50% rights owner in Weld County.. Other 50% already signed too low?

Colorado Mineral Rights Weld County, CO
1

Hi Everyone,

This is all new to me.. I currently received a Lease for a portion of a property I own 50% of the mineral rights to in Weld County Section 31, Range 66, Township 1 from a Landman. I own rights to several parcels around that area, but they are just wanting to lease a 18 acre parcel.

The offer is for 18.75% royalties and $700 p/acre bonus. This seems a bit low to me for that area, but I am not sure.. Supposedly (Landman says) the other 50% owner (also the surface owners) have already signed under the same terms.

What are your thoughts? Should I try to negotiate my side still? Am I stuck? Who should I contact for help, Landman or Attorney?

Thanks in Advance, any advice is appreciated..

2

It doesn’t hurt to ask for additional bonus but it’s also good to stay consistent with others that way everyone gets leased and development can move ahead quicker. The royalty stated below is super into opinion.

3

Thanks Jason..

4

Who is the company that is offering the lease? $700/acre is really good as most offers I get within 5-6 miles from you are $200/acre at 19%. How many years is the lease? I am holding out for higher offers because there is a producing well across the fence from us 300 ft away.

5

Who is the company that is offering the lease @$700/acre? I would like to talk with them. You can always try to negotiate your side but since the others have already signed on you most likely won’t fair any better. What is the length of the offer? If you can get a three yr with an extension of two more that is great in my opinion because that is $1400/acre over a five yr period.

6

I'll PM you..

Larry Thomas said:

Who is the company that is offering the lease @$700/acre? I would like to talk with them. You can always try to negotiate your side but since the others have already signed on you most likely won't fair any better. What is the length of the offer? If you can get a three yr with an extension of two more that is great in my opinion because that is $1400/acre over a five yr period.
7

RnysGuy,

Can we talk privately? I'm familiar with this area.

Please private message me or accept my friend request.