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Oil/Gas/Oil Lease Value


Hi fred, I have no idea if you would know this or not. I have a farm not far outside of Seminole Texas. Most all of the land around mine was leased for oil maybe 6 years ago. The going rate for myself and most neighbors was $250 an acre. They have apparently hit oil on several neighbors parcels that abut my farm. If I have to re-up my lease what do they pay when oil has been found next door? Doesn't that make a lease a lot more expensive? Thanks A.

It could, but you can count on the oil company or their representative trying to get your lease for as little as the market will bear, so I'd check with other neighbors nearby they may be after as well to see what they were offered before signing. Having an oil well come in nicely next door should drive the price of a lease up some, but on the other hand if there's only one company offering to lease you then there won't be much competition. A good well in an area will usually bring in others though so I hope it works out that way for you.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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