Doesn't anyone have any lease bonus offers info for Panola County?
I'm working in Shelby County, and know the offers are getting better there... but I haven't found anyone locally that's gotten a decent offer.
I have some relatives who decided they'd rather be in a "New" unit (actually it's a 50 year old unit, that has been restructured, to alleviate some of the large overriding interests that has stifled interest in new drilling for years) and they were offered $200/acre, but for tracts of only an acre. Company is doing them a favor, as the tracts are on the boundary of the unit, and not necessary for the company...
I've got a 244 acre tract, belonging to family, that we're trying to get leased... but I'd rather not get burned with ~300/acre.
Trouble is, no company is going to give you their best price...
So little available unleased acreage in Panola, compared to the virgin country down in Shelby...
Seems like most of the permitting and hot leasing area is north of where your interest is, a little to the west. The companies may not have spread that far south yet because they have to drill on what they have currently leased before their primary term is over and they have spread themselves pretty think with the rigs that are available. But I don't think I would entertain less than $500 at the low end. You might also want to limit the depth. If they want to drill deep, just lease them the Haynesville. If they want shallow, only lease through the Cotton Valley. If they want it all, your lease bonus should be more.
$500 an acre is good, particularly in an area where the geology is unclear and where mineral title is a headache due to generational inheritance, some tracts even into the fourth, fifth or sixth generation. Although the leasing bonus is a strong consideration, I would still put more emphasis on the royalty provisions, depth limitations and water usage.
The best way to get a good offer and a good lease is to talk to a local oil and gas attorney. They know what is going on and will protect your interest. I have had several leases written by an o&g attorney in Rusk County and it was money well spent.
We were just offered $250 per acer bonus for a two year lease with a 22.5% royalty from an independent landman that works for with a broker. The apprx. 300 acres is in Panola county in the Tippett survay. Is this a good offer? I would like at least $500 per acer and a 25% royalty. Has any on eles had any current offers?
I leased in the W. Tippett survey last fall and $250 per acre is not enough. I got slightly lower royalty rate than your offer but a lot more bonus money than you are being offfered. Higher royalty rate would make you more money in the long run if it ever gets drilled.
What were your terms, two year, three year? Did you get all the signing bonus upfront? Our land man only wants to pay for one year at signing and possibly pay the next year in 6 months, of course if he does not pay the lease is terminated. It seems they play such games. What stipulations do you have on the drilling depth? Our guy will say deep, 10, 000 feet , but I can not find it in writting in the lease.
Julia, Proceed with extreme caution. Do not sign a standard oil/gas lease without having it reviewed by an oil/gas attorney. Those leases are not in the mineral owner's best interest. Arm yourself with as much info as you can. This site provides very valuable information but always get an attorney to advise you before signing the dotted line on any lease. Good luck!
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