I just inherited 118 acres mineral rights, the lease offer is 15percent 424.00 bonus signing with EQT in Mannington district marion west virginia, I have no idea what I am doing, any help offered is greatly appreciated
Marion County is a tough place since the county records are NOT online and very difficult for the normal folks to access. You really should speak with a local attorney that specializes in minerals. You should probably start by reading the entire lease to see when it was signed, if there is an extension clause or a pugh clause and what the deductions are to figure your real royalty. Also, you should check to find out how many “net mineral acres” you own. This can usually be found on the Order For Payment from EQT
You can get 18% on the royalty and $3500/acre on the bonus. I’m assuming that you inherited a small part of the 118 acre tract or they would have made an offer significantly more than the $424.00 you mentioned.
Make sure to take care of liability by getting a No Warranty of Title clause and a Hold Harmless clause. Also try to get no Automatic Extension of the Primary Term and a Pugh clause, or at least a Formation limit (which is more likely since you probably have a small net mineral interest). Good luck, and have fun!
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If you haven’t already, you might want to consult an attorney. If you do, I highly recommend Scott Windom with the Windom law firm. He is very knowledgeable with oil/gas leases. He helped me immensely.
Location of I leased in that area 2yrs ago 4800 per acre and 18%gross and only Marcelshell