How many have been contacted by gas/oil companies?

[AndrewCCM]

Just wondering how many people here have had gas/oil companies contact them wanting to lease mineral rights recently? Our entire subdivision received notice this past week. Haven't gone over it yet.. but it looks like $3000 per acre + 25% royalty...5yr lease. Chesapeake Oil/Gas co...

Just curious how many others have had this come up recently...they are popping up everywhere here in D/FW. LOL

[gregt1310]

Originally Posted by AndrewCCM

Just wondering how many people here have had gas/oil companies contact them wanting to lease mineral rights recently? Our entire subdivision received notice this past week. Haven't gone over it yet.. but it looks like $3000 per acre + 25% royalty...5yr lease. Chesapeake Oil/Gas co...

Just curious how many others have had this come up recently...they are popping up everywhere here in D/FW. LOL

Andrew - I am in Mansfield, and we have been contacted also. I am the President of our HOA, of about 150 homes. Our terms were not near as nice. The original company who contacted us was Harding. They initially offered $1500 per acre + 20% royalty. We hired an oil and gas attorney because the HOA owns about 11 acres of common property (while most of the houses are about ¼ - ½ acre). He talked to quite a few companies, but ended up going with Harding.

Our final deal was for $3000 per acre + 22.5% royalty.

Harding did a joint venture with Exxon/Mobil and called themselves DDJet.

We'll have to see what the royalties are like ONCE they decide to drill. Probably looking at least a year.

Did Chesapeake say when they would be drilling? Do they have a suitable spot to drill??

Greg

[guitarbug]

Just got one to. Thanks Andrew, I almost forgot about it. now I have to start digging through paperwork. With ours I am not sure but I think it amounts to a small hill of beans per month.

[David_3]

I got an offer a few weeks ago. Don't remember how much. Not really interested, either. If they want it bad enough, they'll get in touch again.

[AndrewCCM]

Originally Posted by David_3

I got an offer a few weeks ago. Don't remember how much. Not really interested, either. If they want it bad enough, they'll get in touch again.

The thing is...they'll drill anyway..just around you..and still get it. 330ft easement as I understand it.

[David_3]

Originally Posted by AndrewCCM

The thing is...they'll drill anyway..just around you..and still get it. 330ft easement as I understand it.

So be it.

[AndrewCCM]

Originally Posted by David_3

So be it.

Yep.

[bondarnes]

I was first contacted in 2003 and signed a lease for my two and a half acres. It was almost 3 years before they actually drilled. It took them most of that time putting together enough property to total 40 acres the minimum to drill. They also said it wouldn't do any good to drill before the pipeline was laid. My well is amost a quarter mile away over a hill. Can't even see it.

My monthly checks run between $400 and $800 depending on the price of gas and the amount of gas taken out. The church next door to me has about 10 acres, but they wanted no part of it. Why would you turn down $1500. per month? The private school on the other side of me has 90 acres so they have two wells. They have done a lot of needed repairs with their income.

[Ropinamoment]

This makes me wonder. We have pipelines and even a well on our property. I wonder about the mineral rights and money. I'll have to look into this. There is nothing being pumped out of the well, but you'd think the pipelines running across might be an issue too. Thanks for bringing this up. What I hate about the pipelines and well is that we can't build out building on the property if they are too close to the pipelines or well. It makes it hard to improve the property.

[AndrewCCM]

Originally Posted by bondarnes

I was first contacted in 2003 and signed a lease for my two and a half acres. It was almost 3 years before they actually drilled. It took them most of that time putting together enough property to total 40 acres the minimum to drill. They also said it wouldn't do any good to drill before the pipeline was laid. My well is amost a quarter mile away over a hill. Can't even see it.

My monthly checks run between $400 and $800 depending on the price of gas and the amount of gas taken out. The church next door to me has about 10 acres, but they wanted no part of it. Why would you turn down $1500. per month? The private school on the other side of me has 90 acres so they have two wells. They have done a lot of needed repairs with their income.

Yeah.. I plan on doing a bit of research.. Apparently, there are a couple of companies sending out offers here in our area. We only received one offer, where some of my neighbors received 2 or none. We're all part of the same deal... They even had a "HEATED" public meeting the other day (for the one that I did NOT receive)... Confusing stuff.. I plan to probably sign one eventually.. No use not collecting the money when they are going to do it anyway. They already have the land about 1/4 mile away from me.

BTW: This is the Fannin Farm subdivision in Arlington.

[guitarbug]

Originally Posted by AndrewCCM

Yeah.. I plan on doing a bit of research.. Apparently, there are a couple of companies sending out offers here in our area. We only received one offer, where some of my neighbors received 2 or none. We're all part of the same deal... They even had a "HEATED" public meeting the other day (for the one that I did NOT receive)... Confusing stuff.. I plan to probably sign one eventually.. No use not collecting the money when they are going to do it anyway. They already have the land about 1/4 mile away from me.

BTW: This is the Fannin Farm subdivision in Arlington.

Andrew, let me know what you find out. We only got one offer from Harding and I assumed that we would not have a choice or any other offers . We got the proposal from Harding DDJET LLP. 1500.00 per mineral acre and 20 % royalty with a bonus $355.00 , I wonder what it would amout to monthly? Can I quit working my A&&s off and do photography full time now ? LOL>

[iCe]

Originally Posted by AndrewCCM

Just wondering how many people here have had gas/oil companies contact them wanting to lease mineral rights recently? Our entire subdivision received notice this past week. Haven't gone over it yet.. but it looks like $3000 per acre + 25% royalty...5yr lease. Chesapeake Oil/Gas co...

Just curious how many others have had this come up recently...they are popping up everywhere here in D/FW. LOL

Chesapeake is reputable. Good royalty! Are you sure it's 25%

[AndrewCCM]

Originally Posted by iCe

Chesapeake is reputable. Good royalty! Are you sure it's 25%

Positive.

Having our neighbor lawyer go through the fine print...I hear that a lot of the time they calculate royalty based on net after expenses...This significantly changes things. Everything I read says to negotiate that to based off of gross if at all possible.

[iCe]

Absolutely try to get a percentage of gross. Good idea letting a lawyer go through it. Too many people sign for the quick money. I used to have landmen working at one of my plants back when I was a manager (or mangler) and they never paid everyone the same. It's all about what you know about their game. Good luck... I do a lot of work up around Cleburne now. The field is hot. The downside is that if they hit it good your neighborhood isn't going to fare all that well. Oilfield equipment is hard on the infrastructure (roads). I can tell the difference around Cleburne from the time before and after the boom there. So... if you hit... it will be good money... it won't last... and they'll tear all the roads up getting it.

[AndrewCCM]

That would be VERY VERY VERY VERY bad.. Our neighborhood is very nice and people really care about it's appearance and upkeep. If they hose up the roads and wooded greenbelts around us, there will be hell to pay. I can just see it now... LOL