AllExperts > Oil/Gas 
Search      
Oil/Gas
Volunteer
Answers to thousands of questions
 Home · More Oil/Gas Questions · Answer Library  · Encyclopedia ·
More Oil/Gas Answers
Question Library

Ask a question about Oil/Gas
Volunteer
Experts of the Month
Expert Login

Awards

About Us
Tell friends
Link to Us
Disclaimer

 
 
 
 
About Alan H. Coogan
Expertise
Ohio geology, oil and gas fields and reservoirs leasing and mineral rights.Oil/water well contamination

Experience
50 years geologist, 30 yrs attorney 35 years in Ohio fields

Organizations
AAPG, AIPG. Ohio Bar Ass.

Publications
Bul. AAPG, AIPG, Northeastern Geology,Ohio geol. Survey, J. Paleontology, Revista Geol. Mex. Akro Law Review

Education/Credentials
PH. D., geology; J.D.

 
   

You are here:  Experts > Industry > Oil/Gas > Oil/Gas > MIneral Rights

Oil/Gas - MIneral Rights


Expert: Alan H. Coogan - 10/24/2009

Question
I recieved and oil and gas lease proposal today.  It is for 54.47 gross acres, 13.6175 net mineral acres in the Joseph Harper Survey, A-235 and 48.446 Gross Acres,24.2230 Net Mineral Acres in the John Trimble Survey, A-482 in Upshur County Tx.  The offer listing is 1)Paid Up five year primary term 2)150.00 per net mineral acre bonus = draft payment for $5676.08 3) 3/16 royalty. This appears on the offer page but in the actual lease it is listed at 1/8? How do I know if this is a good deal or not?  Is it common to negotiate these types of deals?  I have looked all around and haven't found if they are finding oil and gas around this area?  Just looking for a little insight.

Answer
Dear Kyle:
1. I can't keep up with the variety of offers across the country either. Local info (you neighbors) is a up-to-date source of what the market is like

2. The Texas RR Commission web site is a good place to start on what has been drilled.

3. This could just be speculation by a leasing company--the driller will be an assignee.

4. Looks like 1/8th is what you get unless changed.

5.5 years is likely too long.

6.Counter offer 2 years--see what happens.

7. If you don't live there and don't care much, take the cash.

Good luck
AHC

Add to this Answer   Ask a Question


 
User Agreement | Privacy Policy | Kids' Privacy Policy | Help
Copyright  © 2008 About, Inc. AllExperts, AllExperts.com, and About.com are registered trademarks of About, Inc. All rights reserved.