Received an offer to lease in Dewey County: 10-19N20W.
Interested in knowing what is a reasonable offer.
Thanks!
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I am interested in this as well.
Welcome to the forum and back to the forum.
Lease rates are usually offered as a pair of bonus/royalty such as $xx for 3/16ths, $yy for 1/5th or $zz for 1/4. The bonus amounts are not public, so unless someone on the forum or at the local coffee shop shares, it takes some detective work. The closest you can come to public info is a pooling order in the last 12 months in that section or the surrounding eight sections.
The closest one was in section 22-19N-20W in 2023, so a bit out of date. At that time it was $700 3/16ths, $500 1/5th, or $200 1/4th, so a ballpark idea.
It is advisable to get legal advice on any draft lease as they are rarely in the mineral owner’s favor. The clauses in the lease are much more important than the amount of the bonus. Most savvy mineral owners would prefer the largest royalty as the production royalties from a good well(s) far outweigh the bonus.
Thank you so much for the information. I have a copy of the lease phrases that you suggest and also access to NARO. So appreciative of all of your help.