what is a average price to lease land in south texas for drilling and
exploration of uranium. I ouw property in south texas close to carrizo
springs. I have been contacted by a mineral exploration company that
wants to lease part of my property for possible drilling for uranium.
they want a 5 year lease with another 5 year option. the property was
leased in the early 70's for the same purpose. A exploration well was
drilled but actual production wells were never drilled. They want to
lease 476.0 acres.

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Request for Question Clarification by pafalafa-ga on 09 Feb 2005 11:10 PST

dvldog-ga,

I can't find (and I'm not sure anyone would be able to find) average
cost information for these types of leases.

However, I have been able to unearth (forgive the pun) some
information on one specific lease:


"...property consists of mineral leases from private landowners on
about 2,354 gross and net acres [located in Texas]. The leases provide
for royalties based upon a percentage of uranium sales.... The leases
have expiration dates ranging [up]to 2007. With a few minor
exceptions, all the leases contain clauses that permit us to extend
the leases not held by production by payment of a per acre royalty..."

The actual percentages-based-on-sales and per-acre royalty payments
for extending the lease are spelled out in document I found.


Some other Texas properties are similarly described, as well as some
leased mining sites in New Mexico.



Would that sort of information meet your needs?


Let me know.


pafalafa-ga

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Clarification of Question by dvldog-ga on 09 Feb 2005 16:13 PST

Sorry, but I am specifically looking for how much per acre has been
paid in this area to lease drilling rights. Royalty payments would of
course be paid in addition if they found anything.

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Request for Question Clarification by pafalafa-ga on 09 Feb 2005 19:06 PST

OK.  I'll keep looking and let you know if anything turns up.

Mean time, here's the language I had found on the other Texas lease I
mentioned, which is held by URI -- note that the lease generates
income for the property owner even in the absence of uranium sales due
to the per-acre royalty payments:

"The Kingsville Dome property consists of mineral leases from private
landowners on about 2,354 gross and net acres located in central
Kleberg County, Texas. The leases provide for royalties based upon a
percentage of uranium sales of 6.25%. The leases have expiration dates
ranging from 2000 to 2007. With a few minor exceptions, all the leases
contain clauses that permit us to extend the leases not held by
production by payment of a per acre royalty ranging from $10 to $30.
We have paid such royalties on all material acreage."