Deputytex
What state are you asking about? There are probably 10 Fayette Counties around the US.
I don't know the answer to your question. The $/ac are always going to be fairly low, so you may be best off to get the land protections and terms that you want rather than worrying about the monetary compensation.
Texas,Seitel offered $15/ac that I thought was very low.Do you think they would give $40/ac.
I can only speak for Fayette County Texas. I have no idea what their offer rates are going to be today with all the herd mentality following the oil price drop. Back when they were doing a big shoot three or so years ago when oil prices were $100/bbl, their standard offer was $15/acre. They would easily go to $20, even on relatively small tracts. Our local attorney was able to get $30 for most if not all the agreements that went through him. Obviously, the larger tracts had no problem getting $30 even without an attorney; but, IMO, as Mr. Bell just said, agreement terms are considerable more important than a few dollars especially on smaller tracts. I never heard of anyone getting more than $30 in our county or surrounding counties.
Good Luck!
Thanks I am going to try and get $30/ac. from Seitel 3D
Another question is how much should a land and mineral owner ask for in a new lease between Muldoon and Cistern tx. at Old Smithville Hwy. and Rauder rd..On a 3 year term / bonus money per acre and royalty %? Our lease will run out 01/06/15 and we have 160 acres. The present oil company just wants to extend the lease 2 years for 350 an acre. However I want a new lease and a new oil company!
A question that begs an answer. Are they seeking a mineral permit or surface access? In Texas, generally speaking, the right to shoot seismic is a right granted in the granting clause of the oil and gas lease -- whether specifically stated or not. In Louisiana, for example, the right to shoot geophysics must be specifically stated in the oil and gas lease for that right to be granted.
If your land is currently under lease, then they are looking for surface access only. If your is not under lease, or if your lease form did not grant geophysical rights, they are looking for mineral and/or surface access.
A lot depends on the size of the tract and whether other co-owners are involved. In Texas, any mineral co-tenant can grant the right to shoot seismic and the other co-tenants can do nothing to stop them.
There are more questions left than answers already offered.
If surface issues are involved, I recommend a good agreement. Many companies want you to agree to something and pay you if and when you are crossed. To me, that is bad business on your part. If someone wants me to sign something, they better have their checkbook open. Also, really consider a single use permit, so that it cannot be assigned to other seismic companies.
Best
Buddy Cotten
As few as two months ago, I would have gladly at least given you my opinion; but, right now it is just a turkey shoot. Two to three months ago, $700 and 22.5% and in some cases $800 and 21% were pretty much the top numbers. That was for a 3 year primary and another $700-$800 for a two year option. Plus the company I leased to were very accommodating with the lease itself.
I'm not sure where Rauder Rd is located; but, most of the area along Old Smithville Road and back toward Muldoon was leased by Deanli/Argent and the $350 plus 20% and a not so good lease was pretty much the going price for them back 3-5 years ago. Of course, they were the first ones in our area starting in 2008 and they gobbled up a lot of acres for $100 and 1/6th royalty before people smartened up. All of those initial leases have either been drilled and are HBP now or the leases have expired.
I leased to a totally different company and have some very strong feelings about some of the others, so If you are interested, Friend me and I would be glad to discuss these issues with you.
Good Luck!
Deputytex said:
Thanks I am going to try and get $30/ac. from Seitel 3D
Another question is how much should a land and mineral owner ask for in a new lease between Muldoon and Cistern tx. at Old Smithville Hwy. and Rauder rd..On a 3 year term / bonus money per acre and royalty %? Our lease will run out 01/06/15 and we have 160 acres. The present oil company just wants to extend the lease 2 years for 350 an acre. However I want a new lease and a new oil company!
Bigfoot said:
As few as two months ago, I would have gladly at least given you my opinion; but, right now it is just a turkey shoot. Two to three months ago, $700 and 22.5% and in some cases $800 and 21% were pretty much the top numbers. That was for a 3 year primary and another $700-$800 for a two year option. Plus the company I leased to were very accommodating with the lease itself.
I'm not sure where Rauder Rd is located; but, most of the area along Old Smithville Road and back toward Muldoon was leased by Deanli/Argent and the $350 plus 20% and a not so good lease was pretty much the going price for them back 3-5 years ago. Of course, they were the first ones in our area starting in 2008 and they gobbled up a lot of acres for $100 and 1/6th royalty before people smartened up. All of those initial leases have either been drilled and are HBP now or the leases have expired.
I leased to a totally different company and have some very strong feelings about some of the others, so If you are interested, Friend me and I would be glad to discuss these issues with you.
Good Luck!
Deputytex said:Thanks I am going to try and get $30/ac. from Seitel 3D
Another question is how much should a land and mineral owner ask for in a new lease between Muldoon and Cistern tx. at Old Smithville Hwy. and Rauder rd..On a 3 year term / bonus money per acre and royalty %? Our lease will run out 01/06/15 and we have 160 acres. The present oil company just wants to extend the lease 2 years for 350 an acre. However I want a new lease and a new oil company!
Bigfoot who is a good company to lease to in the Stellar ,Rauder rd area.Thats one road to the left past Boehnke rd on Old Smithville hwy. Also what is a good lease clauses, terms and royalties.I am leased to Clayton Williams now and it will run out 1/6/15.Who are you leased to? Thanks Deputytex
I went into the CAD interactive map and found Rauder Road. There have been some extremely good chalk wells just a little North of you, right near Old Lockhart Road and Argent drilled at least one and maybe two wells a little North of you and East of Old Smithville Road.
I don't mind getting into generalities on the open forum; but, if you will friend me, I will give you my e-mail address and I will share my most cherished thoughts you. One thing for sure I'm not a Clatie fan. Had some pipeline dealings with his outfit back in the late 80's. However, anyway we look at it, this is a tough time for a lease to run.
Thanks
Deputytex said:
Bigfoot who is a good company to lease to in the Stellar ,Rauder rd area.Thats one road to the left past Boehnke rd on Old Smithville hwy. Also what is a good lease clauses, terms and royalties.I am leased to Clayton Williams now and it will run out 1/6/15.Who are you leased to? Thanks Deputytex