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Old 01-24-2008, 12:50 PM
 
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Does anyone out there know how much is the going rate per acre for Mineral rights in Montague County, Texas? Have been approached to lease my 50 acres and do not know if I should. How much is the average income per month on 50 acres if there is any positive production?
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Old 01-25-2008, 07:39 AM
 
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there is no way to give you the answer to your question because no one knows where your land is in relation to where the oil/gas reserves are they are drilling to find--

ask your neighbors what their offers were--maybe if you pool together you can get a better offer--that seems to be what some people in areas around fTW have done to maximize their royalty interests and leasing bonus...

regarding the avg monthly income--totatlly depends on the well and your interest in it...
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Old 02-06-2008, 04:09 PM
 
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Quote:
Originally Posted by zapetsof View Post
Does anyone out there know how much is the going rate per acre for Mineral rights in Montague County, Texas? Have been approached to lease my 50 acres and do not know if I should. How much is the average income per month on 50 acres if there is any positive production?

Just wondering if you ever got any information regarding Montague county? Does the Barnett Shale field run that far north?
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Old 02-23-2008, 03:49 PM
DFF
 
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Barnett does run up into Montague county. In fact that is one of the earliest areas developed. I don't know the reserves there but much of the Barnett will produce in excess of $1M per acre if well units are about 20 acres and proper fracturing is done. See Enjoy Gas for more info on typical cost to production numbers.

In Arlington, the leases are up to $17k per acre signing bonus plus 25% royalty. Sounds good until you find out you are "giving away" $500k per acre net.
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Old 03-29-2008, 08:09 PM
 
Location: Dallas
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Default Mineral Rights

I heard ya'll hit the big one! My rights are in Montague and have been in the family for over 100 years. Needless to say, I'm not parting with them. In the last 5 years, my royalty checks have gone up from $25/mo., to as high as $700/mo. in 2004. For the last year they have been $250 every month. You have to do what you think is best. But let me tell you this. A couple of years ago, a landman approached my sister about selling her rights. They offered her $14K and paid $6K. Beware the landman. Use your common sense, and don't get greedy. You'll make the right choice. I hope I helped. Best, purplewaikiki54
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Old 04-03-2008, 10:23 AM
DFF
 
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Chesapeake reports gross revenue from wells at DFW to be between $20 and $30 million. Optimum well spacing can be as little as 20 acres so you have enough space for about 2 wells if the land is shaped right. The land needs to be about a half mile long and about .2 miles wide for optimum drilling of two wells. See enjoy it!: So Where Is This Going? for further info.
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Old 08-12-2008, 01:52 PM
 
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Default Permit to Conduct Geophysical Operations

I received a letter from EOG Resources wanting the right to conduct a 3-D geophysical survey on property I have mineral rights to in Montague County. I don't own the surface anymore. Don't they need permission from the surface owner and is this something they normally pay you for the right to do? There was no mention of compensation in the letter.
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Old 08-13-2008, 08:14 AM
 
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they do pay surface owner for access and damages if there were any
but they want access to the info about YOUR minerals--they can't get that without your permission
why don't you call them and see
but really you need an attorney who knows o/g law to get you max payout for this and NO ties to leasing your mineral rights at this time...
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Old 08-13-2008, 09:40 AM
 
Location: Visitation between Wal-Mart & Home Depot
8,307 posts, read 38,666,280 times
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Quote:
Originally Posted by loves2read View Post
they do pay surface owner for access and damages if there were any
but they want access to the info about YOUR minerals--they can't get that without your permission
why don't you call them and see
but really you need an attorney who knows o/g law to get you max payout for this and NO ties to leasing your mineral rights at this time...
If you do not allow an exploration company to attach an option to lease to a seismic permit, they probably will not conduct the seismic shoot. If they want to shoot seismic, they are serious about developing the subject lands but do not know exactly what is out there. If they shoot and come back to you for a lease, you know that they found something and the situation is no longer equitable. They are just as likely to forget about it, I know I would. You can structure the deal in everyone's favor by crafting a lease option with a variable royalty. In other words, effective date of the lease option, the royalty is 22.5%. If they do not initiate actual drilling operations within 6 months it increases to 25%, another six months and it increases to 27.5%. Stop there or their bottom line is injured and it becomes unacceptable. That way their feet are to the fire to get a well drilled and get royalties rolling your way as soon as possible. As for bonus, I would expect to be paid at least $8,000 per net mineral acre, maybe more depending on where in Montague County your land is located. The Barnett starts to pinch out close to the Oklahoma border and the riskier the operation, the lower the fair bonus will be. A previous poster mentioned that the landman promised 14k and delivered 6k. What probably happened was the landman offered 14k per net mineral acre and the mineral owner owned 0.428 net mineral acres.

I've said this before, but if you do not know exactly what you own, where it is, and what portion you own it is next to impossible to get a good deal and trying to be a hardline negotiator can take you out of the equation. The first offer a company makes is not necessarily a bad deal. If you own a very small interest in a small tract, playing hard to get will probably get you nothing. If you own a considerable interest, let's say 200 net mineral acres or more (and sometimes less depending on the location of your interest), you have a bargaining position. If a landman tells you that the deal he is offering is the same deal the big interests have accepted, ask for some proof that you are getting the same terms. If he is telling the truth he will provide you with a copy of the other leases. If they are the same terms, that's the best you are going to get unless you can wrangle a higher bonus amount due to the small size of your interest.

Also, be wary of hiring a lawyer or 3rd party to negotiate for you. I have dealt with a lot of banks representing landowners who ask for ridiculous and untenable terms that wind up killing the project. Consult with more knowledgeable people, but you are probably better off representing yourself.
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Old 08-22-2008, 03:51 PM
 
4 posts, read 36,660 times
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I've got mineral rights on a couple of tracts south of Hwy 82 between Nocona and St Jo. They are doing seismic survey now. From the records I have, I own 100% mineral on 170 acres plus 100% minerals on 95 acres about 3 miles SW of the first place. Hoping for the best. I assume bonus amts are smaller on large tracts? (as sales $/acre is) $8,000/net mineral acre sounds wild to me.

Last edited by RRFan; 08-22-2008 at 04:00 PM..
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