How many have been contacted by gas/oil companies?

[DJ.]

We finally got a contract and finished up the deal. I'm happy because we could have done a lot worse.

No surface use lease
$19,000 per net mineral acre for a 3 year paid up term
25.5% royalty interest per net mineral acre
2 year paid up option to renew the primary term at 2/3rds the initial bonus offer (or $12,667 per net mineral acre)
Bonus payment calculation up to the middle of all streets
No warranty of title clause
Land Co. is responsible for all mortgage subordination costs

[Big T]

22,000 per acre 25% of gross, Arlington Tx

[AndrewCCM]

Yeah.. well here in my part of S. Arlington.. We were just informed that our $15k per acre that the HOA negotiated is now null and void (even after we all signed). Paloma dropped the deal...Conveniently after our HOA negotiated some leverage in the bylaws (by the homeowners vote) that gave them more power during this negotiation. Now it looks like nothing but a big lie to give the ASS. more power. Supposedly, they are renegotiating with Chesapeake/Dale this go around. Whatever.

For the record, the 25% of gross is a good thing. Don't count on much unless it's pre-expenses/NET. They will write off everything as losses for most of the lease duration.


I know who I'll be voting out soon.

I am not holding my breath on this whole thing...

[AndrewCCM]

Originally Posted by David_3

They are now up to $17000/acre.

Ain't America great?

Funny thing.. I bet your electricity rates will increase still.. They'll get that money back one way or the other.. Kinda like insurance rates.. We have one bad hail storm and they raise rates for the entire county...10 years pass with good weather and no reductions.. hrmm. "Great".

Gosh I sound bitter tonight.. I know why... I AM! :)

[David_3]

Originally Posted by AndrewCCM

We were just informed that our $15k per acre that the HOA negotiated is now null and void (even after we all signed).

That bites.....how do they get away with breaking individual contracts that people have already signed?

Even though our HOA has done some negotiating, they still tell us to sign with whomever we want. Of course it is best if everyone sticks together, but some people think they can squeeze out a few more bucks by playing games. That may come back to bite them. Chesapeake seems to have the best overall package, and that's who the majority seem to be going with around here. They already have a drill site chosen, and have a good infrastructure in place to actually start drilling. Remember, the goal here is to get a well in place (without screwing up the neighborhood) and to collect the royalties, as well as the bonus. They appear to be straight shooters. Another company has been shooting off their mouth about how they will beat any offer, but it sounds like BS to me and most everyone else too.

[Coelus]

I'd be more than happy to have someone bid on the lease rights on our 60 acres. Leaseing for corn pays the taxes, but that's about it.

[JohnT]

Last year, it looked like everyone was on their own in my neighborhood so I went ahead and signed a lease along with some other folks. I got notice last week that a group has been organized to negotiate for my part of Euless. Great...

[janetg]

interestingly enough - my family has been contacted today regarding our mineral rights, etc. anyone care to share the company that has contacted them? my mother (senile) could not remember their names, and the guy is supposed to call her tomorrow, and she's 'supposed' to have them call me.

thanks - janetg

[brad]

Cherokee Horn was the company that came in here and offered $400... which we laughed at. Current offer on the table (our group is still negotiating) is over five times that.

Just keep telling her that it won't hurt to wait.. she shouldn't jump at her first offer... most likely its someone who is trying to get something for nothing.

[David_3]

I signed with Chesapeake. The average going price seems to be somewhere between $15000 and $20000 per acre, plus a 25% "no cost" royalty. Be sure to get a "no surface use" clause in the contract, so they can't drill in your front yard.