$600/acre, 3/16th, 3 year
The landman refuses to negotiate a 1/4th royalty, or anything larger than 3/16th, for approximately 100 acres. This company has intentions to drill as soon as possible, but after the site is released by the OCC (which they feel confident in the well being released). Said they have leased over a 1,000 acres in the area and have not signed anything more than a 3/16th. He also tried to convince me that I will not get more than 3/16th in Major Co. Not true - we have signed two leases this year with a 1/4th royalty. Any suggestions? I prefer to negotiate a solid lease than to be forced pooled by OCC... and end up with the 3/16th.