Martha, I have been offered $400 per acre on 3/16ths. I am in Section 9 in Dewey County. Any idea if this is reasonable?
Thanks in advance HDuke
Welcome to the forum!
You need to give the complete description with the township and range. There are many section 9s in the county.
Seiling: Section 9-T19N-R16W Dewey County
Here you go
Offers are not usually public, but maybe someone on the forum can share if they have similar ones. In general, I always ask what they are offering at 1/5th and 1/4, what reservoir do they intend to drill, is the well vertical or horizontal, who will be the operator, when do they plan on pooling and what percentage of the acreage do they already have leased. The answers may or may not be enlightening.
I do see some filed leases in that section already and some are at 1/5th. The higher the royalty, the better for me. The bonus is not significant compared to the long term royalties if the well is good and especially if there is more than one well down the line.
If you are new to leasing, it is very wise to get a good oil and gas attorney to look at any draft lease and make suggestions for mineral owner friendly edits.
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