Titus County, TX Lease Offer Questions

Hi all,

I just received a lease offer from my inheritance property in the Titus County, Texas area, and have zero experience with negotiating Oil and Gas rights, etc. I have started to read up, mostly articles and links from this great site, so I've gone from completely clueless to somewhat of a clue. Here are some details on the property and lease offer, along with a few of my many questions:

I have a two separate tracts of 16 and 27 acres from the Larkin Weaver Survey (A-595), and Joseph Salmon Survey (A-506) respectively. Apparently, Exxon is preparing to unitize an area in Titus County, which would include both of my tracts. The lease offer states that the combined "decimal interest" would be 0.016, which comes to 0.66 net acres.

In the lease, the bonus is $200 per net mineral acre, which results in a total of $133 in bonus. Does this seem low, typical, high, depends on xyz? Sounds low to me but what do I know...

The royalty would be 3/16 -- interesting that the body of the lease references 1/8 all throughout but in the back of the document, under "Additional Provisions", it basically says wherever this document states 1/8, change to 3/16 - hmmm.

I'd love to get any thoughts or recommendations on the basic info I've stated above, in addition to answers to questions below.

1. What all is negotiable in these types of leases?

2. The "10 common mistakes" advice article on this site states not to "warrant a mineral title". Sure enough, the lease states "Lessor hereby warrants and agrees to defend the title...". Can someone explain in simple terms what it means to warrant a mineral title, and should I just simply push back on this item?

3. The advice article also states to watch for unrestricted use of fresh water, and again the lease states that the lessee shall have free use of water other than Lessor's wells or tanks. Does the reference to wells and tanks mean fresh water is protected?

4. Should I demand two separate leases for my two non-contiguous areas, again following advice in the 10 common mistakes article?

5. Lastly (for now), should I seek an attorney, and if so, should it be from the Titus area? I live in another state.

Thanks in advance for taking the time to read and respond to this long post.


Abstract-506 shows a few producing oil wells, numerous plugged oil wells, 2 cancelled locations and 2 dry holes in the past. In my opinion the Talco area would be a good area to have minerals. A lot of production has been coming from this area for many years. Am including a GIS map of A-506. In my opinion the $200 bonus money is low for the area.

Clint Liles


Abstract -595 has never been drilled from what I see on the GIS map except for a Horizontal well in the NE corner with the lateral extending into A-465. The completion report on this well in my opinion was good for the area. Apparently Exxon liked this well also and want to drill some more in the area. This well is API # 449-30577. This is the Myra Galt Oil Unit # 4 1-H(Horizontal). Good luck with your leases.

Drilling Permit---http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...

Completion Report on the Myra Gault Oil Unit # 4:


GIS map of A-595

Clint Liles


The last production report on Welldatabase for Myra Gault Oil Unit #4 was for Dec 2012 and production for that month was 750 barrels of oil.

Clint Liles

Thanks, Clint. Great info!

So, if you (or any other smart contributor on this site) were to be in my place, what next steps would you take? How do I determine a reasonable bonus value, and is there a clear basis in these data to back me up if (for example) I wanted to push back and change 3/16 royalty to 1/8?


I have submitted a request for a Titus County Texas Oil and Gas Discussion group to be formed on Mineral Rights Forum. Then you can ask your questions to other Titus County mineral/property/royalty owners. If Exxon is offering you 3/16 then I would ask for 1/5(20%). As far as bonus money I can't help you there. They will only offer you a minimum. I noticed where XTO is also exploring in this area and I would contact XTO about a lease also and state that Exxon is offering to lease your minerals.

Completion report on Exxon well: Talco East Unit Well # 1309H -- 2.8 mi SE of Talco in A-373/API # 449-30588


I would consider this a good well for this area.

Clint Liles