Last week my mother received an offer to lease her mineral rights in Dewey County, OK. I was curious if anyone knows what kind of activity is going on in Section 4, T18N, R14W. She was offered $600 per acre for 3 years with option for 2 more and 3/16 royalty. From what we have read this seems a little low, maybe should be $1000 - 1500. They are supposed to send the contract for us to look over. Will it give the total area they are leasing and if the royalties are on the net or gross. I was told we want it to be on the gross. Any comments would be greatly appreciated.
Tim I am not sure on going but think may be low. I knew at one time they were offering around $900.00 I leased about 3 years a go and only got $175.00 but was before all the activity. They drilled and we have a producing well which holds the lease. I am in Sec 1 16 N 14W Which would be South of your moms.
I think you should be expecting somewhere in the $800 range with a Pugh clause. Do not have an option to extend because it only hurts the value of your minerals by having them tied up like that.