Thoughts on leasing for oil/minerals

[texbaylea]

Out of the blue, I received an offer to lease my mineral rights after 20 years of being ignored for my small holding. I am carefully considering this offer and will consult an attorney. This lease contains clauses I have never seen before in my two previous leases so I need to get a good explanation. The surface I own and the mineral rights are part of the same parcel but were conveyed to me by different routes so it is a little more complicated than usual.

The point of this is that this event got me to thinking back to when we had a productive oil lease. Then I remembered that there has been talk of a "windfall profits tax" on "big oil". There was a "windfall profits tax" law in existence back then and we paid a WPF on our small royalty payments.

A cautionary note: all such tax schemes sound good but end up being borne by the man at the bottom of the totem pole.

Vernon

 

[meadowlarkponds]

They are punching holes in the ground like crazy around here. Like you, I recently got such a letter on some property I haven't owned for 25 years, but retained the mineral rights.

Probably should have had an attorney look at it, but it read ok.

They are really going after the stuff.

 

[Judy Darby]

Hi, I found your message in a search for information about oil and gas leasing. I leased my land too early and for too little money when the landman came to north Louisiana. I am a freelance journalist so I started a website where landowners and neighborhood leasing coalitions can find one another and share information. Please contact me or go to mineralrightsonline.com and register. Judy

 

[EddieWalker]

I have the rights to my land and found that they will drill wether I'm included in the lease or not. If I want to get paid, I need to sign the lease agreement to get in on the payments if they drill a productive well.

The way it reads on my lease, they include my land in an area that they are drilling on. They need so many acres in order to drill, but they don't have to have all of it. If I'm not part of the lease, then I don't get any royalties. My check would be based on my number of acres in relation to the total number of acres on the lease for that well.

They don't drill on my land, so it was a win-win for me. I got $1,600 for the lease and then never drilled in the five years that they had the lease. Now that I'm thinking about it, the lease is just about up. I wonder if they will be contacting me again?

Good luck,
Eddie

 

[kossetx]

Thanks for the info Judy, I'll have to check that out. If folks get together it would help everyone become more informed.

They leased my land but they drilled on a tract across the creek from me. The lease on my place expires soon and I've been wondering what to do if they want to release.