I was wondering if anyone would be familiar with oil and gas leasing in Caddo County? I received an offer on Section 11, 11N, 13W. $1000/acre was the offer. Anyone know if that is the going rate?
In my experience, first offers are usually low to final offers. I assume that was a 3/16ths offer. I usually ask for what they are offering for 1/5th and 1/4 as the higher royalty usually pays off in the long run. The Bonus is lower, but if multiple wells are drilled, I would rather have a higher royalty.
Failure of a company to pay a lease bonus is a theme that has been raised in this forum far to often. Below are a few discussions on the topic. It is always best to exchange a lease for a check at the time of the transaction. This may not always be possible because of distance. In such cases it is probably better to have an escrow company or attorney to hold the lease until the consideration is paid.
Sometimes companies file leases without payment of bonuses.
There have been cases were companies take leases but never file them. They return the leases later stating that they were never funded by the company. In the meantime, the mineral owner cannot sign with another company.
It is much easier to prevent the issue than to remedy it after the fact.