AboutJames H. McConnell, CPL Expertise READ CAREFULLY BEFORE ASKING ME A QUESTION
I will try to answer questions about oil & gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not it Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term, the royalty and the amount offered. Failure to provide this information will result in the question being rejected.
I have answered more than 2300 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you.
If you do not rate the first answer, do not send a follow up, because I will reject it. If my time means so little to you that you feel that you cannot take your time to rate an answer, I do not have time to answer another question.
Experience I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.
Question QUESTION: Thanks for taking my question. I have 160 acres,surface and mineral rights in section 10 15s 25e Chaves co NM. My lease with PLLL expired in May. They are offering $125 bonus 20% royalty and 3 years with a 2 year option. I have not excepted this offer yet. I think it should be 25% royalty even if I have to take 0 bouns. What should I do.
ANSWER: I think you should ask for 25% royalty and a three year lease, no option to extend.
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QUESTION: Thanks again James for taking my first question and hopefully my follow up question. If PLLL does not want to go 25% on royalty, is forced pooling/intergration something they will use? and if so will it be to my detriment if they do?
ANSWER: You will have plenty of time before they do anything like pooling. They are asking for a lease that could last five years, so they are not in a rush to drill something. They obviously like the prospect or they would not be back trying to lease it.
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QUESTION: In Janurary of 2009 I spoke with an engenieer at PLLL. He said they were drilling down the section lines on section 3 and 2. Next to be drilled would be section 10 and 11. My section is 10 and PLLL's press release said they may be drilling in the 4th quarter of 2009 unless Natural gas prices change/go up sooner. Does this info change anything?
Answer Negotiating leases is like playing poker, if you want a sure thing, take the offer on the table. If you want to take my advice and just hold out for awhile, that's fine too. You can't dribble bits of information and expect a clear answer. This is the last follow up.
