My sister and I received a letter Thursday regarding leasing mineral rights that will be available shortly oink Carter County 4-03S-03W. It has been leased twice but nothing has happened. This new company is offering Option 1: Bonus $1250 3/16% royalty for 3 yrs; Option 2 Bonus $1000 1/5% royalty 3 yrs or Bonus 3 $750 per mineral ac 22% royalty. I have never been offered 22%. Is this because they want to just hold this lease but probably won’t drill?
22% is because they cannot afford (or don’t want) to offer 25%. The first offer from an agent is often not their final offer. Also the clauses in a lease or much more important than the bonus amounts. First drafts of leases are almost always totally in the favor of the operator and not the mineral owner. It will take some negotiation before getting a good lease. Suggest that you get an oil and gas attorney to look over the lease before signing. Also, NEVER, hand over a signed lease without getting paid at the same time.
Thank you for replying so quickly. The letter had asked that we not sign with anyone else until we contacted them. I guess we really need to start finding someone to start helping us with this stuff. The terms on the last lease were really bad. When I read over them the other day I couldn’t believe we agreed to them other than we had just lost our brother.
Thanks again. You are so awesome to dedicate so much time in helping others.
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