The high price of oil has spawned a lot of legal work since the first of the year, especially in the area of title examinations. Operators actually have enough money these days to budget for legal expenses that had been scrimped on after the last price crash. I’ve been doing a lot of “stand up” title examinations, meaning that I have to go to the various courthouses and search through the records myself. In the “old days”, landowners had “abstracts” that we borrowed and updated, and I examined the abstracts in order to render title opinions. It seems nobody has abstracts any more. The thumbnails below should link to larger images at Flickr. You may need to select a larger size when you get there. Even though I’ve been in oil and gas all these years, I still find it amazing that some of the currently producing leases are documents that are nearly a century old.
Hi John–I have several clients who are being contacted by mineral rights companies in Pecos, Texas. Needless to say, I understand your woes.
The mineral companies are offering far too little per acre these days. What do you think is the best price per acre in that region?
Best,
Clare
Clare – Not sure what “woes” you picked up from my somewhat brief epistle. Yes, title exams were easier with abstracts, but getting out of the office isn’t so bad, and all the time is billable, including the time it takes to get to whatever courthouse. It’s easier to miss something doing a “stand up”, but the main “woe” is felt in my back which, being 30 years older than when I started, doesn’t tolerate the standing up too well these days.
As for bonus payments around Pecos, Texas, I have no clue. Up here in Kansas, I still see anything from $10 to over $100 an acre. Depends whether it’s a paid-up multi-year primary term or delay rentals, length of primary term, amount of royalty and, of course, whether the land is surrounded by production or surrounded by dry holes.