I have 80 acres on this plot and am receiving an offer from turner and gas so they can drill. Th offer is 350/per acre + 3/16 of the royalties if they strike oil. Is that a good deal?
North half of north west corner N/2 NW/4 Of section 23, Township 19 N, Range 12 W
Thank you Amy
Companies generally start out with the 3/16ths offer, but I always ask for what they are offering for 1/5th and 1/4 as the royalty is more important to me than the bonus amount.
Are you sure you have 80 acres or a proportional interest in 80 acres. 80 acres would be rare after this many generations have passed since original patents.
I always ask: Who will be the operator? What kind of well will they be drilling? What reservoir will be the target? When do they expect to permit and drill?
I often wait for the forced pooling if I cannot negotiate the lease to a more mineral owner friendly version. The original draft lease will be all in the operator’s favor and will need some work.
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