I'm not sure which township your property is in, but if it is in Township 23N, Range 6W, it is fairly close to my property, which is in Sections 10, 11, and 14 of this township. I was offered and accepted $300/acre, 1/5 royalty, and 3/3/1 term.
Thoughts? Consistant with surrounding leases? What about $350/400/acre? 1/4 royalty? Vertical Pugh clause? Favored Nations clause? I don't want to do anything that would have a negative affect on any adjoining landowners. I want to help.
I see that your property is considerably west and south of mine. I haven't heard of bonuses higher than $300/acre, or of royalties higher than 1/5, in northern Claiborne Parish. My lease did not have a Favored Nations clause, but did exclude the Haynesville shale and formations below the Brown Dense.
The 1 in 3/3/1 is an additional 1-year lease option if the first option (for3 years) has been exercised.
If you don't mind, did you attempt to negotiate the bonus, terms and royalty and, if so, how was it received? Specifically, were the lease terms those offered out of the box or was there any give and take? Again, I just want to be consistant with adjoining landowners.
I didn't do much negotiating but I had checked around and had not found that anyone near me had gotten higher offers. I think they did add the Haynesville shale exclusion at our request, but from all accounts there *is* no Haynesville shale in northern Claiborne Parish. I don't think shallower depths are excluded, which might have been something we should have asked for.
Our property is very close to you and it sounds like we are dealing with the same lease proosal that you recieved from Pinebelt. We are close to finishing discussions but we do not want to be in a situation where we get flipped and left for years. rb
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More