I am brand new to this process. I have inherited (it’s been in the family for 120 years) and have now been contacted very recently about the 80 acres of mineral rights in Borden County, Section 132, Block 25, H&TC RR Co Survey that I own solely. Can you tell me what the going acre rate is for a lease bonus and what is an acceptable royalty in this area of Borden county? Thank you for any information you can provide. I have an offer but I’m not sure what a “good” offer looks like.
Welcome to the forum.
Lease bonus amounts are not public, so unless you have a friend nearby, you may not find out. The last leases in that section were in 2014. Before that, they were in 2004 and 1/8th. Most folks in Texas would want a 1/4th or 25% lease. Very good idea to get an attorney to review any draft lease because they are not generally in the mineral owner’s favor and need substantial edits to protect you and your family.
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Heed the advice from M_Barnes. You want a 25% royalty. What is more important, however, is the lease. I cannot stress enough the importance of having an experienced Oil & Gas Attorney handle the lease for you.
Thank you for the information. I have been offered less than 25% for royalties and the lease bonus (if that is the right term) I’m sure is low also. The land was leased many years ago from my mother when she was still with us and nothing ever came of it other than the initial bonus, so my expectations are not very high this time around either. I’m afraid an attorney will eat up the bonus. Thank you for the 25% info.
Even if you got a small bonus ($100/acre) the attorney fee would not come close to eating up the bonus. Also, without a good “cost free” provision and other safeguards, you will lose far more if oil is produced. The initial offer is always very low. They hope you will just accept the offer and not try and negotiate. Get some professional advice.
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We have producing interests in Borden but not the same section. Last Lease Bonus ( on 160 acre unit) in 2023 was $400/acre , 3 yr lease with 25% royalty on production. Hope that helps. I firmly advise you hire an O/G attorney to review lease language. There are many pitfalls downwind if you do not. Beware of solar companies wanting to deal with your interests. Do your research.
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