Recently received a 3 year lease offer in Blaine County for 11-18N-13W for $600nma @ 1/8, $500 @ 3/16 and $400 @ 1/5. We leased 3 years ago for $2000nma @3/16.
Curious if anyone can give input if rates have fallen that far or if this is fair? I have not received any other offers and the other couple landmen I used to interact with are no longer in business. Any advice would be appreciated.
Bonus rates are much lower this year in general. They are based upon operator competition, not really on the price of oil and gas. Most of us pick the higher royalty as the bonus is rather insignificant compared to years of royalties if the well(s) is successful.
Crawley Petroleum, Derby Exploration and Continental Land Resources have the most recent leases filed in the area.
Good time to get an attorney to look at the draft lease and make suggestions for improvements. Most of them are not in the mineral owner’s favor and require some negotiations. You can also wait for pooling which has some advantages.
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