We were offered $150 bonus payment per acre on the E. Lederman Survey, A-367 with 6% royalty. Do y’all think I should ask for for than the 1/6%?
In Texas, we only lease at 25% royalty
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Great advice. I’ll second that. 25%
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JulieJ, couple of suggestions.
Somehow your post got entered under the Reeves County section instead of Wood County. You might try posting again under Wood County and see if folks that are active in that area can give you some advice.
The Railroad Commission map for Wood County doesn’t show any recent drilling permits filed near your survey but TexasFile.com shows where you can search for recent leasing, shows a company called KP Leasing LLC has taken several recent leases taken in your Lederman Survey, A-367. If KP Leasing isn’t who you got your offer from you might try to contact them and see if they are interested making an offer on your tract. TexasFile shows the most recent leases in your survey were signed last month by Charles and Patricia Moore covering a 478 acre tract and by Samuel Sudderth on a 474 acre tract. If you are willing to do a little research you could try looking those folks up in the Wood County tax records and give them a call to see if they will share any information on the lease terms they got. Talking to your neighbors is always a good idea before you accept a lease offer.
Also, you mentioned being offered 6% royalty and I think were asking if you should ask for more than the 1/6%. Probably typo’s but in case it’s not clear to you, a 1/6th royalty is equal to 16.67%. The next step higher in royalty would typically be a 3/16ths which is equal to 18.75%, but you can ask whatever you want and see how they respond.
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