Wolfcamp, Bone Spring, Spraberry, Dean · Texas · New Mexico
The most prolific oil-producing basin in the United States, spanning West Texas and southeastern New Mexico.
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Received a lease offer from a Pioneer landman last week. They're offering $3,500/NMA with a 22% royalty, 3-year primary term, and Exhibit A is 4 pages of post-production cost deductions. I own 48 NMA in Section 14, T-3-S, R-31-E. Anyone negotiated with Pioneer recently?
That bonus offer is within the current market range for Midland County, though recent comparable deals have reached $4,200–$5,500/NMA depending on the formation depth and unit configuration. More importantly — that 4-page Exhibit A of post-production deductions is a serious red flag under Texas's At the Well framework. Have you looked at whether that Exhibit explicitly waives your right to dispute gathering and compression costs? What year was your mineral deed originally executed?
My father passed away 3 weeks ago. He owned minerals in Midland and Martin County through a trust. The operator sent me a letter saying payments are suspended pending title verification. I found the trust documents but not sure what to do next. The payments were about $4,200/month.
Been reviewing my check stubs and Apache is deducting $0.58/Mcf for 'gathering and compression' plus another $0.22/Mcf for 'processing'. My lease says royalties are paid on 'gas sold at the prevailing market price' — does that language protect me or not in Texas?