mineral rights Montague County

[loves2read]

not necessarily--having one mineral owner on large tract simpliies things from o/g production standpoint in lots of ways
and frankly why would someone with MORE land take less than someone with 10-20 acres...
this is not like where if you buy more you get a discounted deal...like golf balls or something...

[Tioga]

Hope you folks down in Texas don't mind me buttin' in on your topic a bit. I'm in upstate NY. There are about 5 counties here...generally rural to small/midsize towns that are now in the sights of the gas companies. While there has always been a small interest in exploration, the new horizontal drilling techniques may open up(according to geologists), some of the last big gas finds in the lower 48. Not being gas/oil country, this(in my opinion) has been a boon to the landmen working leases. The local press has tried to be informative. Groups have formed. Some have signed leases. Others have decided to wait. Our governor has put an 8 month moratorium on drilling permits while regs/enforcement/laws are brought up to date. There have been community forums(put on by the NY dept of Agr. to enlighten folks as to what good/not so good to expect. Your area gets mentioned regularly in news articles. I'm open to any advice you may want to send our way. Thanks.

[jimboburnsy]

Originally Posted by Tioga

Hope you folks down in Texas don't mind me buttin' in on your topic a bit. I'm in upstate NY. There are about 5 counties here...generally rural to small/midsize towns that are now in the sights of the gas companies. While there has always been a small interest in exploration, the new horizontal drilling techniques may open up(according to geologists), some of the last big gas finds in the lower 48. Not being gas/oil country, this(in my opinion) has been a boon to the landmen working leases. The local press has tried to be informative. Groups have formed. Some have signed leases. Others have decided to wait. Our governor has put an 8 month moratorium on drilling permits while regs/enforcement/laws are brought up to date. There have been community forums(put on by the NY dept of Agr. to enlighten folks as to what good/not so good to expect. Your area gets mentioned regularly in news articles. I'm open to any advice you may want to send our way. Thanks.

Marcellus shale play is going to be huge. A little birdy told me that Range Resources just hit a huge well (16 MMCFD) in Washington County, just south of Pittsburg. The Marcellus extends into NY State, but I'm unsure about how far it goes. Bonus amounts, I've heard, are going up fairly high but I think that royalties are still around 1/8. Keep in mind that leasing and terms are entirely regional. Don't expect to get what people are getting in the Louisiana Haynesville play or the Barnett Shale. Don't roll over if you feel like you're getting screwed, but be careful how hard you play ball as the Marcellus is really big and if you want terms that are unfavorable compared to your neighbor, guess who gets the well...

[Sandal21]

Can anybody help?

I have been approached to lease mineral rights on a property located about
6 miles NE of Montague. They have initially offered $300 per acre signing bonus and 20% royalties. Does this sound about right? How do I find out what the surrounding area is leased for?

Thank in advance!
sandal21

[loves2read]

lease prices have been dropping in the Barnett Shale leasing IN Fort Worth area because price of natural gas has dropped so precipitously and economy is probably going to be slow for year or so...
some people were offered as much as 25-27K an acre...now companies are offering 5K an acre...
it all depending on where you are...
ask your neighbors...

[jimboburnsy]

Originally Posted by Sandal21

Can anybody help?

I have been approached to lease mineral rights on a property located about
6 miles NE of Montague. They have initially offered $300 per acre signing bonus and 20% royalties. Does this sound about right? How do I find out what the surrounding area is leased for?

Thank in advance!
sandal21

My knee jerk would be to drop the bonus to $200/ac. with a 25% royalty. Unless you're in a crazy resource play, your royalty is the valuable asset.

[loves2read]

true about value being in royalties but with some companies a 25% royalty to lease holder is just not enough to cover their end/splits

[RRFan]

Originally Posted by Sandal21

Can anybody help?

I have been approached to lease mineral rights on a property located about
6 miles NE of Montague. They have initially offered $300 per acre signing bonus and 20% royalties. Does this sound about right? How do I find out what the surrounding area is leased for?

Thank in advance!
sandal21

From what I hear, EOG's standard offer in the area is $500/net mineral acre bonus and 20% royalty. Unless you have substantial mineral ownership, you really don't have much bargaining power. Also, they can just get a lease on your neighbor and slant drill into the oil/gas beneath you and bypass you completely if they want to. (at least that's what I've been told)