Received an offer today for $400 w/20% royalty in Labor 49, League 278 of Glasscock Survey in Dawson County Texas. Does this sound fair? This is my first experience, didn’t even know we had mineral rights! Any suggestions, advice would be appreciated.
Do not let them get away with a 20% offer. This year we have signed several leases in the same area you are talking about. The going rate on leases these days is 25%. The $400 per acre is about right. This is a hot area right now, there are plenty of companies willing to give you a 25% lease at $400 per acre.
HH - Is the lease offer from CGS Operating? They have been leasing in the area at 22.5% royalty.
The best i could do was $575 and acre and 3year initial and 3 year option at 22.5% not real thrilled about the 3 year option or the 22.5% but i guess he wore me down. I think the $575 is good but not the length of the term or the % Especially since they will likely just sit on it and not do a anything about development That is as much of annoyance as anything else. This place is run by a bunch of wimps I cant say d*** ??? Come on Guys
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