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?
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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.