Surprise Valley Resources Lease Offer

Texas Mineral Rights Leon County, TX
1

I recently received an offer from William H. Underwood, CPL on behalf of Surprise Valley Resources for a mineral interest passed down from my father. Years ago, I remember hearing something related to this, but it is long since forgotten and I have NO idea where to begin my investigation regarding this matter. Frankly, the more I research the more complicated all this becomes! I have several pertinent questions, the answers to which, I hope can help me get started.

Question #1:

  1. The lease offer is for

    “102.00 acres of land, more or less, out of the Edward Davis survey, abstract 242, Leon County, Texas County and being more particularly described in that certain deed dated December 23, 1919, from JM Scott and JM Sharp to WR Halsey, ET Holloman, DA Sullivan, LT Gresham, et al, recorded in volume 53, page 56 of the deed records of Leon County, Texas.”

I have tried to locate this property using the Leon County online deed records but have been unable to access it. Should I try calling them or what is my next step in accessing the deed and location?

Question #2:

  1. My sister and I were the heirs of Billy Ford Witherspoon who owned a mineral interest passed down from his parents, Hezekiah and Mary, but my sister is now deceased. Do her rights now pass down to her daughter, who to my knowledge, has not received any correspondence relating to this?

Question #3:

SVR has offered the following: “$500 per net mineral acre, five-year primary term lease, with a two-year option to extend, and 1/5 (20%) royalty.”

I have attempted to compare this with offers on this site in Leon County, but as exact location is unknown, my results are limited. Can anyone with current experience/expertise in mineral rights leasing in Leon County, TX offer any advice?

Thanks in advance for your responses and suggestions.

2

Here is the relevant paragraph from that deed, indicating that the 102 acres is located about 6.5 miles south of Jewett:

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3

Here is a map view of the E Davis A-242 Survey. The 102 acres is located within the boxed area:

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4

Consult an attorney at this point.

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5

Surprise Valley is a leasing agent for Comstock. They have one or more leases already for a 102-acre tract in that survey. It is likely that is the same tract as yours. Do you know the other mineral owners involved in that tract? If you do, you should check with them to see what lease terms they agreed to.

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6

I have access to an O/G industry data service called Enverus. I was able to look up the existing leases for that tract. There are several lessors named Gresham and Streeter. I also saw that several were able to get 25% royalties. Bonus amount of $600 was also shown.

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7

A fellow Leon County mineral rights owner here whom has a lease with Mitsui.

This is a serious matter. 25% royalty is correct. Consulting an attorney is appropriate. You have something of value here.

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8

Alan, I haven’t a clue about other mineral owners in the tract…..I didn’t know there were other owners​:person_shrugging:t3:Clearly I do NOT understand how this all works and need MEGA MORE help than I anticipated. I just don’t know where to begin……

The lease offer is good through February 19 so I’m assuming I need to negotiate the terms. But after reading Mineral Rights 101, Do’s and Don’ts of Leasing, and tons of information provided here, I’m still at the babbling stage and feel completely unprepared to negotiate complexities of a mineral rights lease agreement. What is your best advice for someone in my position?

9

your best advice it to hire an oil and gas attorney

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10

You do not have to hire an oil and gas attorney, simply call one and ask him to look at the proposal. They will give you sound advice. Take it from there. There are reputable attorneys suggested right on this forum. Best wishes!

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11

Ask for an extension of the deadline if you wish and take a hour meeting with an oil and gas attorney, well worth it.

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12

A “deadline” is a JOKE. Surprise Valley should know better that have their landmen try that tactic.

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13

Sounds like I should consult an oil/gas attorney for starters….any recommendations for a reputable one with knowledge of this area? I’ve looked at some listed on the site, but if someone has experience with a specific firm, good or bad, I’m all ears​:double_exclamation_mark:

Thanks again for all your input…..this is becoming quite an adventure, albeit not quite as exciting as one of my favorite series “LANDMAN”:heart_eyes:where’s my script?!?!LOL

Please Keep your comments/suggestions coming. I’ve got a lot to learn!

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14

Try Eric C Camp, I learned of him through this forum. He will take a look at your contract. Be aware in all circumstances that with every contract that you receive there is no guarantee that drilling will occur.

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15

I only have the offer I received in the mail, as outlined in my original post. It is not an actual contract as of yet.

16

Call it what you want, have the attorney look at it.

17

I’m not sure I’m understanding you here. Are you suggesting a professional attorney who knows what they are doing is going to do any meaningful work for free? Granted, a few minutes by phone (to figure out if there is a legitimate need from someone who can pay the bill) is readily available, but anything beyond a ~15 minute exploratory call - well that’s pretty much not in the cards. They’re basically selling their time, like most other professions.

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18

It takes the advice of a professional to know exactly what to do. You have what is seemingly a valuable asset. Our minerals are right down the road from you. We have received a significant amount of money on our lease and lease renewal. We now have a well on our abstract and await the royalty on the yield. Do yourself a favor and spend a few hundred dollars on advice because the return or lack of return could benefit you or cost you a small fortune.