Section 1 (13N/20W) $200 per net mineral acre, 3 year paid up, 3/16 royalty, $2k bonus. Option to extend for 2 years.
Can someone on this forum actually tell me in a response here if this is a good deal or not and if not what would you want changed and to what - exactly to what 
? Thank you.
If you are wanting exact advice, I would consult with an oil & gas attorney. But, I would ask for more royalty, more bonus and definitely scratch the 2 year option. A good deal is up to each lessor.
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What would you personally ask for re bonus and royalty? I am always instantly referred to attorneys on here but I’m just asking for personal advice from other owners and if anyone happens to have info to share.
Horrible Deal! In over 40 year’s of leasing I have NEVER been paid the option on any of my leases. I refuse to do an option. I did one with EOG on only 12 acres and at the end of the 3 year term they offered to extend for another 5 year’s instead of the 2 year option for half the agreed price! I would not sign and sent them a certified letter to provide and file a release of the lease as agreed to in the original lease. It made the landman for them mad, BUT! If they want an option they need to pay you for it “up front”.
Thanks about the option - what exactly would we look for on lease to say it’s a paid upfront option? And how is this paid - within the bonus?
I’ve seen on other threads what $ mineral acre is going for on other areas. Anyone know what Custer section 1 is going for?
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