Tyler County Old Lease

I inherited 96 acres of mineral rights in Tyler County with a lease signed in the 70's.  A landman contacted me in March, 2013 about signing a new lease.  I contacted an attorney who is handling it for me.  How long should this be taking?  I receive an extremely low royalty from the company.  Any advice?

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Permalink Reply by Nancy Mosley on October 30, 2013 at 10:10pm

Do you mean that there is current production from the lease, and you get paid for it, but it isn't much, and the same company wants you to sign a new lease, or some amendment to the lease? or is it a different company that wants you to sign a lease?

Permalink Reply by Kim Wilcox on October 30, 2013 at 10:17pm

I receive a small royalty from the same company that the original lease was signed with.  They contacted me about signing a new lease in March.  

I have 3 wells on the property and receive a small royalty on one other well from a different company.  I don't know anything about the third well.  

Permalink Reply by Nancy Mosley on October 30, 2013 at 10:31pm

What are the wanting from you in the new lease? Could it be an amendment to the earlier lease to increase the unit size or to allow pooling? 

And it sounds like the attorney is the slow one, or is it the company?

Are they offering you something in return for signing?

Do you have a copy of the original lease?

I know, a lot of questions for you!

Permalink Reply by Kim Wilcox on October 30, 2013 at 10:39pm

From my understanding, they want to pool the acres so they needed a new lease.  They offered me $400 an acre.  At the time I was thrilled, I didn't know anything about was going on in WV.  I think since I live out of state they thought I wouldn't do any research, that's why I hired an attorney.  I have a copy of the original lease from 1902 and the latest from 1974.  I just thought this would be settled by now. 

Permalink Reply by Nancy Mosley on October 30, 2013 at 11:01pm

Is it really a new lease or an amendment? I am not sure a new lease is needed, if the old lease has producing wells. However, you should get paid for increasing the unit size.

It does seem like a long time. Is your attorney reviewing the paperwork? Or is it the company you are waiting on? 

Permalink Reply by James Foster on October 30, 2013 at 11:02pm

The land there is worth more than $400 I think. If the lease agreement is being opened you should be able to negotiate a bonus and the royalty. These are not 1902 or 1974 leases or wells. Does WVa have a Tyler County group on here? Check it out and ask those people what recent leases went for in your area.

Permalink Reply by Nancy Mosley on October 30, 2013 at 11:14pm
Permalink Reply by Kim Wilcox on October 31, 2013 at 12:21am

I emailed my attorney in August and inquired about the status.  He emailed the company.  Company said they were reviewing.  I emailed my attorney again last week, never got a response from him.  I'm a little disappointed in my attorney, I thought when I talked to him in March he was going to be good, but now I have my doubts.  

I believe my lease is an amendment.  I have seen other Tyler County lease offers and they are A LOT more than my offer.  

I really don't think the company really wants to deal with me, they pay me almost nothing now, why would they want to change that?

Permalink Reply by Nancy Mosley on October 31, 2013 at 9:58am
If you need a recommendation for another attornry, I recommend Kyle Nuttall who is a member of this group including the Tyler County group that I put a link to above. You are right that this is a long time. Also right about Tyler being an important area for drilling.

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