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re: Oil companies drilling on your land in exchange for a percentage of what they find?
Posted on 5/1/18 at 9:57 am to TDcline
Posted on 5/1/18 at 9:57 am to TDcline
Yes, my family has been approached. They are also in central Louisiana. They refused because they thought the offer was shite and because of sentimental value.
0
Posted on 5/1/18 at 10:00 am to TDcline
quote:
Northern Evangeline so they’re pretty close to y’all.
Ok, are we related?
Posted on 5/1/18 at 10:07 am to thegreatboudini
That's pretty stout
Posted on 5/1/18 at 10:14 am to TH03
quote:
Uh that sounds like a normal oil and gas lease...
this
Posted on 5/1/18 at 10:30 am to patnuh
quote:
If you get 25% that is good. 20 off the bat is a good offer.
Nowadays, you can usually get a 22.5% lease but in some area it can be 25%. While as the landowner you may think you should get more, it’s the oil company that is taking the risk financially. The lease payment can sometimes bet the best
Part of the deal.
As a royalty owner, I know what I’m talking about.
Example: I have a small interest in some property in north Louisiana. About 8 years ago it was leased and I rec’d about 4 grand as my share. I probably haven’t rec’d $500 for the production !
This post was edited on 5/1/18 at 10:37 am
Posted on 5/1/18 at 11:41 am to TDcline
I would like to see pipeline Right-of-Way and Easement agreement structured like a oil & gas lease. I hope to accomplish this someday.
Posted on 5/1/18 at 12:26 pm to TDcline
Around here they are looking at trying to double up on AC and TMS. 900-1000/ acre and 20% is the offers everyone gets. Bigger land owners are able to negotiate a little better on percentages, surface rights, and timetables for drilling.
Posted on 5/1/18 at 12:28 pm to ElderTiger
quote:
As a royalty owner, I know what I’m talking about.
quote:
I rec’d about 4 grand as my share. I probably haven’t rec’d $500 for the production !
Posted on 5/1/18 at 12:33 pm to FelicianaTigerfan
quote:
Bigger land owners are able to negotiate a little better on percentages, surface rights, and timetables for drilling.
That’s for guys in the 1000s of acres usually. With multi unit laterals, landowners have lost leverage on surface rights and smart landowners have had drilling timetables for decades. Those are the guys with pughs and elevator clauses in there so they sign and get paid for every depth that gets drilled.
Posted on 5/1/18 at 12:35 pm to TDcline
quote:
They offered my parents 20% of what’s found. That seemed kinda too low to me
The standard offer is going to be x per acre and a % of royalties. During the NG craze in the early 2000's our property in NELA got $1,500/acre and 25% royalties (they only hit small pockets that sputtered quickly :( ). The offer is usually for something like 3-4 years with a lower renewal option after that time (if nothing is struck during that time).
Be sure your parents's agreement specifies the depth range. This arrangement (a Pugh clause) allows for multiple leases on the same property just for different depth ranges, otherwise an agreement without it usually gives the driller the rights as deep as they want to go.
Also, they should talk with neighbors to see what they're getting.
Last thought... if they think there's a solid chance of there being oil/gas under their feet, have them hold firm on a rate. If they don't sign, they haven't lost anything . If the driller gets everyone around them and they hold out, they'll be in a better position (because they aren't going to drill a tract without having an agreement).
This post was edited on 5/1/18 at 12:40 pm
Posted on 5/1/18 at 12:39 pm to Bard
quote:
otherwise an agreement without it usually gives the driller the rights as deep as they want to go.
A Pugh doesn’t limit depth. It releases depths 100 feet below the deepest depth drilled. Or in the case of a vertical Pugh, it releases everything not included in a producing unit.
They can drill as far as they want with a Pugh clause, it releases 100 feet below that.
This post was edited on 5/1/18 at 12:39 pm
Posted on 5/1/18 at 12:42 pm to Bard
quote:
During the NG craze in the early 2000's
People were losing their minds when I lived up in Bossier around then. Neighbors in my little cookie cutter neighborhood on .4 acre lots were convinced the gas payouts were going to put their kids through college. They all banded together and hired an O&G lawyer. I exempted myself and took a pretty sweet one time paycheck from the exploration company for my portion. I was called every manner of fool by my neighbors.
The week after my check went in the bank, the company pulled out of the area and stopped negotiating for rights. They all got squat and I sold my place two years later to move back south.
Posted on 5/1/18 at 12:47 pm to jbgleason
quote:
Neighbors in my little cookie cutter neighborhood on .4 acre lots were convinced the gas payouts were going to put their kids through college. They all banded together and hired an O&G lawyer. I exempted myself and took a pretty sweet one time paycheck from the exploration company for my portion. I was called every manner of fool by my neighbors.
I fricking hated those idiots.
What part of bossier?
This post was edited on 5/1/18 at 12:47 pm
Posted on 5/1/18 at 12:49 pm to TheFonz
That gif is the first thing I thought of when I read OP
Posted on 5/1/18 at 1:10 pm to TH03
Stockwell area but in the back. What is that called over there? North Bossier?
Posted on 5/1/18 at 1:11 pm to TH03
quote:
A Pugh doesn’t limit depth.
A vertical one can. An example would be the following language: "pool or combine lands from the surface of the earth to 7654 feet beneath the surface of the earth”. This releases anything below the specified feet.
I know this from personal experience as we've had two different agreements going on the same piece of land at the same time. One was for surface - ~3k (Reynolds coal seam in the Wilcox play) and the other was for depths below that (each with different companies).
Posted on 5/1/18 at 1:25 pm to Bard
quote:
pool or combine lands from the surface of the earth to 7654 feet beneath the surface of the earth”. This releases anything below the specified feet.
That would be a specific depth limitation and not a Pugh clause. A Pugh clause goes into effect after the primary term of the lease. That limitation to 7654 would be in effect from the effective date of the lease.
Trust me, I’ve read and had to interpret every Pugh and depth limitation/severance clause there is.
This post was edited on 5/1/18 at 1:27 pm
Posted on 5/1/18 at 1:39 pm to TH03
I defer to your greater experience. It's been a long time so I may just be lumping all the stipulations under "Pugh".
Posted on 5/1/18 at 2:03 pm to TH03
quote:
Bigger land owners are able to negotiate a little better
quote:
That’s for guys in the 1000s of acres usually
Uhh yea, that's why I specifically stated the bigger land owners
Posted on 5/1/18 at 2:05 pm to FelicianaTigerfan
(no message)
This post was edited on 5/1/18 at 2:07 pm
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