I’ve been offered a bonus of $250 per net acre to LEASE my oil/gas/mineral rights in the Joel B. Craine Survey of Harrison County, Texas.
What is a reasonable price range per acre for leasing in this area?
Any information is appreciated. Thanks!
Can only comment that the offer should be for 25% royalty and you need good clauses to protect from too many post production charges. Money from royalty will hopefully, way out pace the bonus money.
Thank you for sharing your insights. Much appreciated!
I suggest taking a 1/4 royalty as well. Also, get a depth clause in there.
Agree on all of the above. Depending on your net acreage, I personally wouldn’t want to lose the opportunity to sign a lease arguing over bonus amount. $250 seems a little low, but rates can vary wildly depending on a multitude of factors and if you have no other offers, what they are willing pay you becomes market rate. With that being said, personally I would sign for 25% royalty with a vertical and horizontal pugh clause, strike the option (usually they offer a 3 year primary term with a 2 year automatic option to extend). Beyond that, since Harrison is not incredibly competitive right now, I’d go ahead and lease and hope for productive drilling - good luck!
Thank you, Diesel. I appreciate your help.
Thank you, Marfa Lights, for all of the insights.
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