in Leon County, bringing their total Leon/Freestone acreage to about 92,000 acres. Here is a map of the current leasing locations:
Surprise Valley is leasing for Comstock, and these latest filings bring Comstock’s total acreage in Leon, Robertson, and Freestone Counties to about 180,000 acres plus whatever the gross equivalent is of the 60,000 net acres they acquired from Legacy Reserves (It should be more than 250,000 gross acres in total). Here’s a map of the Comstock lease area:
Other entities, such as Aethon, Vanna Production, and Thorp Petroleum, have leased an additional 118,000 gross acres in Freestone, Leon, and Robertson Counties, so total leasing is around 300,000 acres plus the 60,000 net. Here’s a map of the total lease area in Freestone, Leon, and Robertson:
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### Author:  [@benn\_bundy](https://www.mineralrightsforum.com/u/benn_bundy)
#### Post date: [September 15, 2023, 1:46am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/2 "2023-09-15T01:46:28Z")
Thanks Alan. I’ve got a head-scratcher right in the middle of that area. We have minerals in the M C Lee Survey A-500, the Shelley Pate well is on it (about 4,000 feet, drilled 1980), barely producing—they don’t even send checks out, but enough to hold. The operator, BASA, claims to not have the deep rights, so not sure what their play is. I don’t actually know how the old lease document is worded—never seen it. They are not offering to lease the deep rights from us, and nobody else has offered us a lease on anything. BASA land man claims to not know of any leasing in the area. Perhaps they are the ones behind my recent offers to purchase my rights—very aggressive ones. I just want someone to lease the deep rights. Any thoughts?
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 15, 2023, 1:59pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/3 "2023-09-15T13:59:25Z")
The MC Lee Survey is not in the heart of the current leasing area, but Vanna Production has leased an 82-acre tract in it, and both Surprise Valley and Hou-Tex Exploration (known speculator) have leased a 168-acre tract that is in the M C Lee and the R Hunter A-372 Survey.
Your area is quite a distance to the northeast from Comstock’s current drilling activity, so it’s possible that interest in leasing your deep rights may increase as they move to the northeast.
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### Author:  [@benn\_bundy](https://www.mineralrightsforum.com/u/benn_bundy)
#### Post date: [September 15, 2023, 3:52pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/4 "2023-09-15T15:52:49Z")
Thank you Alan. I appreciate that information.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [September 15, 2023, 7:29pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/5 "2023-09-15T19:29:58Z")
You need to review the old lease to determine what depths are held. It should be filed in deed records. Many of the old leases apply to all depths and do not have depth severances. If that is the case, then you cannot lease the deep rights until the lease expires. It is not unusual for the shallow and deep right leasehold rights to be assigned separately. So Basa may hold shallow rights down to a certain depth and another company may hold deeper rights. This can be determined by tracing the assignments from the original lessee forward in the deed records. You should also review the lease to see what production is required to keep the lease from expiring. The problem may be that your royalty decimal is very small, but you could try sending a new division order requiring an annual payment.
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### Author:  [@benn\_bundy](https://www.mineralrightsforum.com/u/benn_bundy)
#### Post date: [September 15, 2023, 9:36pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/6 "2023-09-15T21:36:24Z")
Thank you TenninDaze. That is very helpful.
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [September 16, 2023, 5:21pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/7 "2023-09-16T17:21:28Z")
This is why leases need to have a “minimum royalty clause.” The lease is required to pay X # of dollars per year per net mineral acre. If a company is going to HBP the lease then they are going to have to pay a hefty fee!
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### Author:  [@goose](https://www.mineralrightsforum.com/u/goose)
#### Post date: [September 17, 2023, 12:35am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/8 "2023-09-17T00:35:48Z")
How close is this getting near Edward Davis A-243? I still have not heard any news regarding this area. Very interested to know.
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 17, 2023, 8:55pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/9 "2023-09-17T20:55:20Z")
If you look at the Surprise Valley leasing area map shown earlier in this thread, The Edward Davis Survey A-243 is located just above the “7” icon (indicating Highway 7) between Centerville and Concord. As you can see, it is very close.
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 18, 2023, 3:06pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/10 "2023-09-18T15:06:02Z")
New info: Nickel River Royalties, leasing for Concordia Energy, has leased an 87.5-acre tract and a 93.5-acre tract in the Edward Davis Survey A-243.
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### Author:  [@goose](https://www.mineralrightsforum.com/u/goose)
#### Post date: [September 18, 2023, 3:43pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/11 "2023-09-18T15:43:17Z")
I am aware of who that is. Thank you, Alan.
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 18, 2023, 4:47pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/12 "2023-09-18T16:47:27Z")
What do you know about Nickel River’s leasing program? Since 3/30/2023, they’ve recorded leases covering more than 7,000 acres in Leon County.
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### Author:  [@goose](https://www.mineralrightsforum.com/u/goose)
#### Post date: [September 20, 2023, 2:09am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/13 "2023-09-20T02:09:53Z")
I think the two you mention above are adjacent to me. Nickle River called me several times and even sent me a lease to sign within 24 hours.!!! Other than that I do not know anything.
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### Author:  [@Zaphod](https://www.mineralrightsforum.com/u/Zaphod)
#### Post date: [September 22, 2023, 12:04am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/14 "2023-09-22T00:04:22Z")
Do you happen to have an example of a “minimum royalty” clause for Texas? Thanks in advance.
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [September 23, 2023, 11:34am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/15 "2023-09-23T11:34:39Z")
I would recommend you get a good Texas Oil and Gas Attorney to help you with this. $850/net acre for a 3-year term and 1/4 cost-free royalty. Also a minimum royalty clause of $300/net mineral acre/year minimum. This protects you from being held by production for $10/year.
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [October 1, 2023, 4:18pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/16 "2023-10-01T16:18:04Z")
I Googled Concordia Energy and all it showed was an Electric Provider. Something doesn’t seem right about this to me.
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [October 2, 2023, 1:39am UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/17 "2023-10-02T01:39:33Z")
[https://www.bizapedia.com/tx/concordia-energy-llc.html](https://www.bizapedia.com/tx/concordia-energy-llc.html)
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [October 2, 2023, 1:47pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/18 "2023-10-02T13:47:40Z")
Thank you, I had already seen that and other things. As I’ve stated before, Comstock looks like it is the only company that is capable of drilling the deep horizontal Bossier and Haynesville wells costing $20,000,000. That is actively drilling and leasing in Leon County.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [December 13, 2023, 9:05pm UTC](https://www.mineralrightsforum.com/t/surprise-valley-leasing-update-09-14-2023/72329/19 "2023-12-13T21:05:18Z")
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