Weld County, Colorado - Oil & Gas Lease Offers

General Mineral Rights Discussion
21

Sherry, may I inquire as to your range and township?

Sherry Bynum said:

I just signed a 1 year lease on my land in Weld County at 18.75%, $150 per acre. Not only is it location, location, location but it is also negotiate, negotiate, negotiate.

Lori Underwood said:
Thanks Carolyn…you are helping me sort this all out!

Carolyn Mills said:
1/6th is 16.6667, which is what my second offer came in at (up from 15%). First offer was $100/mineral acre, raised to $150/acre on second offer. Just balk and say people keep telling you you should get 17.5%, and that you heard the going rate around there was at least $150 an acre. They may say that’s the best they can do. Say, “well, send a lease to me and I’ll have my attorney look it over.” The lease may come with what you asked for, or at least more than their first offer. Good luck!

Lori Underwood said:
Just offered $3,400 signing bonus for 5 year lease of our 1/4 mineral/oil interest in an area not to far from Jake#2/Weld County. Also, 1/6th interest of any barrels produced and a lease of $85 acre…how much room for negotiating might I have before meeting with the oil company?

22

Ok - I am learning alot from you all! So my contact at the oil company is out of the office today, maybe I can get an answer here? The initial phone call caught me so off guard! I understand the bonus money and the royalty per barrel if the land produces oil. What I am confused on is the lease…I own the mineral/oil/gas rights, but I am not the actual landowner. So am I confused about the third aspect? Should I expect to receive a set monthly lease payment on top of any potential royalties, or would that just be for the landowner?

Thanks for ANY help! Lori

Mike said:

Sherry, may I inquire as to your range and township?

Sherry Bynum said:
I just signed a 1 year lease on my land in Weld County at 18.75%, $150 per acre. Not only is it location, location, location but it is also negotiate, negotiate, negotiate.

Lori Underwood said:
Thanks Carolyn…you are helping me sort this all out!

Carolyn Mills said:
1/6th is 16.6667, which is what my second offer came in at (up from 15%). First offer was $100/mineral acre, raised to $150/acre on second offer. Just balk and say people keep telling you you should get 17.5%, and that you heard the going rate around there was at least $150 an acre. They may say that’s the best they can do. Say, “well, send a lease to me and I’ll have my attorney look it over.” The lease may come with what you asked for, or at least more than their first offer. Good luck!

Lori Underwood said:
Just offered $3,400 signing bonus for 5 year lease of our 1/4 mineral/oil interest in an area not to far from Jake#2/Weld County. Also, 1/6th interest of any barrels produced and a lease of $85 acre…how much room for negotiating might I have before meeting with the oil company?

23

My family owns the mineral rights on 480 acres, T60W, 7N in Weld County. We have been contacted by a few different companies. What kinds of offers have other people been getting in that area? We realize it is a ways away from jake.

24

Our family owns 240 acres of mineral rights in 11N, 63W, Section 34. We leased the rights a couple of years ago before all the interest in the area for 5 years/$5 per year/12.5% royalty. Looks like we left a lot of money on the table.

Questions:

  1. How close is our land to Jake?
  2. We are dividing up 40 unleased acres among 8 of us (5 each) that belonged to our aunt. What should we do with the 40 acres? If we don’t lease them do we forfeit any potential royalties?
25

Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

  1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

  2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

  3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are becoming valuable.

as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. we also but minerals in weld county? prices right now are ranging from 300 to 1000 pan depending on the location of your property and the lease terms. if you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. however, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. if you want to hire someone to negotiate your lease- you may want to contact me. we are building what is called a landowners coalition. contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

26

Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

  1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

  2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

  3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are becoming valuable.

as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

27

Just FYI I think that Contex is working for a company that I will not name- but I do know that they make a lot of money by flipping their acreage to other exploration companies. Just hold tight for a few weeks and see what happens. if you have any interest in joining a land owner coalition in weld county let me know.

Austin

Austin@buffaloroyalties.com

28

I am new to the forum - I would like to converse with someone that has mineral rights around Weld County Colorado T9-R64-S32. This is such a great forum! So much information to take in :slight_smile:

29

What is the mission of the Land Owner Coalition? Just curious.

Austin said:

Just FYI I think that Contex is working for a company that I will not name- but I do know that they make a lot of money by flipping their acreage to other exploration companies. Just hold tight for a few weeks and see what happens. if you have any interest in joining a land owner coalition in weld county let me know.

Austin

Austin@buffaloroyalties.com

30

Mike Can you tell me the particulars on the March 31, 2010 lease you referenced? Can you provide a link to the lease? Thanks!

Mike said:

Carolyn,
We are helping out-of-state relatives who have a mineral rights on T10N, R57W. Contex has also contacted our family. Their representative says he is not a lease hound but is an agent for a drilling company that does not want to be identified. We have been offered the same 5 year, 16 2/3% royalty & $150 per mineral acre lease.

Be aware that Weld County has posted a lease dated March 31, 2010 on the web in which they receive 20% royalty. The land is located about 19 miles due west of the above tract and about 8-9 miles SE of the Jake well.

Our concern is that as minority mineral rights holders we be protected by uniting with other minority holders to obtaining an “entirety clause” thus sharing our percentage with the entire tract covered by the lease.

Do you have an oil & gas attorney with no conflicts of interest?

Your thoughts?

Thanks.

Mike

Carolyn Mills said:
Contex Energy sent an offer of $100/mineral acre, five year paid up and 15%. Even followed up with a phone call. After said phone call, in which I invited the land agent to send a lease for me to look over after he said “we’re too far apart”, the lease arrived with a sweeter deal: $150/acre and 16.666667% (1/6). Didn’t budge on the five years, though. Agreed with no trouble to striking the warranty of title. We’re in Township 11 North, Range 57 West, 6th P.M., Section 6.

I really hope it is safe to discuss all this on this forum, but I sure haven’t found any others with comments or otherwise about Weld County.

You mentioned “offers” (plural). More than one company? Any drillers oil companies themselves? Contex apparently is a legit representative for various oil companies.

Thanks for responding! This is shaping up to be quite an adventure… I hope a prosperous one for all of us!

Carolyn

Pat said:
We’re weld county mineral owners getting offers too. Let’s talk.

31

The mission of a land coalition is to bring together many mineral owners and create a large package of mineral interests that can fetch a better price and terms from oil and gas companies. Professionals negotiate on behalf of everyone in the coalition so that way people not used to mineral leasing don’t get taken advantage of.

KRE8R said:

What is the mission of the Land Owner Coalition? Just curious.

Austin said:
Just FYI I think that Contex is working for a company that I will not name- but I do know that they make a lot of money by flipping their acreage to other exploration companies. Just hold tight for a few weeks and see what happens. if you have any interest in joining a land owner coalition in weld county let me know.

Austin

Austin@buffaloroyalties.com

32

Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:

Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

  1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

  2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

  3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
    becoming valuable.


    as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

    if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

    good luck to everyone!

    Austin
    Austin@buffaloroyalties.com

    p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.
33

There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:

Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

34

Austin is trying to scam you all into selling your minerals, be careful!

Austin said:

There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

35

yes, scam you all

John Burman said:

Austin is trying to scam you all into selling your minerals, be careful!

Austin said:
There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

36

Just to make it clear, you have never spoken to me nor do you have any idea how I do business. go ahead and see if you can find anyone who feels like they have been scammed. Not to mention that a land owner coalition is purely for the benefit of mineral owners. Austin said:

yes, scam you all

John Burman said:
Austin is trying to scam you all into selling your minerals, be careful!

Austin said:
There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

37

Do not sell your minerals to buffalo royalties!

Austin said:

Just to make it clear, you have never spoken to me nor do you have any idea how I do business. go ahead and see if you can find anyone who feels like they have been scammed. Not to mention that a land owner coalition is purely for the benefit of mineral owners.
Austin said:
yes, scam you all

John Burman said:
Austin is trying to scam you all into selling your minerals, be careful!

Austin said:
There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

38

Some of the advice that “Austin” gives seems to be correct. It is never a bad idea to wait on signing leases(keep in mind though waiting too long may end up hurting you), or to take the time and research other leases that have been taken in your area to get a rough idea on the terms of which you may be leasing (Call neighbors). However do not sell your rights. Austin asks you to sell to his company, this is a bad idea. If you happen to call Austin ask his age. Think its 26 so his decade of exp. started when he was 16??? Also his record in the land business has been tarnished from backdoor deals, i.e. working/researching records for companies then, as he is doing here, buying the unleased mineral rights from mineral owners and leasing this interest back to his company or other companies at higher rates.

I do not say this to be disrespectful but in a business that has had its reputation taken down so far by shady deals and “landmen” not big oil trying to sweeten their pot and increase their revenues while giving you a return of what 700- 1000 dollars an acre is not acceptable. This is my business and would like all parties involved to have a fair deal. So in short retain your rights, if you want to see, as any landman that has worked Weld County will tell you, the county is doing its best to ensure severed mineral rights are conveyed back into to property/surface owner. Weld is trying to clean up its records not sell them off to individuals who propose offers on an online forum.

*It is never a good idea to sell you mineral rights unless you must, DO NOT TRUST THIS LANDMAN, you need not take my advise just ask Austin for references in his “decade” of experience. I think he’ll come up a little short with names prior to 2009.

Mr. Austin on a professional note, SPELL CHECK and call individuals, don’t propose offers on nonpersonal online sites.

Austin said:

There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

39

16 years old is correct. I started learning chain title in Washington County, CO. I will no longer add to the forum. To conclude:

  1. Never lease for the terms originally provided to you. Take your time and try to negotiate higher royalties, and if you can a shorter term. They will usually meet you in the middle (there are a few exceptions to this but they are very few indeed)

  2. Always include a pugh clause if you have a property that will include multiple drilling units (usually 160 acres these days in Weld, but horizontals are a 640 acre units right now)

  3. Always strike the Bona fide offer clause

  4. Always strike the warranty clause

  5. If you’re a surface owner be sure that the surface protections in the lease are adequate.

  6. Finally, only sell your mineral rights if you have fully researched the alternatives and are comfortable that an alternative investment will be beneficial for your situation. And please don’t think you should sell them to me- look for all other potential buyers.

I am not here to scam anyone and I can provide numerous references from mineral owners, landmen, attorneys, and business associates.I welcome anyone’s questions

john smith said:

Some of the advice that “Austin” gives seems to be correct. It is never a bad idea to wait on signing leases(keep in mind though waiting too long may end up hurting you), or to take the time and research other leases that have been taken in your area to get a rough idea on the terms of which you may be leasing (Call neighbors). However do not sell your rights. Austin asks you to sell to his company, this is a bad idea. If you happen to call Austin ask his age. Think its 26 so his decade of exp. started when he was 16??? Also his record in the land business has been tarnished from backdoor deals, i.e. working/researching records for companies then, as he is doing here, buying the unleased mineral rights from mineral owners and leasing this interest back to his company or other companies at higher rates.
I do not say this to be disrespectful but in a business that has had its reputation taken down so far by shady deals and “landmen” not big oil trying to sweeten their pot and increase their revenues while giving you a return of what 700- 1000 dollars an acre is not acceptable. This is my business and would like all parties involved to have a fair deal. So in short retain your rights, if you want to see, as any landman that has worked Weld County will tell you, the county is doing its best to ensure severed mineral rights are conveyed back into to property/surface owner. Weld is trying to clean up its records not sell them off to individuals who propose offers on an online forum. *It is never a good idea to sell you mineral rights unless you must, DO NOT TRUST THIS LANDMAN, you need not take my advise just ask Austin for references in his “decade” of experience. I think he’ll come up a little short with names prior to 2009.

Mr. Austin on a professional note, SPELL CHECK and call individuals, don’t propose offers on nonpersonal online sites.

Austin said:

There are many issues to consider when leasing. One thing I can tell you without reservation is that you should demand that they strike the bona fide offer clause and the warranty clause in the lease. If it is a big property you should also demand a Pugh clause. Also! only give them a 60 day drilling clause rather than a 120 which is what most of the leases up there are costing. if you have more questions let me know.

Austin

Austin@buffaloroyalties.com

Carolyn Buckingham said:
Are there any particular clauses that should or shouldn’t be included? Thanks!

Austin said:
Hello all. My company has leased 40000 acres in Wyoming and we are the owners of roughly 5000 net mineral acres in Wels county (mostly in 11-61). I can tell you a few things.

1. Jake has been shut in for a few months now so there is no way to determine any decline curve or estimated reserves as of yet.

2. EOG has drilled three more wells and all produced at initial rates of 700-1100 bps for the first 5 days of production likely leveling off to about 3-500 Bpd average in the first 100 days.

3. lease prices in the immediate vicinity of jake are very high- less so as you move east and north of there. Weld minerals are
becoming valuable.


as some have said on his forum, larger parcels can have more bargaining power and therefore may command a better lease price. my company has recently leased all of our acreage in the area for an average price of 175 and a 17 percent royalty.

if any of you would like to get some advice on leasing feel free to contact me at Austin@buffaloroyalties.com. We also buy minerals in weld county. prices right now are ranging from 300 to 1000 per net acre depending on the location of your property and the lease terms. If you own a very small interest you might consider selling just to avoid the hassle and let someone with a lot of acreage do the bargaining. However, no one really knows how hot this play might get, or if it will be a bust in some areas.

good luck to everyone!

Austin
Austin@buffaloroyalties.com

p.s. I have worked land in weld county for a nearly a decade and I know he ropes up there. If you want to hire someone to negotiate your lease- you may want to contact me. We are building what is called a landowners coalition. Please contact me with any interest in joining for free- To put it simply, its a union of mineral owners negotiated for by professionals with lots of leverage because of the large number of owners involved.

40

We leased about 400 acres in 9N64W a few weeks ago. From recent Weld County minutes it appears we settled about 20% too low. Our water agent had suggested $200/acre and 20% and he was right on target. We went with a local owner/landman/nieghbor because of his long local history of surface protection.

Weld County OIL & GAS LEASE BID TABULATIONS - May 03, 2010

Royalty was 20%.

http://www.co.weld.co.us/departments/Purchasing/CurrentRequests/Oil…

#1 SE¼ Section 8, Township 8N, and Range 64W containing 160.00 acres $600/acre by Hoover and Stacy

#2 SE¼ Section 24, Township 8N, and Range 64W containing 160.00 acres $600/acre by Hoover and Stacy

#3 SE¼ SE¼ Section 25, Township 9N, and Range 64W containing 40.00 $75.00/acre by Bold Resources

#4 S½ NE¼ Section 30, Township 9N, and Range 64W containing 80.00 $250/acre by Dwyer of Bold Resources

#5 S½ NW¼ Section 30, Township 9N, and Range 64W containing 80.34 $250/acre by Dwyer of Bold Resources

#6 ALL (in Colorado) Section 14, Township 12N, and Range 64W containing 22.07 acres $114/acre by Bold Resources

#7 Lot 3, NE¼ SW¼ Section 31, Township 12N, and Range 64W containing 81.37 acres $607/acrea by Hoover and Stacy

#8 NW¼ Section 6, Township 8N, and Range 65W containing 160.00 $570.00/acre by Eagle Land Services

#9 Tract in the NW¼ Sec 30, Twnsp 8N, and Range 65W containing 7.56 $705/acres by Hoover and Stacy

#10 SW¼ SE¼ Section 18, Twnsp 9N, and Range 65W containing 40.00 $513/acre by Hoover and Stacy

#11 SW¼ Section 33, Township 9N, and Range 65W containing 160.00 $302/acre by Bold Resources

#12 W½ SE¼ Section 28, Township 11N, and Range 65W containing 80.00 $875/acre by Eagle Land

25-10N-64W (320 acres) $305/acre by Hannon and Associates on 03/31/10

Wyoming (similar geologic area) is receiving 16 2/3 or 12 1/2 percent on its lease auctions.

http://oilshalegas.com/niobrarashale.html Geological Map

May you have peace and prosper.