Have been corresponding on and off with a landman regarding leasing some mineral interests I have in Baca County. (See discussion on Baca County Group page.) As there apparently is not a lot of recent activity there and the group is small, I'm not getting any response to my questions. So I'm hoping to broaden the search. Latest offer is $25/acre with 3/16 royalty on a 2 year lease. That's a lot better than his initial $20/acre, 1/8 royalty on a 5 year lease. I understand I'm not dealing with the Bakkan or Eagle Ford here, so the 3/16 seems reasonable. But is $25/acre the going rate in that part of Colorado? Seems low even for an unproven location. Any knowledge or advice would be appreciated
I would hesitate to lease anything for less than $50 an acre and would only do that with a 3/16th and a "no post-production expense" clause. They can pay their own compression, transportation, and marketing. Not my job. It is a "royalty"...meaning "expense free".