I’m aware of several sections of land that have recently come under new leases with Bison and Hiline. My understanding is that in many cases, they outbid Conoco. I heard it through the grapevine that someone got $2000/acre. Does anyone have more concrete info they can share? Multiple companies bidding and $2000 bonus payments sounds reminiscent of the activity 5 or 6 years ago–maybe better.
Scratch that. Hiline is just an agent for Bison. Highlands is the other player. Renegade is also in the mix, but tends to have lower offers.
There are new 2016 leases in the area that have paid more than $2,000/NMA. And I have a written offer for more than what my neighbors were paid in 2016.
Highlands Natural resources has Farm In agreements with Renegade Oil and Gas. Bison is making direct offers and also using some Land company’s to make lease offers as well. There is also some Elbert County offers on the county line border. I have personal knowledge that the offers are coming in more then Conoco between $1500 and $2500. Bison Drilled one well and Fractured it a few months ago close to Manila Rd and 1-70 and word has it, its commercial. The only thing I will say is Conoco/Burlington (one in same) has drilled many wells since they leased the Lowry Bombing Range. They have some great wells. They are also moving a rig back in sometime this quarter. There is definitly something to be said about there success in Adams/Arapahoe. Perhaps not as much per acre on the lease bonus but IMO wells will get drilled sooner and better then others.
I know first hand that leases offer can be at least $2250 an acre. I helped a neighborhood lease for that end of 2016 first of 2017. Depends on location of your minerals in Arapahoe Cty.
Michelle Smith
Former NARO CO President, mineral owner myself! VP of Land for The Quiat Companies
I see this above post is a year old (almost). However, move forward to today - Nov. 6, 2017. But I have a similar question:
My mother inherited 60 acres in Arapahoe County, Colorado. She was contacted by a landman (out of the blue) to lease her mineral rights to Bison. They are offering her $1,000 per acre bonus with 18.75% royalty. As you can see, we are clueless about all this so I am trying to gain information for her. The lease is for 3 years. Can anyone tell us what we can expect with all this? If we sign - are the royalty fees for certain? Should we hire an attorney or can we trust this landman (is there a place where i can go to check him out?). My first thought is to take his offer and be happy for my mom. But then on the other hand I want to do the best I can for her.
In summary - is this offer fair (from your experience) - or should I ask for more bonus/royalty based on the market (and if so, what is marekt value?).
Thanks for helping us out. (PS - the landman is putting pressure on us to sign and I feel I don't have too much time to get up to speed on this.)
Michelle - does this make sense to you (as to telling you the location of the MR)? Can you help me out with market value?
T4S, R63W, 6th P.M.
Section 30: N2SE, E2SW
Net mineral acres: 62.67
Lucille,
Some of the time first offers are low and the Landman tries to pressure the mineral owner to think they have to sign right away. I would certainly ask for 20% royalty...as for the bonus money in your area I'm not sure......maybe someone else will chime in. JUST MY OPINION
Clint Liles
Depending on what Township - Range and Section is the only way to tell. I have seen lease offers from Con/Burl, Bison and Highland. Royalty offered is good (have seen 20% very recently but in the sweet spot of play) but the $1,000 per acre tells me your east of Manila possibly? But I think you could get $1,500 If you DM me the legal address I can tell you what you should get.
john - two things - what dos NMA mean? and second...did you get your $2,000 per acre bonus? and what were you royalties? (if you don't mind sharing.)
My mother inherited 60 acres in Arapahoe County, Colorado. She was contacted by a landman (out of the blue) to lease her mineral rights to Bison. They are offering her $1,000 per acre bonus with 18.75% royalty. As you can see, we are clueless about all this so I am trying to gain information for her. The lease is for 3 years. Can you tell us what we can expect with all this? If we sign - are the royalty fees for certain? Should we hire an attorney or can we trust this landman (is there a place where i can go to check him out?). My first thought is to take his offer and be happy for my mom. But then on the other hand I want to do the best I can for her.
In summary - is this offer fair (from your experience) - or should I ask for more bonus/royalty based on the market (and if so, what is marekt value?).
Thanks for helping us out. (PS - the landman is putting pressure on us to sign and I feel I don't have too much time to get up to speed on this.)
Hi, I helped a group of mineral owners lease a year ago for for over $2000 an acre and 20% royalty. It does depend on your legal description. Lots of competition in the area for leases and minerals! Let me know if you have more questions or need some help. [email protected]
We are on the County borders of Arapahoe , Douglas and Elbert and have received a formal lease offer for 2000 per acre, from a Land and Mineral Company , I am curious as to which companies are making offers, I am wondering if the landman is acting as an agent for Bison , Extraction or another entity