- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Anyone have Oil lease experience?
Posted on 2/4/18 at 7:17 am to EvrybodysAllAmerican
Posted on 2/4/18 at 7:17 am to EvrybodysAllAmerican
I have some but it is limited as a landowner. Most experience is with pipeline companies' ROW & Servitudes. My older generation has an active lease with 10% royalty. It has limited production today. Look up Louisiana minerals perscription and you will see that the law is good for you even if the property is sold.
0
Posted on 2/14/18 at 5:13 pm to EvrybodysAllAmerican
Unless that $3,000 makes a difference in your life, I would hold off. If that's the case, ask for 25% royalties and hold firm (or settle on 22.5%).
If the $3,000 is needed, take the money. You don't know when/if you will get another offer. Also, you didn't mention the primary term. You can ask for two years as another negotiating tool.
Ty
Landman
If the $3,000 is needed, take the money. You don't know when/if you will get another offer. Also, you didn't mention the primary term. You can ask for two years as another negotiating tool.
Ty
Landman
Posted on 2/14/18 at 8:44 pm to EvrybodysAllAmerican
quote:For what time span?
They're offering $300/acre
quote:In Springfield?? That's a world away from all the AC activity I've seen. This would definitely be an outlier...
I'd guess you're being leased for Austin Chalk. I know EOG is broadly in that area
This post was edited on 2/14/18 at 8:49 pm
Posted on 2/15/18 at 1:26 am to tigerpawl
Sort of like that Helis well, I was scratching my head on that one.
Posted on 2/15/18 at 3:49 am to EvrybodysAllAmerican
One thing you can consider is going unleased on it. You get 100% of production after the well is paid for, minus the cost of production.
If she signs the lease she is binding your minerals to a contract that will be in place for a very long time. Who knows what the future holds. I would do a ton of research on it before she signed.
I would also research a Pugh clause and make sure that is included in the lease. Basically it covers the zone of production only, leaving above and below it unleased.
We got 25% during the Haynesville shale leasing. I wouldn't settle for anything less than that, especially given the dismal per acre lease bonus.
Do not trust landmen. Everything they say is bullshite. Look at them as car salesmen. The standard lease forms heavily favor the O&G industry. The same is true for the legal system.
As pointed out, 10 acres isn't alot to negotiate with, but it is hers and I would educate myself before I made the decision.
If she signs the lease she is binding your minerals to a contract that will be in place for a very long time. Who knows what the future holds. I would do a ton of research on it before she signed.
I would also research a Pugh clause and make sure that is included in the lease. Basically it covers the zone of production only, leaving above and below it unleased.
We got 25% during the Haynesville shale leasing. I wouldn't settle for anything less than that, especially given the dismal per acre lease bonus.
Do not trust landmen. Everything they say is bullshite. Look at them as car salesmen. The standard lease forms heavily favor the O&G industry. The same is true for the legal system.
As pointed out, 10 acres isn't alot to negotiate with, but it is hers and I would educate myself before I made the decision.
This post was edited on 2/15/18 at 3:55 am
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News