OT: Mineral Lease

by turpentinechaser on Oct 16, 2007 3:32 PM CDT

In the mail the other day I received a contract from Chesapeake Energy asking for my mineral rights for 5 years for a 22% royalty plus a signing bonus. The thing I dont understand is its not like I have a bunch of land. Just a normal size house and yard in a 20 year old subdivision in North Fort Worth. There is a bunch of land to the west of our subdvision with a big gas well . My question is has anyone done this before and is there anything I should look out for ?

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I work for a small oil and gas company

If you'll email me at jhoke@panhandleoilandgas.com I will talk to a couple people and let you know if it's a good deal. I work at a small company so I can talk to a landman and geologist in minutes. BTW, congrats you lucky bastard.

by OKC Ranger Fan on Oct 16, 2007 3:28 PM CDT reply actions

oh, the email is so you can give me the location

of the minerals.

by OKC Ranger Fan on Oct 16, 2007 3:39 PM CDT up reply actions

email

coming at you...

by turpentinechaser on Oct 16, 2007 3:45 PM CDT up reply actions

To clarify...

they aren't paying you so that they can erect a drill on your property, they're paying you for the gas under your property.

I got $1,600.00 for the initial lease, and 23% royalty once they start drilling. Since I own about a half acre, it comes out to more than what most people get, as I understand it.

by benmor78 on Oct 17, 2007 2:19 PM CDT up reply actions

I'd talk to a lawyer

In Wyoming, when you sever the mineral interest from the surface estate, the owner of the mineral interest has a right to use the surface land for exploration. That doesn't necessarily mean you'll have a gas well in your back yard, but there could be unintended consequences.

I hate Adam so much. <Sharky>

by WyoRanger on Oct 16, 2007 4:10 PM CDT reply actions

Ben

I believe he got something similar recently.

by Adam J. Morris on Oct 16, 2007 4:32 PM CDT reply actions

FYI...

the term of the lease usually isn't 5 years (or 3 or whatever), it's for however long they're pulling gas from the well. The 5 years is how long they have to start drilling before they have to give you another payment to extend the initial lease.

by benmor78 on Oct 16, 2007 5:02 PM CDT reply actions

My understanding is this is happening...

all over Tarrant county and the surrounding area. I know a few people who've made a real windfall. It's probably legit, but you should still check it out pretty closely. Let me reitterate an earlier comment, "you lucky bastard"!

by tklawless on Oct 17, 2007 9:10 AM CDT reply actions

"You Lucky Bastard"

Heh, I get a check every 3 months for about $100 bucks. I'm not saying that I throw it away or anything, but I wouldn't count on buying that new BMW with your new found windfall.

You Somewhat Lucky Bastard.

by Oracle Galvez on Oct 17, 2007 9:30 AM CDT reply actions

My parents got a deal

about 3 years ago where a company simply paid my parents about 100k to have the right to drill on their property for up to 3 years and then if they did, they'd do about a 75%/25% split on the profits, with the gas company getting the 75%. Of course they have not started drilling yet and that 3 year window is almost up. Or course I told my parents to call them up and ask them if they wanted to buy another 3 years for 100k.

Good luck to you!!

by jefe6801 on Oct 18, 2007 10:01 AM CDT reply actions