We have had amazing turn of events here with the leasing going on for the Barnett Shale.
Most of the past leasing in subdivisions has been paying the homeowners about $1500 per acre. And with about 5 lots per acre they have been getting about $300 per lot for an upfront bonus. On top of that, most of the owners have been getting about 18.75% to 20% royalty interest.
Well, now some of the HOA have gotten smart and are banding together to negotiate the lease for the entire subdivision. I am pretty amazed that they were able to get everyone together. I have been in several HOA's in the past and most of our meetings had a lot of loud language. Seems everyone had their own opinions about block parties, halloween events, etc.
Well, it appears that when money is involved the people are a little more agreeable. When there is one entity to negotiate the lease it is amazing what can happen. Instead of getting $1500 per acre, or $300 per house lot, some have been getting $15000 per acre, of $3000 per lot. Now I am not a math major but I do know that zeros at the end of dollar amounts, before the decimal point, are a VERY GOOD THING. They also got 27.5% in royalty interest.
This may not sound like much to some of you but a free $3000 that drops into my lap is a very welcome event. If you were lucky enough to have about 2 acres for your homestead, and they drilled a good well, you might be looking at 6 figures in future income. Not bad for something that you probably didn't know you even owned.
If any of you out there are facing mineral right issues give me a shout. I don't know it all but I am willing to share the knowledge.
Talk to you next time.
Comments(0)