I’ve been approached by a gas company interested in leasing my Tarrant County land. How do I know if the lease terms being offered are comparable to what other property owners in my county are receiving?

Barnett ShaleThe U.S. Lease Price Report, housed in the Central Library’s Nancy and Jake L. Hamon Oil and Gas Resource Center, compiles information from federal oil and gas lease sales, state oil and gas lease sales, and private transactions to provide a county-by-county representation of the “going rate” for royalty and other negotiable lease items. 

The September/October 2012 edition of the report provides the following information for Tarrant County:

Royalty Range – Low %:  18.00
RoyaltyRange – High %: 20.00

Bonus in $$ per Acre – Low:         500.00
Bonus in $$ per Acre – High:        1500.00
Bonus in $$ per Acre – Most Common: 1000.00

Rental Range$/Acre/Yr. – Low:        1.00
Rental Range$/Acre/Yr. – High:       2.00

Lease Term Years – Low:               3.00
Lease Term Years – High:              5.00     

Library customers owning property in neighboring counties within North Texas’s “Barnett Shale” natural gas formation, as well as individuals with property interests as far away as North Dakota (the Bakken Shale formation), have utilized U.S. Lease Price Report to assist in making informed decisions regarding their mineral interests. 

Additional resources that may be helpful in negotiating a favorable lease may be found in the Hamon Center’s circulating book collection, including the following items:

Land and Leasing

Look Before You Lease : Plain Talk About the Hard Facts of Oil and Gas Leasing for the Landowner  

Money in the Ground : Insider’s Guide to Oil and Gas Deals

The Hamon Oil and Gas Resource Center is located in the Business and Technology Division on the 5th Floor of the Central Library.

A limited amount of free information potentially helpful to lessors may also be found online.  Commercial publisher Shale Digest has posted on their Website several presentations from the 2009 Barnett Shale Expo in Fort Worth and from the 2009 Fort Worth Business Press Shale Energy Breakfast Symposium, including the following presentations of possible interest:  

Royalties – Understanding Your Lease

After the Lease: Now What?:  Maximizing Your Oil and Gas Lease 

Also available online, TexasA&MUniversity’s Real Estate Center publishes Hints on Negotiating an Oil and Gas Lease, a concise technical report written to acquaint non-experts with the more common provisions of an oil and gas lease and explain their legal significance.  This report is available for free download from the Real Estate Center online store.

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