What do y'all think?
Glad to hear someone is getting some offers. Regarding the bonus per acre and the royalty percentage, everything is negotiable. Like some have stated on this site, royalty amount is more important than bonus amount. I would push to get them to 25%. If they won't budge, then ask for 24%. Also, you want to have an oil/gas attorney look it over BEFORE you sign because most of the oil companies lease forms are in THEIR favor. There are other very important clauses that should be in any agreement you sign i.e. pugh clause, shut-in, etc. Several attorneys that frequent this site have posted their favorite clauses that protect you, the land owner. Those can be found on the home page towards the bottom center.
Good luck! Keep us posted on your progress. I'm in your area and hopefully Anadarko will be ringing my phone soon.
I can recommend a landman/mineral manager who helped us get our land leased in Grimes County last year. Private message me and I can provide you his information. He is very good and reasonable. Leasing minerals is not a do-it-yourself project. There are too many pitfalls and you have to have an experienced representative on your side to handle the negotiations and the wording of the lease. He/she can accomplish more than you ever will be able to because oil companies have an advantage over a mineral owner.
Jason, would you be willing to post the legal description of your property? (Location and acreage amount)
You can do better than what you were advised.
If you think that professionals are expensive, wait until you get represented by an amateur.
Buddy Cotten
Jason Tomkivits said:
I did find a very experienced person to look over the contract, and he has provided me with a list of changes that need to be made. I just need to submit the changes. He also recommended that I ask for $700 an acre at 25% royalty or $1000 an acre at the original royalty of 22.5%. I am definitely taking my time with this. I also contacted my neighbor, and she said that she received an offer from the same company at $400 an acre with 22.5% royalty. It appears that Anadarko is trying to secure a lot of land in our area.
I was wondering about the legal description so that I could see where in the County the property is. The location has an effect on the lease offers. Also, do you own 100% of a 30 acre tract, or do you own a portion of a larger tract? Such as 30% of a 100 acre tract?