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The Gas Wells in North Texas Drilling in the Barnett Shale

By
Real Estate Broker/Owner with My Texas Home Real Estate

Most people in North Texas have heard about the Barnett Shale. For those that are not familiar with the Barnett Shale it is one of the largest gas fields in the United States. The Barnett shale is a natural gas source bed rock that stretches over 16 to 21 Texas counties. The Barnett Shale is still being discovered. Drilling Rigs can be seen in most of the Counties in North Texas. I saw one the other day just less than two miles from the Tarrant County Court House. The gas has always been below us but the technology to produce from this formation did not evolve until 1980. Now North Texas is the midst of a Gas Boom! Some experts say that production in this gas field will be active for another 100 years or more. So if you are visiting the area and see the drilling rigs about town you will know what they are drilling for.

The Texas Railroad Commission which has regulatory oversight of the Texas oil and gas industry has reported as of October 2006 there are a total of 5,205 gas well on the Railroad Commission records work the Barnett Shale. With the present production in the area and larger companies such as Shell coming into the play one can only imagine the impact this industry will have on North Texas. Along with the gas, money is also flowing. Many new millionaires are being made and along with money comes new jobs as well as housing needs. As Eddie Chiles use to say "If you don't have a oil well - get one..." , In my real estate practice mineral rights were never mentioned when selling or buying property inside the city limits, now mineral rights are some thing to consider. If you own property you may want to find out if you have the mineral rights. If you are selling property try and retain some of the mineral rights if you own them. It could be like a CD in the bank. The Barnett Shale Play is here and I think it is going to be here for a long time. Enjoy it while it is here. If you are lucky enough to own mineral rights make sure you are getting a good deal with you sign the lease. If you are in the drilling business - Best of Luck and make all your wells be productive!

 

Posted by

Rick Irving
Broker
My Texas Home Real Estate
Fort Worth, Tx
Email: cowtown@usa.net

Anonymous
steve
hey i got a letter in the mail today for an offer on my mineral right, there offering 300 bucks ans 20% royalty?   is this any good sounds like some BS to me? 
Apr 18, 2007 03:50 PM
#1
Anonymous
LunchBox

Hey Steve, I'm in a similar boat.  I have been approached about my mineral rights on my multi-acre facility.  I was offered $1000/acre, at 20%, for a 3 year term.  This is LOW BALL.  From what I've gathered, land owners should agree to a term of 12-15 months, $1000-$2500/acre, and up to 25%.  If they rope you in for more than 15 months, you lose money when it's time to renew.  Assuming you own less than an acre plot, why settle for $300 for a 3 year term, when you can possibly get $500 for a year, and renegotiate at the end of that term...you could possibly come out with a couple thousand over the same three year term, that you would have originally agreed to receive $300 for.

 I hope this helps!

Jun 12, 2007 07:11 AM
#2
Anonymous
Rick

 

 Just got offered $5000 per acre for 3 year lease , and 25% , and no surface use. Kicker is they also want option for additional 2 years also for $5000. Possibly tie the proerty up for 5 years for $10,000,  but I gotta think they are going to drill before that...what do you think?????

Oct 15, 2007 02:05 PM
#3
Anonymous
Joe

I've got a small lot here in Grand Prairie.  I got one offer for $400 for five years, with 20%.  How do I find a better offer?  Or do I have to wait

 Thanks

Oct 17, 2007 07:37 AM
#4
Rick Irving
My Texas Home Real Estate - Fort Worth, TX
Rick Irving Knows Real Estate

Do some research and find out what companies are drilling in the area. I know in Fort Worth, several companies may be trying to lease in one area. Talk to neighbors and see if they have been approached by any other companies. In some neighborhoods of Fort Worth with strong neighborhood associations they are paying $10,000 an acre.

Rick

Oct 17, 2007 11:41 PM
Anonymous
Ed
I've got an offer for $1,000 per lot and 22% for 3 years with an extension for 2 years for $200.  What do you think?  I don't see any mention of mineral rights in my mortgage paperwork in 2004.  Do I contact the mortgage company to find this information?  This is in Arlington, Texas.
Dec 15, 2007 03:12 PM
#6
Rick Irving
My Texas Home Real Estate - Fort Worth, TX
Rick Irving Knows Real Estate

If you purchased in 2004 you could well have the mineral rights. If the seller had mineral rights and does not reserve them in the contract they will convey to the buyer. The landmen for the drilling companies do research on the mineral owners. The mortgage company would not have the information. You might ask the company wanting to lease your mineral rights if they did a search. If they did then they found you as the owner. Did they say how much an acre they are offering? The highest price I have seen is in Arlington and a few weeks ago one neighborhood signed for about $15,800 an acre. If you have a neighborhood association you might check and see if they are working on getting more money. Good LucK! Let me know how it turns out.

Rick Irving

Dec 18, 2007 12:48 PM
Anonymous
Sherry

I have land in Tarrant/Johnson Counties (on the border) that I signed a 3 year lease on over 3 years ago and have heard nothing from them since. 

1.  How can I tell if they have drilled and produced during that time?  I checked out the Texas Railroad Commission site, but can't make heads nor tails out of it.

2.  How do I find out which company would be interested in a new lease at this time?

 

Jan 30, 2008 01:56 AM
#8