# Mineral Rights Question



## redfisharmy (Aug 1, 2004)

I have some questions I need help with so I thought I would ask here. My father passed some mineral rights to me from our old homesite in Beaumont. Recently a land man approached and offered a small amount for a 6 month lease following by a 3 year lease with 1/5 royalty. I discussed with him and he explained the 6 mo. is to analyze the seismic data which is apparently already available and the 3 year is for drilling if the seismic data proves positive. He also explained the Tex. RR Commission divides the leases into 640 acre sections so I would have the mineral rights for a portion of the 640 acres. He is sending a contract for me to examine and sign, but I don't know enough about this at this point to make an informed decision. Is the 1/5 royalty standard or is it tyically negotiable? If I don't agree with their contract, and they parcel 640 acres around our land, what prevents them from taking oil and gas from underneath our property? I don't know if we are talking about a lot of money or a small amount, but I want to make the right decision for our family. Thanks for any input you might have.


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## Haute Pursuit (Jun 26, 2006)

1/5 is pretty standard as is the seismic lease. You can try to negotiate a better percentage but it is unlikely you will do much better. They are asking you to be a part of "the pool" around you. If you don't agree there is nothing that would prevent them from taking the oil from underneath you... they just would not be able to set foot or build anything on your property.


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## Barefoot Boy (Sep 27, 2005)

Try finding out what kind of offers/deals neighbors are getting.


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## Pasadena1944 (Mar 20, 2010)

"and they parcel 640 acres around our land, what prevents them from taking oil and gas from underneath our property?"

Because you own the oil and gas under your property... they'ed be stealing it...

You really need a lawyer on this..


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## Pasadena1944 (Mar 20, 2010)

Haute Pursuit said:


> 1/5 is pretty standard as is the seismic lease. You can try to negotiate a better percentage but it is unlikely you will do much better. They are asking you to be a part of "the pool" around you. If you don't agree there is nothing that would prevent them from taking the oil from underneath you... they just would not be able to set foot or build anything on your property.


Come on....that would be like Shell taking oil from under an Exxon lease in the gulf of Mexico... If what you say is true they wouldn't even bother to make him an offer...They'd just buy 10 acres and angle drill under every ones property.


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## Super Dave (May 26, 2004)

You didn't mention bonus money that is normally paid up front to lease mineral rights. It's an annual rental that is paid if a well is not put into production on your or your unitized acreage within the primary term of the lease. I suggest no lease of any kind without bonus money. Also watch out for damages that could acrue due to the seismic on your property. Be sure you are covered there.

640 acres is way too many acres for an oil well. Don't agree to that. If the prospect is gas, the 640 is more reasonable but possibly not for your case. You need someone with knowledge of the customary practices for your area. How many acres do you own? Is unitization customary in your area. What are the sizes of units nearby? How far away is the closest producing well? Oil or gas? If you don't have family or friends that are familiar with the energy industry a lawyer, as suggested above, is good advice. What may cost you a hundred bucks now could make you thousands in the future.

Another option is to give only the seismic lease now and then negotiate the drilling rights later. That could cause you to miss out on a small amount of lease bonus money now if they don't come back for the drilling rights lease later.

Good luck.


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## poco jim (Jun 28, 2010)

Get a lawyer, we are getting the same offers and it's to best to let the people that know the business help you!


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## Super Dave (May 26, 2004)

Haute Pursuit said:


> 1/5 is pretty standard as is the seismic lease. You can try to negotiate a better percentage but it is unlikely you will do much better. They are asking you to be a part of "the pool" around you. If you don't agree there is nothing that would prevent them from taking the oil from underneath you... they just would not be able to set foot or build anything on your property.


There's such a thing in Texas as unitization or forced pooling;however, your acreage, if included in a pool or unit, and if subject acreage is unleased, you would receive a "working interest" or 100% of that profit that your share of the "pool" produces less operating expenses of the operator of the well. A working interest results in liability exposure that a mineral interest does not have. You would definitely need a lawyer and probably an agent to watch over your share of any production, take the product in-kind, sell it, pay production taxes, etc etc. Not fun unless its a bunch of money involved.


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## BretE (Jan 24, 2008)

Try Robert Keith Wade in Beaumont. To be honest I haven't met the guy yet but he's handled my family's holdings. I'm new at this too....if you do talk to him, let me know what you think.....


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## Lat22 (Apr 7, 2005)

I'd ask for a quarter.


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## Too Tall (May 21, 2004)

poco jim said:


> Get a lawyer, we are getting the same offers and it's to best to let the people that know the business help you!


What he said.

Also find out what your rights are on the surface. Access roads, site pads, wells etc. Have everything you agree on put in writing. Just some examples of things I'm familar with. All roads will be maintained during and after completion of the work if you wish to keep them. Remediated back to pre work conditions if you don't. Speed limits are to be in place. Dust control on the roadway around the house if there is one. If they drill a water well determine the disposition of it after the work is completed. Ask for ownership when they are done or have them cap it if you don't want it.


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## 47741 (Jan 5, 2010)

640acres is a lease block, they don't deal in less....so what he is saying is that your land is a percentage of that 640 acres of leased land. They won't go "around" your land like that, they will still incorporate it. As it has been said, while you are a mineral owner- the ones after the minerals trump your land rights. In other words- you don't want to sell, too bad, you'll get a check for it anyway. You MAY not be able to avoid a top rig on your land as well- but that would be regardless of contract. Make sure its in there that if they do anything on your land that a) you get money for that (and for verticality!) and b) there is no clause that requires YOU to prove the mineral rights are yours to sell. That clause will screw you over big time if the rights are ever put in question. Make the lessee cover those costs. There is actually a specific name for it, which sadly I am missing at the moment.

Lawyers are great, but they will for sure hose you on a small lease like yours. Land man will try to hose you as well- seen it first hand. Its not necessarily they are trying to screw you, but their fees don't change for a smaller lease, so they could gobble up your income.

20% isn't too awful, I forget the numbers, but I Texas/gov't gets a large share (25% or something I think) then the rest divvied up amongst landowners, landman and oil/drilling co. Been a while since I have talked numbers..


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## RB II (Feb 26, 2009)

One of the things that I have negotiated in the past is the "transportation" costs. Basically, it their production costs and the royalty owner typically pays a portion of these costs. Not an easy negotiation, but if the lease area is hot enough, they will negotiate.


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## Jolly Roger (May 21, 2004)

redfisharmy said:


> I have some questions I need help with so I thought I would ask here. My father passed some mineral rights to me from our old homesite in Beaumont. Recently a land man approached and offered a small amount for a 6 month lease following by a 3 year lease with 1/5 royalty. I discussed with him and he explained the 6 mo. is to analyze the seismic data which is apparently already available and the 3 year is for drilling if the seismic data proves positive. He also explained the Tex. RR Commission divides the leases into 640 acre sections so I would have the mineral rights for a portion of the 640 acres. He is sending a contract for me to examine and sign, but I don't know enough about this at this point to make an informed decision. Is the 1/5 royalty standard or is it tyically negotiable? If I don't agree with their contract, and they parcel 640 acres around our land, what prevents them from taking oil and gas from underneath our property? I don't know if we are talking about a lot of money or a small amount, but I want to make the right decision for our family. Thanks for any input you might have.


Contact an oil and gas lawyer and let him look over the contracts.

There are many things that a landman will leave out that you need to make sure are in the contract. If you need reference for a oil and gas Lawyer let me know and I will pm you the contact info. I am not a lawyer, but have dealt with many oil and gas attorneys in east Texas.


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## Haute Pursuit (Jun 26, 2006)

Pasadena1944 said:


> Come on....that would be like Shell taking oil from under an Exxon lease in the gulf of Mexico... If what you say is true they wouldn't even bother to make him an offer...They'd just buy 10 acres and angle drill under every ones property.


It happens all the time. They are obligated to try and lease it but the oil can spread across many properties. If you decline to make a deal they will still drill on another property.


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## redexpress (Apr 5, 2010)

Ask the landman if he is employed by the oil company or is contract. If contract, he may not want to negotiate much. If this is a small tract, you may have better luck dealing with the company land dept, especially if it is a smaller company. About 10 years ago I got into a bad phone conversation with a contract landman. He was rude and sure didn't want to talk, much less negotiate with us. I finally got the name of the oil company out of him, called them for an appointment, and drove up to Tyler to "talk about it". Turned out to be nice folks. We are still leased with them. What happens to most folks is an oil company will lease and never drill. But you can still make a few bucks off the lease money. They seem to be more generous with the bonus money as opposed to the royalty percentage. Ask the neighbors if they are leased with the same company. There is a pretty big gas play going the last few years west of Beaumont. Wells drilled and process equipment from Keith Road west to Devers. If you feel like you're being railroaded and it doesn't feel right, I would take the lease to an attorney for a quick look.


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## Super Dave (May 26, 2004)

SaltyTX said:


> Make sure its in there that if they do anything on your land that a) you get money for that (and for verticality!) and b) there is no clause that requires YOU to prove the mineral rights are yours to sell. That clause will screw you over big time if the rights are ever put in question. Make the lessee cover those costs. There is actually a specific name for it, which sadly I am missing at the moment.
> 
> ..


I think what you are looking for is something like this:
"Notwithstanding anything to the contrary contained herein, this lease is granted without any warranty of title whatsoever and Lessee agrees that it will not require any repayments to it by Lessor of any money paid as b onus, rental, or royalty under this lease. Moreover, Lessee shall not have the right to recover from Lessor's share of future production any over-payment made to Lessor as bonus, rental or royalty which is due solely to failure of title."


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## Tortuga (May 21, 2004)

Be carefull about signing a 'working interest' contract.. That can end up costing you a WHOLE lot of money.. Your's should be just an RI (royalty interest)...

I've never heard of a 'seismic lease'...We've negotiated hundreds of sub=leases and never heard that term.. If they're paying for that right...I been skrewed a couple of hunnert times ...LOL

One-fifth is pretty standard... One-quarter if it is really 'hot'....Standard used to be one-sixth to property owner....

The 'bonus' you should get up front CAN be negotiated if they really want to..


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## Haute Pursuit (Jun 26, 2006)

Tortuga said:


> Be carefull about signing a 'working interest' contract.. That can end up costing you a WHOLE lot of money.. Your's should be just an RI (royalty interest)...
> 
> I've never heard of a 'seismic lease'...We've negotiated hundreds of sub=leases and never heard that term.. If they're paying for that right...I been skrewed a couple of hunnert times ...LOL
> 
> ...


They do the seismic leases to run the big trucks and cables over your property to make their decision on going thru with the royalty lease. Usually used on shallow wells with pump jacks.


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## BretE (Jan 24, 2008)

Haute Pursuit said:


> They do the seismic leases to run the big trucks and cables over your property to make their decision on going thru with the royalty lease. Usually used on shallow wells with pump jacks.


Where were you when I had a jillion questions?.....


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## Haute Pursuit (Jun 26, 2006)

Brete said:


> Where were you when I had a jillion questions?.....


Dude, I was in the ranch sales bidness for 15 years... you shoulda asked me! LOL


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## BretE (Jan 24, 2008)

Haute Pursuit said:


> Dude, I was in the ranch sales bidness for 15 years... you shoulda asked me! LOL


I'll keep that in mind....a ranch is on my bucket list!.....









sorry....back to the mineral rights thread....


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## fy0834 (Jan 18, 2011)

I always tell them (landman or leasing agent) to call me back when they are ready to drill... if, in a few months, they call you back and indicate they are ready to drill... then you have options!!! Depending on what u own!!!


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## Lady Faron (Jan 24, 2010)

Get a lawyer. I just went through this with my sisters. Get the best deal and no they can't do anything on or under your land or you can sue them. We just dealt with this and the laws have changed.


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## POC Troutman (Jul 13, 2009)

i probably know the landman that came to your door! haha most of the guys are working for Crew Land, contracted by O&G companies that produce in the beaumont area, which is largely 3 companies. pooling into the 640 is not uncommon, 20% royalty is low, should be a quarter, that's standard, don't settle for 1/5. shoot me a PM, i'll get you in contact with some folks if you need it. how many acres do you own royalty on? also, 640 spacing is only in regards to what can be held by production/drilling. If the spacing goes down, they have to drill more to hold the same amount of acreage. questions you need to ask is what formation are they targeting. then find out what current RRC orders are on that formation in regards to spacing and such... do some research on the RRC website, it'll tell you a lot. shoot me a PM if you need some help, i can put you in contact with some folks or make a call or two on your behalf.


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## ANYBDYHERE (Mar 16, 2007)

Pasadena1944 said:


> Come on....that would be like Shell taking oil from under an Exxon lease in the gulf of Mexico... If what you say is true they wouldn't even bother to make him an offer...They'd just buy 10 acres and angle drill under every ones property.


 My understanding is that if they drill horizontaly, and say they hit oil or gas on the adjacent property (that must be leased) the well site property owner will get a share but not as much as the land owner that they are pulling oil from...Is this correct?


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## POC Troutman (Jul 13, 2009)

ANYBDYHERE said:


> My understanding is that if they drill horizontaly, and say they hit oil or gas on the adjacent property (that must be leased) the well site property owner will get a share but not as much as the land owner that they are pulling oil from...Is this correct?


surface owners and mineral interest owners are two different things, and not always the same people. at the end of the day, royalties are paid to mineral interest owners only, regardless of who's land the well is drilled on. if the formation and all completions are on one lease, the mineral interest owners get paid. pooling solves problems of small tracts and who gets what. the unit gets x royalty from wells produced, you get y % based on the acreage you own minerals on... does that help or make sense? i'm not sure if that answers your question?


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## stew1tx (Oct 15, 2004)

Close. Everyone is close. 20% is pretty standard, up from the standard 1/8 that was customary in the 30's to heck even early to mid eighties. 

If they drill under you, your neighbor or whoever (in terms of mineral estate) they will have to have at least some portion of that acreage leased, otherwise it's mineral trespass an many compensatory issues are brought up which no company wants to face. Acreage size, locality to producing or past producing wellbores is an important factor as mentioned. If your right in the middle of a hot "play" and unleased you probably have some leverage, especially if you own a big tract of minerals such as was the case of the Piloncillas down in the Eagle Ford. So, naturally if you have small acreage you unfortunately don't have a lot of negotiating power. That being said, there is a huge influx of new Landman that really don't have much experience other than working in the Barnett Shale and some of those are as crooked as the day is long. Really frowns upon our industry. 

Unitization can be a good thing or a bad thing. In a case where you would not have a well drilled on your place, for whatever reason, you would still get your prorata share of your proportionate acreage. If you own a lot of land it's not such a good thing because you want to encourage E&P of your minerals. 

I will type you more later. Just remember an attorney is not always the beat move, will cost you more and certainly delay the process. They usually out in redundant stuff, most of us like our own language even though it says the same thing. Always make sure you have a good pooling provision and a Pugh clause. What They are talking about I a seismic permit with an option to lease. Yes you have room to negotiate but do a little research. 

More in a bit


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## POC Troutman (Jul 13, 2009)

stew1tx said:


> Close. Everyone is close. 20% is pretty standard, up from the standard 1/8 that was customary in the 30's to heck even early to mid eighties.
> 
> If they drill under you, your neighbor or whoever (in terms of mineral estate) they will have to have at least some portion of that acreage leased, otherwise it's mineral trespass an many compensatory issues are brought up which no company wants to face. Acreage size, locality to producing or past producing wellbores is an important factor as mentioned. If your right in the middle of a hot "play" and unleased you probably have some leverage, especially if you own a big tract of minerals such as was the case of the Piloncillas down in the Eagle Ford. So, naturally if you have small acreage you unfortunately don't have a lot of negotiating power. That being said, there is a huge influx of new Landman that really don't have much experience other than working in the Barnett Shale and some of those are as crooked as the day is long. Really frowns upon our industry.
> 
> ...


agree with everything you said except for 20% royalties. i'm 3rd generation oil and gas, have many family members in O&G at majors and private companies alike, 25% royalty is absolutely the standard, and a lot of land owners in EF Shale are pushing for 30% now! haha i'd like to meet the landman that signs off on that...he'd have a bullseye on his back lol.

Like he said though, do some research, find out what lease line spacing is and what formation they want to target. make sure you get a good bonus too, jefferson county is pretty active right now, i know some decent bonus' are going out (i have family that is the landman for one of the "major 3" companies i mentioned earlier leasing jefferson county as we speak)


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## fy0834 (Jan 18, 2011)

Lady Faron said:


> Get a lawyer. I just went through this with my sisters. Get the best deal and no they can't do anything on or under your land or you can sue them. We just dealt with this and the laws have changed.


If they have an undivided interest leased under your land from another third party mineral owner, they can come on your land and develop their interest without your interest being leased. Perfectly legal.


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## POC Troutman (Jul 13, 2009)

fy0834 said:


> If they have an undivided interest leased under your land from another third party mineral owner, they can come on your land and develop their interest without your interest being leased. Perfectly legal.


absolutely. keep this handy too. landowners have a lot less power than they think they do! this doesn't necessarily apply in this case, but good information none the less.

http://www.ridemetro.org/Opportunities/RealEstate/Pdfs/Landowners_billofrights.pdf


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## fy0834 (Jan 18, 2011)

Lady Faron said:


> We just dealt with this and the laws have changed.


What laws have changed???

Laws of the State of Texas are pro Oil Companies... as we have no state income tax, because we rely on severance tax from Oil and Gas.

Oil companies have lots of power, supported by the laws of the state.

Been There Done That!!!!


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## Haute Pursuit (Jun 26, 2006)

If any of you need a guide to give you an idea of your rights click on the link below to the TAMU Real Estate Center and download the pdf file named : "Minerals, Surface Rights and Royalty Payments". Good info and it is a free download.

http://recenter.tamu.edu/pubs/default.asp?TID=39&AID=&TYP=&STX


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## Steelersfan (May 21, 2004)

Those Barnett shale landman must have come to PA to work in the Marcellus shale play. 

Anyways, what is the going rate for "bonus" money per acre down in TX for gas? Up here, depending on the location in the state, gas companies are paying anywhere from $1500 to $5500 per acre bonus money for the lease and a little less than and up to 1/5 for royalties for the Marcellus.


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## Jolly Roger (May 21, 2004)

Steelersfan said:


> Those Barnett shale landman must have come to PA to work in the Marcellus shale play.
> .


Nah, they all came to Jasper,Tyler and Polk counties to take advantage of us dumb ******** or at least try.

Never trust a landman unless you are signing his check, then still be wary.


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## POC Troutman (Jul 13, 2009)

Steelersfan said:


> Those Barnett shale landman must have come to PA to work in the Marcellus shale play.
> 
> Anyways, what is the going rate for "bonus" money per acre down in TX for gas? Up here, depending on the location in the state, gas companies are paying anywhere from $1500 to $5500 per acre bonus money for the lease and a little less than and up to 1/5 for royalties for the Marcellus.


bonus depends on where you are at. rich gas window in EF shale is getting pretty ridiculous... 5,000/ acre and more. Shell just paid a $1,000,000,000 to the owners of a ranch in Dimmit county just to lease it! not bad huh...


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## Long Pole (Jun 5, 2008)

POC Troutman said:


> bonus depends on where you are at. rich gas window in EF shale is getting pretty ridiculous... 5,000/ acre and more. Shell just paid a $1,000,000,000 to the owners of a ranch in Dimmit county just to lease it! not bad huh...


1 billion?


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## POC Troutman (Jul 13, 2009)

Long Pole said:


> 1 billion?


that's correct.


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## Long Pole (Jun 5, 2008)

POC Troutman said:


> that's correct.


Maybe in the next life....:headknock


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## POC Troutman (Jul 13, 2009)

i know right.... and that's not even counting royalties from a single MMbtu or gal or oil... quarter royalty on that much acreage with current spacing....that's over 1,000 locations based on common spacing in the area...2.5 Bcf/well conservatively at $4 gas alone, not including any liquids... well... you do the math.... you'll need a graphing calculator to see the number though, it's BIG


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## stew1tx (Oct 15, 2004)

I am 5th generation in the business. My family has been involved since it started in tx. Anyhow I am still buying leases all over the place for as little as 3/16 and 1/5 all over the state. One thing we do is adjust bonus based on royalty %. By the way it wasn't a billion in bonus money. It was a 5 year package deal. I have the lease


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## POC Troutman (Jul 13, 2009)

Gotta be talking about the same deal...? P ranch in dimmit county? Heard it was a B...


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## shanker (Jan 15, 2006)

in Kleberg county when our land was leased for drilling (Natural Gas) the block was 320 acres

We had 3 blocks, but they only drilled one hole


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## redfisharmy (Aug 1, 2004)

Thanks to everyone that replied, I really appreciate the insite and guidance. I learned a lot more than I knew before about this subject. It certainly sounds like I need to do more research before I sign anything. Thanks again.


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## stew1tx (Oct 15, 2004)

Yeopp, it is the same place, only one "P" ranch, but it isn't solely Dimmit, it is Webb and Lasalle too.


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## POC Troutman (Jul 13, 2009)

stew1tx said:


> Yeopp, it is the same place, only one "P" ranch, but it isn't solely Dimmit, it is Webb and Lasalle too.


ya... we were talking about it today, i'm still under the impression the acreage bonus was a B. lots of potential there too, wild stuff!


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## POC Troutman (Jul 13, 2009)

108,000 acres, total cost $1B. maybe not all of that acreage bonus, siesmic and what have you...but that's what i've been told...


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## finz (Aug 18, 2010)

''P'' Ranch, ?? Is this the name of the ranch or an abreviation??


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## POC Troutman (Jul 13, 2009)

finz said:


> ''P'' Ranch, ?? Is this the name of the ranch or an abreviation??


that's the only thing i've ever heard it called, i know the names of the brothers, but not gonna broadcast that over the web...


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## finz (Aug 18, 2010)

UNDERSTOOD, THANKS..


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## POC Troutman (Jul 13, 2009)

the "P" ranch is actually a longer hispanic sounding name that starts with a "P"...


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## Spec-Rig.006 (Nov 2, 2007)

POC Troutman said:


> bonus depends on where you are at. rich gas window in EF shale is getting pretty ridiculous... 5,000/ acre and more. Shell just paid a $1,000,000,000 to the owners of a ranch in Dimmit county just to lease it! not bad huh...


No they didn't ... and that figure is closer to 8K - 10K/acre now.

What you all don't know about oil and gas could fill this entire forum. The ONLY good advice on here to speak of is:
Contact an lawyer ...
And communicate with your neighbors ...

All of you morons trying to tell this guy he can get more than fair market are probably the same morons ************ about paying $4 - 6/gallon at the pump. Seriously ... ?!?!? Boo-hoo gas is expensive ... but make sure you try to extort the people pulling it from the ground ... ?!?!?

Seriously there are some things to think about in this post, but I'd only listen to about 1% of them. Oil and gas does not end at your fence line ... and if you back out playing hard ball ... you're going to end up with $0 ... the 5th they've offered you is very good.


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## POC Troutman (Jul 13, 2009)

Spec-Rig.006 said:


> No they didn't ... and that figure is closer to 8K - 10K/acre now.
> 
> What you all don't know about oil and gas could fill this entire forum. The ONLY good advice on here to speak of is:
> Contact an lawyer ...
> ...


Spec... the total acreage i'm reffering to on the P ranch is roughly 108,000 acres.... so you easily arive at $1B when you factor in your range of 8,000 to 10,000 per acre. also, the acreage in question here is in jefferson county, and i have first hand knowledge via one of the largest producing companies in jefferson county that royalties are quarters...

i talked to the OP via PM and have offered to put him in contact with a landman friend of mine working jefferson county as we speak, he will help him out for sure, should he choose to contact him. next step would be an attorney.


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## Spec-Rig.006 (Nov 2, 2007)

Cool, maybe so, but that kind of purchase would be publicized, and it's not. By the way ... WHO do you think I work for ... ????? Where do you think I'm operating ... ?????

There are far too many acreage positions in Jefferson Co. for a 108,000 acre purchase to happen in an all encompassing 1 billion dollar deal without me hearing about it.

The acreage prices I mentioned were in retort to the Eagleford Shale comment.


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## POC Troutman (Jul 13, 2009)

either samson, cimarex or ballard. and the P ranch is eagle ford shale condensate window, there was a mixing of conversations going on.


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## Spec-Rig.006 (Nov 2, 2007)

We might be talking about two totally different counties.

If the "P Ranch" is in Jefferson Co., there's no way it's an Eagleford play. Conventional or unconventional. It'd be Wilcox, Frio or Yegua and would lie in the 18,000 - 28,000 foot range for TD (therefore the factor of drilling costs are going to rule you out on a small acreage royalty dispute). The Eagleford starts in Gonzales and Lavaca counties and extends south and west towards and to the river and to around Del Rio where exposed outcrops exist.

I'm not saying you specifically know jack about what your saying, I'm saying a billion dollars acreage position purchase is extremely unlikely and the economies of scale aren't at work in what your buddy may have told you. It'd be highly more likely that Exxon has a 2011 onshore lease hold budget of a billion in 2011.

For the sake of argument in the case of 108,000 acres ... that's 168 (and change) sq miles ... so in the case of the guy who started the thread, that would represent less than 1% of the acquisition of seismic. In Jefferson county you're looking at an acquisition cost of between 38K and 115K depending on the nature of the data acquired.

If company x shot 1000 sq mi (which is huge for proprietary) he'd represent such a small portion of the survey they'd just shoot around him.

Now in case A, this might mean they pay him a little extra to avoid an undershoot, but if you argue with 'em too high, that's not particularly likely either. I'm not saying you should just roll over and take it either ... for sure you need to get what's coming to you ... but an all encompassing blanket statement sue for more status lands you $0, everytime.

As was stated originally, 640 = one (1) sq mile, so unless the seismic shoot is less than 100 acres, his property will not effect the quality of the shoot.


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## POC Troutman (Jul 13, 2009)

the p ranch is in dimmitt county primarily, and shell did in fact pay a total of a billion


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## Spec-Rig.006 (Nov 2, 2007)

Ahhhhhhhhhhhhhh ... ! VERY interesting. Dimmitt rules man! Let's go fishing, sounds like I might be able to expense this trip!


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## POC Troutman (Jul 13, 2009)

let's go! who do you work for, hit me with a PM


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## Dilley Monster (Feb 8, 2009)

Why hide the Ranch Name????

It''s the Piloncillo Ranch, owned by Dan J Harrison (Harrison Int) and now William Harrison son of the Late Bruce Harrison. It's 106,000+/- it encompasses Dimmit, Webb and Lasalle counties. Shell paid $3500 per acre for the Lease!! It is/was some of the most fantastic deer country in Texas. Very Private place (at least it used to be) back in the day to gain access to the ranch was a privilege. I was there the other day and EVERY gate was open..haha of course there was a gate guard at each one but none the less they were all open. 

Some VERY Notable neighbors of the Piloncillo are the Las Racies ranch, George Strait Ranch, Cactus Jack, Rancho Encantado, Briscoe/Catarina ranch, Galvan and I'm sure I'm forgetting some others.


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## SmithEC (Jul 31, 2009)

Dilley Monster said:


> Briscoe/Catarina ranch


I'm not originally a Texan and have never taken the time to learn the history.

Was in conversation with a vacuum truck driver in Simmons City (Three Rivers) a few weeks ago when he started talking about the Briscoe place.

Him: Do you know know who Dolf Briscoe is?
Me: You mean the wrestler?

I think I was thinking of Jack Brisco - former NWA champ.

Felt stupid at the time, but have since gotten over it.

.


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## stew1tx (Oct 15, 2004)

Check your figures man, I also got a little preturbed at that guy arguing about a billion dollar position... Some of us would say the same about some others making posts. Anyhow, check on the total package of the "P" ranch acquisition. You will find out $3500 wouldn't get you close. Even if so, there are very few companies that could stomach a 400,000,000 single purchase with no available bolt on positions. The particular company that purchased the lease happen to liquidate other S. Texas assets right before and also bought in on another VERY NOTABLE ranch prior to the P-ranch. It happens to encoumpass more acreage too.



Dilley Monster said:


> Why hide the Ranch Name????
> 
> It''s the Piloncillo Ranch, owned by Dan J Harrison (Harrison Int) and now William Harrison son of the Late Bruce Harrison. It's 106,000+/- it encompasses Dimmit, Webb and Lasalle counties. Shell paid $3500 per acre for the Lease!! It is/was some of the most fantastic deer country in Texas. Very Private place (at least it used to be) back in the day to gain access to the ranch was a privilege. I was there the other day and EVERY gate was open..haha of course there was a gate guard at each one but none the less they were all open.
> 
> Some VERY Notable neighbors of the Piloncillo are the Las Racies ranch, George Strait Ranch, Cactus Jack, Rancho Encantado, Briscoe/Catarina ranch, Galvan and I'm sure I'm forgetting some others.


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## POC Troutman (Jul 13, 2009)

I thought this thread was dead! The acreage is accurate, I have the request for bid on my desk, an have first hand knowledge the amount paid for the lease, and it is in fact as I stated in previous post. It's hard to imagine that amount of money, but I'd you have run economics in the acreage that the land has the potential of producing in regards to oil, gas, and processable liquids, that money is a drop in the bucket.


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## POC Troutman (Jul 13, 2009)

I put them on a billion. Not sure if you are agreeing or disagreeing, but I have the proposal from the company that paid for the acreage in my office and have dealt with the Harrison's and their attorneys and have first hand knowledge of what was paid. Also, if you run economics on the acreage itself, that B they paid is a small amount compared to the potential of the acreage. Sent from iPhone, apologize for mistype


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## redexpress (Apr 5, 2010)

I heard 1.8 billion actually.


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