West Virginia Lease

We have a fractional interest of roughly 125 acres in West Virginia. Our share equates to about 40 acres. All of the other interest owners have signed with a West Virginia oil and gas company. This company has offered us a lease of 15 percent of the oil with a promise to drill in three years. However, we are not being offered any rental rate nor are we offered a bonus of any kind. We have an attorney who negotiated this lease but we do not think it is fair. What is the best way to negotiate a better lease at this point with a rental rate? What are the going rates in West Virginia for bonuses or rental rates? Your feedback is appreciated. Thank you.

mike, there is a company called advanced royalty solutions and they might be a good place to start! they offer numerous services one of which they will help you negotiate a lease. they are very knowledgeable and will answer any questions that you might have. veronica english is the contact person and she will help you any way she can. if you would like more info on them please let me know.

Which county?



jim hillman said:

mike, there is a company called advanced royalty solutions and they might be a good place to start! they offer numerous services one of which they will help you negotiate a lease. they are very knowledgeable and will answer any questions that you might have. veronica english is the contact person and she will help you any way she can. if you would like more info on them please let me know.



jim hillman said:

mike, there is a company called advanced royalty solutions and they might be a good place to start! they offer numerous services one of which they will help you negotiate a lease. they are very knowledgeable and will answer any questions that you might have. veronica english is the contact person and she will help you any way she can. if you would like more info on them please let me know.

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles

Charles,

Any information is appreciated. Could you please email it to me?

Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles


Charles,

I need to correct one area. There was no bonus offered, and there was a rental rate offered of about $10,000 as a One Time payment for the full five years. It does not seem to be competitive to me. Also, we do not own the land. We own the oil/gas rights, and are are fractional owners. We are told that our fractional share equates to about 40-50 acres of the 125 acres. The other fractional owners are already signed, and we understand their leases are even less favorable. We aren't sure if we have to use the same oil company.
Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles

I need to know what county your land is in. What Section, Township and Range would help as well.



Mg said:


Charles,

I need to correct one area. There was no bonus offered, and the rental rate offered is $10,000 as a One Time payment for the full five years. It does not seem to be competitive to me.
Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles

Charles

Can I email the details to you? I would rather not post that.

Charles Emery Tooke III said:

I need to know what county your land is in. What Section, Township and Range would help as well.



Mg said:


Charles,

I need to correct one area. There was no bonus offered, and the rental rate offered is $10,000 as a One Time payment for the full five years. It does not seem to be competitive to me.
Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles

Doddridge County--Salem WVA area...I don't know the range or township.

Charles Emery Tooke III said:

I need to know what county your land is in. What Section, Township and Range would help as well.



Mg said:


Charles,

I need to correct one area. There was no bonus offered, and the rental rate offered is $10,000 as a One Time payment for the full five years. It does not seem to be competitive to me.
Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles

Mg -

Thanks for the invite - one can never have too many friends. Well, unless you count a couple of mine.

The $10,000 as a one time payment would be a Bonus payment of $250 per net mineral acre for your undivided "40 acres" interest for a straight 5 year lease.

That is the "Paid Up" lease I think I described before: No annual rentals

As to whether that is competitive depends upon where the land is.

My contact info:

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

fieldlandservices@gmail.com

713-408-2850 Cell



Mg said:

Charles

Can I email the details to you? I would rather not post that.

Charles Emery Tooke III said:

I need to know what county your land is in. What Section, Township and Range would help as well.



Mg said:


Charles,

I need to correct one area. There was no bonus offered, and the rental rate offered is $10,000 as a One Time payment for the full five years. It does not seem to be competitive to me.
Charles Emery Tooke III said:

Mg -

I am a Certified Professional Landman in Fort Worth, Texas, with over 30 years of experience in the oil and gas industry.

Most companies use "Paid Up" lease forns now, wherein your annual rental payments are all paid up front.

I have heard of "free" leases, where the promise of the drilling of a well is the moving consideration, but they are very rare and really only justifiable under certain circumstances.

I would never advise that you enter into one and find it unusual that an Attorney has suggested that you do.

Bonus payments in certain parts of (northern) West Virginia have reached thousands of dollars per net mineral acre in recent months, with retained royalties increasing as well.

I would suggest you consider consulting a different attorney.

And, if you want, I'll be happy to send you contact information for some of the more legitimate companies operating in your area. They may want to offer you a competitive bid for your lease.

Hope this helps -

Charles