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 > Oil and Gas Lease Offer

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The Texan

Wellton, AZ

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Posted: 07/15/12 09:21am Link  |  Print  |  Notify Moderator

Texas requires a min of 350 acres per well and many of the leases are "pool" leases. In a pool lease, which you will be in, the lease is split between all the pool members and it can be pennies, or it can be big bucks, depending on your acreage. You need to talk to your neighboring property owners to see what they have been told and what they want to do. Texas RR Commission can use eminent domain to secure energy rights, if necessary, but seldom do.


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Liriope

Sun City AZ 85351

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Posted: 07/15/12 12:12pm Link  |  Print  |  Notify Moderator

I have 5 different leases on properties I own in TX. None actually have the equipment on any of my property. The lease is just for mineral under my property. I received from $6500 to $15,000 per acre as a bonus PLUS $25%, after expenses, of the profits.

One group in Parker County (about 30 miles west of FT Worth TX) signed a lease for $30,000 an acre bonus. I have never heard of a bonus of less than $1000 per acre signing bonus in this area.

Anyone with actual equipment on their property get substantially more. Make sure the contract has a clause, if they do not drill within the lease years. (most cases 3 years) they must renegotiate a new lease with you or at least pay you the same bonus again.I had a company that paid me $30,000 an acre, never drilled and then renegotiated with me for an additional lease bonus. Sweet!

Deb and Ed M

SW MI, USA

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Posted: 07/15/12 03:01pm Link  |  Print  |  Notify Moderator

Here in Michigan our Michigan State University Extension Services has a sample lease for consumers to read - I would guess that your extension services might have something similar?? Just so you can see what a GOOD lease looks like?? Make sure it includes how they will finish the area once they are done drilling - I've heard that YOU can be left holding the bag for "restoration" costs if you're not careful?

Grey Mountain

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Posted: 07/16/12 09:16am Link  |  Print  |  Notify Moderator

I am far from an expert on this, but my understanding is that if a company actually puts equipment on your property, that is another contract over and above the original lease of the mineral rights. There are many (possibly most) situations where the person who owns the surface rights does not own the mineral rights. In that case, the oil companies must negotiate to put equipment on the land.

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Liriope

Sun City AZ 85351

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Posted: 07/16/12 09:39am Link  |  Print  |  Notify Moderator

Grey Mountain--you are correct. The contract to place actual equipment on a property is entirely different than the contract lease to explore for minerals below someones property where there will be no equipment on the property. If you have a lease for a company like Chesapeake to explore for mineral rights under your property and no equipment, you may even not know where the equipment actually is located. It can be miles away.

I have no idea where the equipment is located on the 5 lease I have with Chesapeake.

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