Own 50 acres in Williams county, T159N, R96W, Sec21 Been offered $350/acre for a 3/16 interest for a five year lease. Can we do better?
Blockquote
1 Like
You should get at least a 20% royalty. Probably a bigger bonus too. I think our last bonus was $1750.
Personally, I would not want less than 20% but it’s been a few years now since my leases were done and they weren’t that high. Curious to see what others say.
Five years is a non-starter for me. Three years is my max. Also, the clauses in the lease are very important. Most draft leases are not in the mineral owner’s favor, so it is a good idea to get a good oil and gas attorney to look at the lease and make suggested edits.
Did you end up signing a lease? As mentioned above, try not to make too much of the Bonu$ Payment. The share and term are very important. I think many of the speculative leases in the Bakken are going to longer terms, but not sure what is typical this year. We were also offered a 5, but haven’t done anything yet. Who is offering? Phoenix and Koda seem most active in the area.
This topic was automatically closed after 90 days. New replies are no longer allowed.