We have inherited some mineral rights in Roosevelt co. township 31 north range 54 east section 6 ( also some in Sheridan ) We are complete novices We have an offer for $275.00 3 year lease 2 year option one sixth royalty slightly more per acre on a 4 year lease and a 5 year lease. Any advice would be welcome
michael:
The bonus is on the low side; the 3 year lease is normal; forget the 2 year option and go for 18% minimum royalty, preferalbly 20%. Look at the current area around your minerals in regards to new drills and permits. Look at the production from any new drills as this is a major factor in your negotiating power. I have minerals in T30N;R59E area but I leased them back in 2008 - 2009 so I am not up to current bonus amounts for this area. I would guess $800/acre (ballpark figure) but again, measure the activity in the area. You can go to the Montana Oil and Gas website and utilize the GIS map to view the current status of this area. Hope this helps.