What is going rate for Hockley County

I was paid $75 an acre 3/16th royalty for 3 year oil lease on property inherited from my Grandfather between Levelland and Littlefield. Never drilled. The person leasing it seems to have disappeared and no way to contact. Do these guys get people like me to lease cheap, then sell lease to someone else for high price and then disappear when the last lease buyer realizes what happened? Both times in recent years when it was leased, this same thing happened. The guy leasing from me and cousins promises drilling within the year and says geology shows large lake of oil below the property and has potential to make us millions. How do we find an honorable company to lease and really drill. How do we get an accurate geology report? Is it possible to have lease cancelled if guy that leased from us has disappeared? Also where can I find out if he has leased it out and to whom?

Who was the lessee? Probably can’t be cancelled until it expired. Sounds like a lease flipper. May want to check the Clark’s records to see if your lease has been assigned.

Lessee was Texas Permian Oil and Gas, sole owner Larry C. Talley Jr. Rick Humphrey originally contacted us to say Talley was interested. I later found that Talley Sr. has been involved in fraud and Jr. is involved in multiple businesses none of which seem to last long. Not a good sign of honorable intentions in my opinion. I will try to find the Clark records. Also to lease our property requires mutual consent of all cousins and word is that some were never contacted as represented to me. Two of the cousins are retired oil and gas people and would have never agreed to such a deal. I am guessing Talley leased to another outfit for higher price and now they have discovered he didn't have all the consent necessary. Talley will not answer emails, his phone rings no answer or machine, and his cell mail box has been full for some time. Seems many may be looking for him.

How do I find the Clark records?

Sam,

I could be wrong but I think Mr. Caldwell meant Hockley County 'Clerk' Office. Here is a link:

http://www.co.hockley.tx.us/default.aspx?Hockley_County/County.Clerk

Clint Liles

Sam Champie said:

How do I find the Clark records?

Yes, the county clerk deed records.

Thanks, I found the records and no record of assignment. Not sure what is going on with Talley, but wish I had known about this forum a couple years ago. Now, what do you feel is a fair price one should ask when the lease is up? He has a 2 years renewal clause which I doubt he will use. Where can I find a geology report for this property?

Landman called on mineral acreage just outside Levelland on the Sundown Highway. Offer was 20%- 5yr-$300. After a little discussion the offer changed to 25%-3yr.-$300. This man claimed to represent the actual operating company and not a flipper. Also claimed the company had intentions to do a horizontal drill. Sure. Said we could use our own lease agreement if desired. What is anybody seeing or hearing on current cash for 25% leases? Only 45 acres involved. Is there much interest in Hockley for horizontal?