We were just asked to extend a lease that is expiring at the end of the year, for one additional year. Initially we were not offered a bonus, but when we declined they suggested we talk. Any advice on how to approach this negotiation? The only comp I could see near me was from 2012, a three year lease, $635/nma, 25% royalty. Our initial lease was not negotiated, but was 5 years, $600/nma, 20% royalty.
You’ll need to post some more details. Need to know location you are inquiring about. You also might have better luck posting your question under the section for your specific area. You can do that by clicking Counties at the top of the page then going to your state and county.
If the oil & natural gas prices continue to sneak up, you should have more offers coming once your current lease expires. Since your minerals are in Texas, an assumption on my part, why not start at 25% royalty and work your way backwards, if you want? Get the clauses you want & need in your new lease BEFORE you talk money with them. Just my 2cents worth.
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