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Oil companies drilling on your land in exchange for a percentage of what they find?
Posted on 4/30/18 at 7:03 pm
Posted on 4/30/18 at 7:03 pm
My parents have some land in central Louisiana. Not a ton... about 10 acres or so.
They were approached at their home today by a surveyor who offered them his company’s resources to drill on their land. Per the offer, they would get a small amount up front and will get a percentage of what is found.
Has anyone else been approached like this? Seemed sort of odd to me. I know of at least one older family in the area who had oil discovered on their land and they received a similar agreement. TIA
They were approached at their home today by a surveyor who offered them his company’s resources to drill on their land. Per the offer, they would get a small amount up front and will get a percentage of what is found.
Has anyone else been approached like this? Seemed sort of odd to me. I know of at least one older family in the area who had oil discovered on their land and they received a similar agreement. TIA
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Posted on 4/30/18 at 7:03 pm to TDcline
Uh that sounds like a normal oil and gas lease...
What state is this? Did they offer a per acreage payment and a percentage royalty?
What state is this? Did they offer a per acreage payment and a percentage royalty?
This post was edited on 4/30/18 at 7:04 pm
Posted on 4/30/18 at 7:04 pm to TDcline
Sounds normal to me. You can negotiate more if you’re good.
This post was edited on 4/30/18 at 7:05 pm
Posted on 4/30/18 at 7:04 pm to TDcline
Been that way for over 80 years.
Posted on 4/30/18 at 7:05 pm to TH03
They offered my parents 20% of what’s found. That seemed kinda too low to me
Posted on 4/30/18 at 7:05 pm to TDcline
Tell them to frick off and drill yourself.
Posted on 4/30/18 at 7:06 pm to TDcline
quote:
They offered my parents 20% of what’s found. That seemed kinda too low to me
That’s pretty normal since they do jack shite. The company drilling funds 100% of the operation and gives you 20%.
Oil isn’t owned until it’s extracted. Your parents have the mineral rights, meaning the rights to explore for minerals, they don’t own the minerals.
This post was edited on 4/30/18 at 7:06 pm
Posted on 4/30/18 at 7:06 pm to TDcline
quote:
They offered my parents 20% of what’s found. That seemed kinda too low to me
Lol. Drill away baw
Posted on 4/30/18 at 7:06 pm to TDcline
If you get 25% that is good. 20 off the bat is a good offer.
Posted on 4/30/18 at 7:07 pm to TDcline
quote:
Per the offer, they would get a small amount up front and will get a percentage of what is found.
My grandfather has dealt with this. He has about 40 acres in Central and he allowed them to do some small drilling and dynamite testing for natural gas.
If they found a big reserve he wasn't going to get rich or anything. The area they were looking is so huge that he'd get the % of the total area that his land comprises or something like that.
This post was edited on 4/30/18 at 7:07 pm
Posted on 4/30/18 at 7:07 pm to High C
quote:
drill yourself.
like 67% sure its against some type of sex law in Louisiana to drill yourself
Posted on 4/30/18 at 7:08 pm to TDcline
Unless you know about Pugh Clauses, shut in payments, and a host of other minutia, you need an oil and gas lawyer.
Posted on 4/30/18 at 7:08 pm to TDcline
No different than owning land and getting a percentage of utilities.
Posted on 4/30/18 at 7:08 pm to fallguy_1978
You get the share of your property inside the drilling unit. Which in most cases in Louisiana is 640 acres.
So you’d get 20% of your 40 acre share in that 640 acre drilling unit.
So you’d get 20% of your 40 acre share in that 640 acre drilling unit.
Posted on 4/30/18 at 7:09 pm to Jim Rockford
quote:
you need an oil and gas lawyer.
For 10 acres
Pughs are pretty standard nowadays anyways.
This post was edited on 4/30/18 at 7:10 pm
Posted on 4/30/18 at 7:09 pm to TDcline
my family got the same kind of offer when I was a kid, they didn't find any oil though 
quote:I always heard it was usually 1/6, so that's actually a bit high
They offered my parents 20% of what’s found. That seemed kinda too low to me
Posted on 4/30/18 at 7:11 pm to TDcline
We got $750/acre and 26% about 2 months ago. We were the last to sign in our area. Southern Rapides Parish.
Posted on 4/30/18 at 7:11 pm to Kafka
Yea but they had a nice gravel parking lot after right?
Posted on 4/30/18 at 7:11 pm to TH03
quote:
So you’d get 20% of your 40 acre share in that 640 acre drilling unit.
That sounds about right. I don't remember all of the details he told me. His land is part of the Tuscaloosa Shale
Posted on 4/30/18 at 7:12 pm to TDcline
That seems odd to you?
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