Hi. I’m new and have a question. I live out of state so am not familiar with mineral rights leases. I was offered a lease today for mineral rights to 14 plus acres in Ellsworth, Tyler county. The offer is 1250.00 per acre sign bonus and 14.5 royalty. Is this a fair offer? Thank you in advance for your time!
If you were offered 14.5, that’s pretty good. May I ask if the offer came through Antero?
Yes it came from Antero yesterday in a pdf with hard copy being maiked
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The issue that everyone doesn’t understand is that Antero is giving you 14% on royalty, but if you read your royalty clause in the lease, you as the Lessor is giving the Lessee the right to take post-production out of your royalty. So after Antero deducted those fees, your really getting 6.5 to 7% royalty.
Cheryl22- You need to negotiate the lease. Ask the landman for 14% Gross at the wellhead, to not take these fees. $1250 an acre is very low for Tyler County. I would negotiate $5000 an acre. You will also want to get the General Warranty out of the lease. See if Antero will give you a depth clause, Pugh Clause, Hold Harmless Clause, better Shut-in clause, etc… This is why you should always have an attorney review the lease. The lease is made to benefit Antero, NOT you!
Thank you so much for this information. I left a message at a law firm and hope to hear back Monday. I truly appreciate your time.
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If they are offering 14.5 then you should be able to get at least a little more. 15% was a standard with 12.5% the minimum when we signed leases a few years back. Times are different now and the companies are not as giving. Gross at the wellhead with no deductions as was stated is best. If you google oil/gas leases on what to have in a lease, you can see what to ask for and what needs to be deleted. Do not sign a standard lease. Those benefit the company. Things all depend on how much you own too. The more you own the more leverage you have. Have them tell you what % of the whole tract you own and how many heirs there are in that whole tract.
118.5 acres total. 25% owned by myself and brother-in-law whom no one can find. Lease to me is for 14.81250 acres.
@Cheryl22 what state are you located in?
I live in ohio mahoning county
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