Hi.
Just received my second lease offer this year for Carter County 23-3S-1W. What are the going rates? The two offers have different royalties and payments.
I turned down the first offer as the contract terms were not good. Second offer is interesting, including a 5 year offer at what I think is a decent rate. They also offered a 3 year with 2 year option.
Thanks, Bryan
Personally, I would not go with a five year term or a 3+2. Too much can change in five years. I encourage you to read through the Carter County topic area to see what is going on there. I moved your question over to the county.
Most of us would want the higher royalty as the long term potential for royalties far outweighs the bonus amount.
It is also wise to have a good oil and gas attorney review any draft lease as they are usually in the operator’s favor and not the mineral owners’. They need significant edits.
Thanks, Martha. I always appreciate your insight and great advice.
I was just curious to know who the lease offers are from if you do not mind sharing that information – I know that Pointer Minerals has been interested in that area for a while
Offers were from two independent landmen/ companies. One appears to be leasing for Charter Oak. The other more speculation.