We got an offer to lease in the mail a few days ago. The man says that his client is "actively drilling successful wells in Tyler County, Texas". He say that they have authorized him to purchase a 3 year paid up oil, gas and mineral lease, with a 1/5th royalty. He says that the XXXXXX family owns 1/2 the minerasl in the 33.1 and 159 acre tract, all the minerals in the 96 acre tract. They are paying a total flat fee of 100.00 to each lessor the the 3 leases where insufficient net acres exist to enable them to pay on a per acre basis.
I have never gotten such a small amount for a first lease (or for a renewal come to think of it). I know I said before that it's money we didn't have, but even I'm a bit put off by him stating they are drilling successful wells, yet only wanting to pay us 100.00.
My question is what happens if we don't go with this lease? I don't really understand how things work I guess. Do they just get to drill anyway and keep the money, in effect they keep our portion? Do the other lessors get to split our portion? I'm very confused at this point.
It's not a company we have ever gotten leases from in the past.
thanks for the help,