Have received lease offer of $500, 3/16 interest, 3 Yr term with 3 Yr renewal - is this reasonable?
Check your description again. 15N-10W is in Blaine, many miles to the north. Do you mean 15-8N-10W? Most of us would not want a 3 year extension as that holds the acreage too long. There are other issues to discuss, but let’s get the location correct first.
OK - Yes you are correct - it is 15-8N-10W.
The 3/16ths for 3 years is reasonable for the area. Most of us would not go for the 3 year extension. The clauses in the lease are the most important item. The bonus amount are not public. The closest you can come is if there are pooling orders in the eight contiguous sections within the last year. There are none near you. Only one lease has been filed so far in that section in the last 24 months.
Suggest that you get a good oil and gas attorney to review the draft lease as they are rarely in the mineral owner’s favor and will need significant edits.
Appreciate the information and the advice. Thank you for your time and assistance.