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<blockquote data-quote="lavacarancher" data-source="post: 773195" data-attributes="member: 9198"><p>Yes, a little.</p><p></p><p>There are four hot gas areas in the USA today. The Barnett Shale (Backhoe country), the Haynesville Shale (Northeast Texas/Southwest Arkansas), the Eagle Ford Shale(Southeast Texas where I am) and the play in Pennsylvania (forgot what it's called). Until a few months ago the Barnett was the biggest discovery in recent history then Haynesville came along about the same time as Pennsylvania - well, not really. They knew about the Penn. play for quite some time. They just didn't know how to recover it very well. </p><p></p><p>Then things kinda changed when Eagle Ford was discovered or again, how to produce. </p><p></p><p>There have been stories of some folks getting as much as $10K per net mineral acre for their lease in the Barnett Shale area but those were far in between. In years past I have held out for $150 to $300/acre and usually got it. I always specify 20% royalty but have asked for 25% before and been turned down. I don't think you will find many companies that will go 25% because if its a really big field (lots of gas) the difference in 20% and 25% can really be significant to the operator. </p><p></p><p>I recently attended a seminar on producing the Eagle Ford and one of the major operators in the play stated that if they had to pay $2500/net mineral acre over the entire play it would only effect their bottom line $0.03. The difference between 20% and 25% could mean the difference in profit or loss.</p><p></p><p>So I guess what I'm going for is a pretty hefty lease payment and 20% royalty. That's just me. Do what you think you can get away with but don't be surprised if it blows up in your face if you try to screw them.</p><p></p><p>BHB and others are right. See your oil and gas attorney to modify the contract you will get. I'm not sure what pooling in this context means. Pooling in the oil and gas business means that depending on the depth of the well all land owners above the zone of interest are put into a "pool". Doesn't matter where the well is spudded, everyone in the pool will get royalty money. Oh, and the royalty is divided among those in the pool. For example if the royalty is 20% and there are five landowners in the pool and all have an equal amount of surface acreage each individual will get 4% (20% divided by 5 land owners=4%). Make sure that if you are placed in a pool they take ALL your land in the pool, especially if you don't have a lot of acreage. This is something you have control over in the contract.</p></blockquote><p></p>
[QUOTE="lavacarancher, post: 773195, member: 9198"] Yes, a little. There are four hot gas areas in the USA today. The Barnett Shale (Backhoe country), the Haynesville Shale (Northeast Texas/Southwest Arkansas), the Eagle Ford Shale(Southeast Texas where I am) and the play in Pennsylvania (forgot what it's called). Until a few months ago the Barnett was the biggest discovery in recent history then Haynesville came along about the same time as Pennsylvania - well, not really. They knew about the Penn. play for quite some time. They just didn't know how to recover it very well. Then things kinda changed when Eagle Ford was discovered or again, how to produce. There have been stories of some folks getting as much as $10K per net mineral acre for their lease in the Barnett Shale area but those were far in between. In years past I have held out for $150 to $300/acre and usually got it. I always specify 20% royalty but have asked for 25% before and been turned down. I don't think you will find many companies that will go 25% because if its a really big field (lots of gas) the difference in 20% and 25% can really be significant to the operator. I recently attended a seminar on producing the Eagle Ford and one of the major operators in the play stated that if they had to pay $2500/net mineral acre over the entire play it would only effect their bottom line $0.03. The difference between 20% and 25% could mean the difference in profit or loss. So I guess what I'm going for is a pretty hefty lease payment and 20% royalty. That's just me. Do what you think you can get away with but don't be surprised if it blows up in your face if you try to screw them. BHB and others are right. See your oil and gas attorney to modify the contract you will get. I'm not sure what pooling in this context means. Pooling in the oil and gas business means that depending on the depth of the well all land owners above the zone of interest are put into a "pool". Doesn't matter where the well is spudded, everyone in the pool will get royalty money. Oh, and the royalty is divided among those in the pool. For example if the royalty is 20% and there are five landowners in the pool and all have an equal amount of surface acreage each individual will get 4% (20% divided by 5 land owners=4%). Make sure that if you are placed in a pool they take ALL your land in the pool, especially if you don't have a lot of acreage. This is something you have control over in the contract. [/QUOTE]
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